Lululemon guidance cut, share price 11.14% down
Lululemon 6 month 5 day 1 announced quarterly results. Revenue exceeded expectations, but net income fell short of expectations, and it lowered its 2 quarterly and full-year guidance, citing social media backlash and weak performance of new products. North American revenue fell 3%, while revenue in China rose 30%; in after-hours trading, the share price fell 11.14% to record a 52-week low.
Lululemon 6 month 5 day 1 announced quarterly results. The company said revenue exceeded market expectations. Net income, however, fell short of market expectations.
The company lowered its 2 quarterly and full-year guidance. It disclosed that its guidance had been lowered. Management informed investors of the change through a disclosure.
By region, North American revenue fell 3%. Revenue in China rose 30%. The company indicated that performance differed between the two regions.
Lululemon cited backlash on social media and the weak launch of new products as the reasons for the slowdown in sales. The company explained that these factors affected sales momentum. Specific figures by product were not disclosed.
In after-hours trading, the stock fell by %.11.14With this decline, the stock recorded its lowest level of the week.52The movement in the stock price before the market opened was reflected.
As the company announcement and the stock-price reaction came at the same time, investor disclosures were made on the same day. The company said it would announce any further revisions to detailed guidance through disclosures. The information currently available is as stated above.
Sources: Benzinga
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