June 12 - Struggling athletic apparel retailer Lululemon Athletica issued a weak quarterly outlook and cut its full year forecast after a 60 percent plunge in profits. The company's CFO is retiring. Fred Katayama reports.
More setbacks for struggling Lululemon. The yoga wear retailer's quarterly profit plunged 60 percent. It's taking a huge tax charge tied to its plan to buy back its sinking shares. It also issued a weak outlook for what its new CEO calls a "transitional year." Its profit forecast for the current quarter was far shy of what Wall Street expected. And it lowered its outlook for the entire fiscal year. The pioneer in yoga wear with the cultish following now faces strong competition from the likes of Gap, Under Armour, and VF. On top of all that, the retailer said its CFO would retire. John Currie will join the string of executives who have left the company since last March. That's when Lululemon recalled its key product, yoga pants that its women customers said were too revealing. All this comes the day after Lululemon's controversial founder and largest shareholder, Chip Wilson, moved to oust the executive who replaced him as chairman. But shareholders re-elected Michael Casey and another director Wilson had opposed. Lululemon's once high-flying shares tumbled sharply at the market open, adding to its 35 percent plunge since the recall.