Lululemon Stock Slumps 20% as Q2, Full-Year Profit Forecasts Disappoint

Shares of Lululemon Athletica (Lulu) drowned 20% on Friday after the apparel manufacturer’s second quarter point of view, and the company also cut its entire year profit forecast forecast.

Lulleleman projects $ 2.54 billion to revenue from $ 2.54 billion to $ 2.56 billion and income from $ 2.85 to $ 2.90 per share, $ 2.57 billion and below the consensus of an analyst with visible alpha of $ 3.28 below the consensus.

The athletic apparel brand still expects $ 11.15 billion to $ 11.30 billion to $ 11.30 billion in full year’s sales, but reduced its EPS forecast from $ 14.58 to $ 14.78 from $ 14.58 to $ 14.78, which was below $ 14.95 to $ 15.15 before $ 14.95 to $ 15.15. Responding to the expectation of low profit, JP Morgan and UBS analysts reduced their price goals for stock to $ 303 and $ 290 respectively, respectively from $ 389 and $ 330.

The CEO says that consumers are cautious, CFO hopes to increase the price to handle tariffs

CEO Calvin McDonald’s stated that customers have “replied well for product innovations” by the company, as it seems to fix the “Newness problem”, which has been described earlier. However, McDonald’s stated in Lululemone’s earnings that the American consumers are “alert right now, and they are very deliberate about their purchase decisions, according to an alphasens transcript.”

CFO Meghan Frank said about Lululemon’s plans, “We are planning to take strategic price growth, looking for items by item in our classification as we usually do, and it will increase the value on a small part of our classification, and they will be minor in nature,” CFO Meghan Frank said about the effects of Lululemone. For. He said that the company is also planning to make some changes in its supply chain, which will have more impact on the second half of the year.

The results of the first-Tamahi’s top- and bottom-line came as the sales of analysts were expected to be $ 2.37 billion and $ 2.60 EPS, but an increase of 1% comparable sales fell well by an increase of 4.56% that analysts expected.

Entering the day, Lululeman’s shares were about 14% below since the beginning of the year. It is now close to 30%.

This article has been updated as it was first published to reflect the new share price information.