Lululemon (LULU) earnings Q2 2024

Signage at a Lululemon store in New York, US, on Thursday, Aug. 22, 2024. Lululemon Athletica Inc. is scheduled to release earnings figures on August 29. 

Yuki Iwamura | Bloomberg | Getty Images

Lululemon missed Wall Street’s fiscal second-quarter sales expectations and lowered its guidance Thursday after it botched a highly anticipated product launch and growth slowed in the Americas. 

The company now expects full year net revenue to be between $10.38 and $10.48 billion, down from a previous range of between $10.7 billion and $10.8 billion. Lululemon anticipates earnings per share will be in a range of $13.95 to $14.15, down from previous guidance of $14.27 to $14.47.

Here’s how company did compared with what Wall Street was anticipating, based on a survey of analysts by LSEG, formerly known as Refinitiv:

  • Earnings per share: $3.15 vs. $2.93 expected
  • Revenue: $2.37 billion vs. $2.41 billion expected

Shares dropped as much as 10% in extended trading.

The company’s reported net income for the three-month period that ended July 28 was $393 million, or $3.15 per share, compared with $342 million, or $2.68 per share, a year earlier. 

Sales rose to $2.37 billion, up about 7% from $2.21 billion a year earlier. Beyond total sales, Lululemon also missed expectations on comparable sales, which grew 2%, well behind estimates of 5.9%, according to StreetAccount.

During the quarter, Lululemon pulled its Breezethrough leggings, launched in early July, after it received a wave of complaints about the product’s unflattering fit. The botched launch came after the company struggled with a number of other self-inflicted issues with its assortment, including not having the right colors and sizes that its core customers desired.

The flops have contributed to a slowdown in the company’s largest market, the Americas. During the quarter, sales grew only 1% in the region.

Sales jumped 29% in Lululemon’s international markets as the company looks to China for growth.

FOLLOW US ON GOOGLE NEWS

Read original article here

Denial of responsibility! Todays Chronic is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – todayschronic.com. The content will be deleted within 24 hours.

Leave a Comment