the company has an entirely new management team spearheaded by a former NKE executive who has put a whole new strategy in place to improve profits short term and product revenues longer term. With the current turmoil in the apparel industry and given the poor execution history of the company analysts obviously modeled profits carefully (though revenue estimates were still too high) this time.
the stock has lost close to $1.50 within the last few weeks so the strong after hours move makes a lot of sense here. Would expect generally positive analyst commentary tomorrow but the implied VERY weak revenue guidance might temper sentiment somewhat.
Despite the revenue challenges I would still prefer the long side for tomorrow as the company is seemingly getting its financial house in order somewhat sooner and much better than expected.