Lululemon (LULU) is down sharply this morning on problems with a problematic "bottom line" quite literally. The company has pulled many yoga pants off its store shelves because the fabric is too sheer. Lululemon says it expects the problem to shrink sales about 5%percent. At least they're transparent about it. Lululemon has been trading within a $10 range for the past six months. But it dropped 4% yesterday and is now at its lowest level since the summer.
Next we look at Dell (DELL), which has been up more than 2% in extended trading. The rise comes amid reports that Blackstone may take part in a bid for the company. Silver Lake has already offered $24.4 billion dollars in a proposal that critics have called undervalued. Competitors have until Friday to initiate counteroffers.
Skullcandy (SKUL) has scared-up a 6% climb in extended trading. The company named a new CEO yesterday afternoon. He comes from Nike. Skullcandy makes things like headphones and iPod cases, all with its bony logo. It has been a headache for shareholders recently because of increased competition. Shares hit their 52-week high last April. Since then they've lost more than two-thirds of their price.
Uniform-maker Cintas (CTAS) will report earnings after the closing bell. The company's shares rose 1.7% to hit their 52-week high. Cintas stands to benefit as the job market shows more signs of recovery. Analysts are expecting the company to post earnings of 61-cents a share, which would be a 5% increase over last year.