Lululemon shares fell by as considerably as sixteen% in soon after-several hours buying and selling on Wednesday soon after the corporation reported earnings and stated it experienced a “gradual start off” to the 12 months.
Lululemon’s CEO Laurent Potdevin instructed analysts on the earnings contact that the slowness was typically on the net. Poor visible merchandising in shops also harm gross sales at the athleisure-have on corporation, he stated, according to Bloomberg.
In the earnings release, Lululemon stated it expects gross sales at shops open for at least one 12 months to decline in the 1st quarter in the “small-one digits” on a frequent dollar basis.
In the fourth-quarter, modified earnings for every share (EPS) were $1, one cent shorter of the consensus forecast according to Bloomberg. Net earnings increased fourteen% 12 months-on-12 months to $2.3 billion.
Very same-keep gross sales rose by six%, topping analysts’ forecast for 5.3% advancement.
“Despite the fact that we have experienced a gradual start off to 2017, our groups are passionately dedicated to delivering on our strong options throughout solution innovation, digital, North America and worldwide as we comprehend our formidable vision for the long run,” stated Potdevin in the earnings assertion.
Lululemon shares experienced obtained 9% in the 12 months through Wednesday’s industry close.