Lululemon shares 11.14% after a sharp guidance cut
Lululemon's 1quarterly revenue exceeded expectations, but earnings per share fell short of estimates. The company cited social media backlash and weakness in new products as reasons and 2quarterly and full-year guidance. In premarket trading, shares 11.14% to hit a 52-week low.
Lululemon 1reported its quarterly results. The company said revenue exceeded market expectations, while earnings per share fell short of estimates. In its earnings release, it noted a divergence between revenue and profit.
The company cited social media backlash and weak new-product launches as causes of slowing revenue. The company explained that consumer response to some product categories fell short of expectations. It said these effects weakened the sales trend.
Lululemon 2significantly lowered both its quarterly and full-year outlook. The company disclosed that it had presented new guidance. The guidance adjustment entails changes to the company's quarterly plans and investor expectations.
In regional performance, North American revenue decreased year over year by 3%. Meanwhile, revenue in China grew by 30% over the same period. The company’s announcement specifies the growth and decline rates by region.
Following the news, the stock fell by 11.14% in premarket trading. Based on the period before trading began, the stock had fallen to a 52-week low. The company said it plans to provide additional explanations regarding its results and guidance.
Sources: Benzinga
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