Lululemon net income 38% decline, guidance sharply lowered
Lululemon said in its quarterly results released in 6 month on 10 day that comparable sales increased by only 1%, while net income fell 38% year over year. The company lowered its full-year guidance, and its share price has fallen more than 5% over the past 60 years and currently trades at 10 times earnings.
Lululemon released its latest quarterly results on 6 month 10 day local time. The company said that its performance for the quarter fell short of expectations. It also disclosed that it had lowered its full-year guidance.
Comparable sales for the same period increased 1% year over year. Net income decreased 38% year over year. The company reported both sales growth and changes in earnings.
The company lowered its outlook for future performance in connection with the quarter's results. Specific guidance figures should be checked in the company's disclosure. The new chief executive officer is Heidi O'Neill.
Recently 5the stock price has fallen by more than 60%. Investors are focusing on the gap between the stock price movement and performance. The company said this earnings announcement affected the stock price.
The current stock price is trading at 10times earnings per share. At the same time, the average price-to-earnings ratio of the S&P 500 index is around 26 times. The company’s valuation metrics are lower than the index average.
Some assessments point out that the current stock price appears undervalued. Other assessments have also raised warnings that the possibility of a recovery is uncertain. Investors are seeking to assess the impact of the downward guidance revision and performance in upcoming quarters.
Sources: The Motley Fool
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