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Lululemon stock plunges 15% on disappointing earnings and outlook
Lululemon said weaker demand and a 9% comparable-sales drop led to a second guidance cut, while incoming CEO Heidi O'Neill prepares to take over next week.
- Shares of Lululemon plunged 15% on Thursday after the retailer reported a 4% decline in revenue and a 9% comparable sales decrease for the second fiscal quarter.
- Lululemon Athletica Inc. downgraded its full-year revenue outlook to between $10.35 billion and $10.5 billion, down from its previous guidance of $11 billion to $11.15 billion.
- The Vancouver-based retailer reported net income of $329.2 million, or $2.92 per share, while gross margin grew 5.6% boosted by a $134.5 million tariff refund.
- Lululemon has faced criticism from founder Chip Wilson; the company reached an agreement over the summer to add two of his three nominees to the board.
- Former Nike executive Heidi will take the reins as CEO next week while the company expects third-quarter revenue between $2.29 billion and $2.32 billion, representing a roughly 10% to 11% decline.
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Lululemon Sinks 20% After Second Guidance Cut: Michael Burry Calls It a Fat Pitch Below $100
Lululemon just cut guidance for the second time this year and the stock cratered below $100, but at least one famous contrarian investor sees a generational buying opportunity in the wreckage while analysts warn the pain is far from over.
·Lakewood, United States
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Lululemon stock collapses: Soft sales in China reveal negative impact of viral drum controversy
Shares of Lululemon Athletica (Nasdaq: LULU) are down more than 20% in premarket trading on Friday. The plunge follows a disappointing second quarter earnings report, released by the Canadian apparel company on Thursday. Lululemon’s revenue fell 4% year-over-year (YOY) to $2.4 billion. It failed to meet the company’s predicted 2% to 3% decline, “with the shortfall driven predominantly by China Mainland,” Lululemon interim CEO Meghan Frank said…
·New York, United States
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Total News Sources68
Leaning Left10Leaning Right10Center19Last UpdatedBias Distribution49% Center
Bias Distribution
- 49% of the sources are Center
49% Center
L 26%
C 49%
R 25%
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