Lululemon shares pop 12% despite lackluster earnings report and guidance

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Lululemon is still seeing sales grow in North America but at a far slower pace than the past, raising concerns from investors about its future growth potential.

Lululemon beat Wall Street's earnings and revenue estimates, but issued weak second-quarter guidance as it contends with a slowdown in the Americas, its largest market.

The athletic apparel retailer handily beat Wall Street's earnings estimates, but only narrowly topped revenue expectations. Lululemon's full fiscal year guidance suggests the company is betting conditions will improve in the back half of the year. "We are pleased by the progress we are making to optimize our U.S. product assortment," said McDonald. "Looking ahead, we continue to have a significant runway for growth and are confident in our team's ability to powerfully deliver."

Lululemon is still growing in the Americas, but at a much slower pace than last year. During the first quarter of this year, sales in the Americas increased 3%, versus a 17% jump in the year-ago period. Comparable sales were flat from last year.

 

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Lululemon shares pop 12% despite lackluster earnings and guidanceLululemon is still seeing sales grow in North America but at a far slower pace than the past, raising concerns from investors about its future growth potential.
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