Shares of lululemon athletica  (NASDAQ: LULU) took a sharp hit Thursday after the company announced its latest quarterly and annual financial results on Wednesday.

For its fiscal fourth quarter, which ended Jan. 29, the athleisure wear maker booked net revenue of just under $790 million, which was 12% higher on a year-over-year basis. This was on the back of total comparable sales -- the combination of comparable store and direct to consumer sales -- that rose by 8%. Net income for the quarter was 16% higher at $136 million, or $0.99 per diluted share.

The EPS figure just barely missed the average analyst estimate of $1.00. Prognosticators had been expecting $783.5 million on the top line.

For the full year, net revenue landed at $2.34 billion, a 14% improvement over the 2015 figure. Net income also rose by 14%, coming in at just over $303 million.

Lululemon also proffered guidance for both Q1 2017 and the full fiscal year. For the former, it believes net revenue will land in the range of $510 million to $515 million, with diluted EPS coming in at $0.25 to $0.27. Its projections for 2017 as a whole are for ranges of $2.55 billion to $2.60 billion and $2.26 to $2.36, respectively.

These estimates fell well short of analysts' projections. On average, these anticipated a Q1 top line of just over $552 million, and EPS of $0.39. Meanwhile, analysts were modeling $2.62 billion in net revenue for the full year, and EPS of $2.57.

Those guidance shortfalls were likely a key reason why lululemon's stock closed down significantly (by 23% to $50.76) the day after the results were announced.

Going forward, the company plans to roll out brighter clothing in an attempt to juice its business. "We should have been bolder with the color assortment," said CEO Laurent Potdevin in a conference call with analysts regarding the current offerings. The sprightlier wares should be on shelves as early as next week, he added.

10 stocks we like better than Lululemon Athletica
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Lululemon Athletica wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of February 6, 2017

Eric Volkman has no position in any stocks mentioned.

Want to learn how to invest?

Get a free 10 week email series that will teach you how to start investing.

Delivered twice a week, straight to your inbox.