economy
Lululemon cuts annual outlook, citing 'negative' media commentary and disappointing product launches
Lululemon is expecting its situation to get a lot worse before it gets better, as it issued weak guidance for the full year.
TL;DR
- Lululemon reduced its full-year sales and earnings outlook, citing negative media commentary and underwhelming product launches.
- North America, the company's primary market, saw comparable sales decline by 5%, marking the fifth consecutive quarter of decreases.
- International sales, particularly in China, showed strong growth (22% overall, 13% comparable sales).
- Gross margin decreased significantly, impacted by tariffs and increased discounting.
- The company has appointed Heidi O'Neill as its new CEO, set to start in September, and settled its proxy battle with founder Chip Wilson.
- Lululemon's stock has dropped significantly this year, with shares falling further after the weak guidance was released.