Lululemon stock plunges 15% on disappointing earnings and outlook
Lululemon posted another quarter of disappointing results and a sales slowdown as the company struggles to turn its business around.
TL;DR
- Lululemon stock fell 15% after reporting poor quarterly results and cutting its annual forecast.
- The company experienced a 4% revenue decline and a 9% decrease in comparable sales for the second fiscal quarter.
- Negative social media commentary and a slowdown in key categories like leggings impacted performance.
- Lululemon expects third-quarter revenue to decline by 10% to 11% year-over-year.
- The full-year net revenue forecast was reduced, representing a 5% to 7% decline.
- Gross profit decreased 1%, but gross margin grew 5.6% due to a tariff refund.
- The company is focusing on new styles and inventory management to improve sales.
- The new CEO, Heidi O'Neill, will take over next week.