Lululemon Athletica cut its full-year guidance for the second time this year after reporting a 4% revenue decline to $2.4 billion and a 10% drop in comparable sales on a constant dollar basis. Full-year revenue is now expected to fall 5% to 7%, landing between $10.35 billion and $10.5 billion, while full-year earnings per share guidance dropped to $9.48 to $9.73 from $13.26 in the prior fiscal year. Third-quarter operating margin is projected at roughly 6.5%, compared with 17% a year earlier, and the company trimmed its store-opening plan to about 35 net new locations from an earlier target of 40. North America revenue fell 8%, with Canada down 11% on a reported basis, and leggings sales dropped approximately 20%, while China Mainland revenue grew 4% on a reported basis but declined 2% in constant currency amid negative social media commentary. Incoming CEO Heidi O'Neill was set to start the following week, tasked with rethinking a strategy that clearly needs it.
Lululemon Athletica Inc.Lululemon cut full-year guidance for the second time this year after a 4% revenue decline and 10% drop in comparable sales, with EPS guidance slashed to $9.48-$9.73 from $13.26.
