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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