Despite an outstanding fourth quarter in which Lululemon Athletica surpassed market expectations in both revenue and profit, the Canadian sporting goods manufacturer is facing a significant decline in stock price. The slump follows a disappointing revenue outlook that dampens investor sentiment. In after-hours trading and in pre-market activity on Friday, Lululemon's stock suffered considerable losses.

In detail, the revenue of the company known for its yoga equipment grew by 16 percent to now $3.2 billion compared to the same quarter last year. Analysts had only anticipated earnings of $3.19 billion. The earnings per share also significantly exceeded the predictions of analysts, who had expected an EPS of $5.00, as well as the company's own forecast of $5.02, with an actual EPS of $5.28. A growth of 20 percent compared to the previous year.

The outlook for the future, however, looks less rosy. For the first quarter of the new fiscal year, Lululemon expects revenues of 2.18 billion US dollars, which falls short of the expectations of 2.26 billion US dollars. The earnings per share forecast of 2.38 US dollars is also below the previous assumptions of analysts, who had anticipated 2.55 US dollars. This cautious forecast is also reflected in the expectations for the entire year, with the company anticipating total revenues of 10.75 billion US dollars and an EPS of 14.10 US dollars – both below market expectations.

These skeptical forecasts have led to considerable uncertainty among investors. The pre-market trading on Friday saw a dramatic decline in Lululemon shares by 11.72 percent to 422.70 US dollars. Given a long-term expected double-digit growth, which is implied in the stock's price-earnings ratio, the cautious outlook raises questions. Management is now faced with the challenge of regaining investor confidence and focusing on sustainable growth in order to achieve long-term goals.