MW Lululemon's forecast sinks shares, amid 'ongoing macro uncertainties'
By Bill Peters
Athleisure giant continues to roll out new products, CEO says
Shares of Luluemon Athletica Inc. fell after hours on Thursday after the athleisure-wear maker forecast full-year sales that were below Wall Street's expectations.
For the full year, Lululemon $(LULU)$ said it expects sales of $11.15 billion to $11.3 billion, with the midpoint below the $11.3 billion expected by analysts.
Shares slid 7.8% in extended trading.
Lululemon reported $3.61 billion in sales for the fourth quarter, a 13% year-over-year gain. The company reported earnings per share of $6.14.
Analysts polled by FactSet expected Lululemon to report earnings per share of $5.85, on revenue of $3.58 billion and same-store sales growth of 5.4%.
Chief Executive Calvin McDonald said in a statement that Lululemon "continued to introduce more newness and innovation into our product assortment." However, Chief Financial Officer Meghan Frank pointed to "ongoing macro uncertainties."
The stock has fallen 12.6% over the past 12 months, amid worries about a cautious consumer more focused on essentials than on clothing. However, Raymond James analysts have pointed to new clothing offerings, including its new Glow Up line of training clothing, as possible bright spots.
-Bill Peters
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March 27, 2025 16:29 ET (20:29 GMT)
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