Lululemon Slashes Full-Year Guidance, Stock Plunges 18%
LULU is trading near its 52-week low of $104.44 (4.6% below the low) on elevated volume (4.6× avg).
Summary
Lululemon reported Q2 revenue of $2.42B, missing estimates of $2.46B, with comparable sales down 9% year-over-year. The company slashed full-year revenue guidance to $10.35B-$10.5B from $11B-$11.15B and EPS guidance to $9.48-$9.73 from $10.95-$11.15, citing negative social media commentary and a slowdown in core categories like leggings. This follows a June outlook cut and a Q1 net income drop of 38%, deepening the negative trend. The stock fell 18.2% in extended trading to $99.65, near its 52-week low. New CEO Heidi O'Neill takes over next week, adding uncertainty to the turnaround effort.
Updates
· Reuters — 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.
At the time of this announcement, LULU was trading at $99.65 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 9 out of 10. Source: CNBC TV18.