Lululemon collapses 16% after earnings warn about a 'slow start' to the year (LULU)

pulse

March 29, 2017 9:27 PM

Lululemon said it expects sales at stores open for at least one year to decline in the first quarter of fiscal 2017

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Lululemon shares fell by as much as 16% in after-hours trading on Wednesday after the company reported earnings and said it had a "slow start" to the year.

In the earnings release, Lululemon said it expects sales at stores open for at least one year to decline in the first quarter in the "low-single digits" on a constant dollar basis.

The company continues to face strong competition as other brands like Under Armour and Amazon jump on the trend of designing workout clothes that are also suitable for everyday wear.

In the fourth-quarter, adjusted earnings per share (EPS) were $1, one cent short of the consensus forecast according to Bloomberg. Net revenue increased 14% year-on-year to $2.3 billion.

Same-store sales rose by 6%, topping analysts' forecast for 5.3% growth.

North America

Lululemon shares had gained 9% in the year through Wednesday's market close.

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