Lululemon Slashes Forecast Again, Shares Plunge 18% Premarket
LULU is trading near its 52-week low of $104.44 (4.2% below the low) on elevated volume (4.6× avg).
Summary
Lululemon cut its full-year forecast for the second time, sending shares down about 18% in premarket trading to $100.1. The company reported Q2 revenue of $2.42B, missing estimates of $2.46B, with comparable sales down 9% year-over-year. Americas revenue fell 8% in Q2, reversing a 1% increase a year earlier. At least 12 brokerages lowered price targets, with Piper Sandler setting a Street-low target of $80. Morgan Stanley warned sales could deteriorate further in H2 with limited visibility on demand recovery. Incoming CEO Heidi O'Neill, a former Nike executive, takes over on September 8 and faces the challenge of reviving North American demand amid intense competition and promotional pressure.
At the time of this announcement, LULU was trading at $100.03 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $14.5B. The 52-week trading range was $104.44 to $225.98. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.