Lululemon Shares Drop After Weak Guidance Triggers Revenue and Earnings Downgrades

Lululemon shares fell more than 10% in premarket trading after the company reported quarterly results and lowered its financial outlook for both the second quarter and full year, Grace O’Donnell reported for Yahoo Finance.

Company executives cited evolving macroeconomic conditions and demand pressures. (Photo: ajay_suresh Flickr)

The athletic apparel retailer now expects second-quarter revenue between $2.45 billion and $2.48 billion, below Wall Street expectations of approximately $2.6 billion. Adjusted earnings are forecast at $1.76 to $1.81 per share, also significantly below analyst estimates.

For the full fiscal year, Lululemon reduced its revenue outlook to $11.0 billion to $11.15 billion, down from a previous forecast of $11.35 billion to $11.5 billion.

The company also lowered its full-year earnings guidance.

Company executives cited evolving macroeconomic conditions and demand pressures, noting that adjustments were being made to strengthen product strategy and operational efficiency.

Interim leadership said the company is taking corrective actions to address weaker-than-expected performance and reposition its product offerings in key markets.