Shares of Lululemon (LULU) went sour today after the company announced its quarterly earnings. While the athletic apparel company barely beat Wall Street’s predictions by $0.02 a share, its profits fell to a very un-zen $19 million from over $47 million a year ago. Its see-through yoga pants debacle certainly helped bring in those awful numbers. But it wouldn’t be right not to mention and wonder if some of these earnings come courtesy of Lululemon’s founder (no longer, chairman) and biggest shareholder Chip Wilson. Wilson idiotically remarked that heavy – and even not so heavy women – should steer clear of his company’s merchandise. An ignorant statement like that – see-through yoga pants or not – ought to help destroy a company’s earnings. Besides that, the company is staring at some fierce competition from Gap’s Athleta brand and Under Armour. Shares of the company went downward dog by 35% in the past twelve months.
SEC no longer teed off at Phil?
Pro-golfer Phil Mickelson is happily teeing off now that SEC is pulling back from its investigation into whether he might have been involved in insider trading. Apparently the eleventh ranked golfer in the world wasn’t buying Clorox, shares of it that is, while billionaire Carl Icahn was planning to buy the company. However, the Feds are still curious about some “well-timed trades” by Mickelson and his buddy, pro-gambler Billy Walters back in 2012. While Phil Mickelson scored a million bucks on those trades, Walters allegedly notched a whopping $15 million on shares of Dean Foods.
Where o’ where does the economy stand?
The economy once again is toying with our emotions as it continues to pull in numbers with very mixed messages. The good news is that retail increased. The bad news is that it didn’t increase enough gaining only by 0.3% instead of the 0.6% predicted (and hoped for) by some supremely intelligent economists. Then there’s our fickle little job market. The good news: In May we say 217,000 jobs added. It’s been five years since the country has seen monthly job growth of over 200,000 per month. Yippee, right? No because the bad news: The number of people filing for unemployment went up to 317,000 last week. However, that number is still less than the yearly average so a slight yippee can be uttered. Then there’s the issue of wage growth. The issue being that wages aren’t doing that much growing.