Lululemon Stock Drops After Disappointing Earnings Report
Shares of Lululemon fell nearly 15% after the company reported weaker-than-expected earnings and a sales decline for its second fiscal quarter. Revenue dropped by 4%, with comparable store sales falling 9%. The retailer also cut its full-year revenue guidance, now expecting between $10.35 billion and $10.5 billion—down from earlier projections of $11 billion to $11.15 billion. Lululemon cited a challenging retail environment as well as internal struggles in regaining customer relevance. Despite a boost in gross margin due to tariff refunds, the company's net income declined year-over-year. The new CEO, Heidi O'Neill, is set to take over next week amid ongoing efforts to stabilize and revitalize Lululemon’s performance.
Tickers: $LULU
Topics: CEO transition earnings report retail revenue decline