Lululemon shares plunge as company lowers forecast.

Lululemon Athletica Inc. (LULU) shares fell Wednesday after the company reported lower profits in the third quarter and cut its forecast for the year.

Shares in the athletic wear company plunged 12% to $46.06 in afternoon trading.

The company's profit for the quarter ending Nov. 1, was $53.2 million, down from the $60.5 million reported for that three month period last year. Adjusted earnings per share was 35 cents. Third quarter revenue rose 14% to $479.7 million from $419.4 million during that period in 2014.

Lululemon said it now expects diluted earnings per share of $1.81 to $1.84 for 2015, down from a range of $1.87 to $1.92 that was previously forecast. That's due to revenues that are now projected to be between $2.03 and $2.04 billion for the year as compared to previous guidance of $2.03 to $2.06 billion.  .

Store sales saw a 6% uptick and the company's gross profit rose 7% to $224.8 million. That however was a smaller share of revenue than the third quarter of 2014, dropping to 46.9% versus 50.3%.