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Lululemon shares sink on disappointing outlook, slowdown in U.S. business

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Shares in Lululemon Athletica Inc. were down about 15 per cent in afternoon trading Fridayas investors reacted to lower revenue projections and a U.S. slowdown. The Vancouver-based athletic apparel retailer's fourth quarter, which ended Jan.

Shares in Lululemon Athletica Inc. were down about 15 per cent in afternoon trading Fridayas investors reacted to lower revenue projections and a U.S. slowdown.

The retailer has also noticed an increase in younger shoppers, which necessitate smaller sizes and covet a wider selection of colours that weren't always on hand. "U.S. consumer softness could partially be attributed to increased competition from upstarts Alo and Vuori," he told investors in a note. This year, the retailer plans to add 35 to 40 net new company-operated stores with many coming in markets outside North America where Lululemon isn't widely known.

 

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Lululemon shares sink on disappointing outlook, slowdown in U.S. businessShares in Lululemon Athletica Inc. were down about 15 per cent in afternoon trading Fridayas investors reacted to lower revenue projections and a U.S. slowdown. The Vancouver-based athletic apparel retailer's fourth quarter, which ended Jan.
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