Lululemon cuts full-year outlook after quarterly revenue miss
Lululemon reported second-quarter revenue of $2.42 billion, below estimates, and lowered full-year revenue guidance to $10.35 billion-$10.50 billion from $11 billion-$11.15 billion.
Lululemon Athletica Inc posted second-quarter revenue of $2.42 billion, below the consensus estimate of $2.46 billion, according to Pro. The company said second-quarter earnings were $2.92 per share. Total revenue fell 4% year over year. Americas net revenue declined 8%, while international revenue rose 4%.
Total comparable sales were down 9% year over year. Inventories were down 1% year over year to $1.7 billion. The company said its total store count was 825 at quarter-end after opening nine new company-operated stores during the quarter. Meghan Frank, interim co-CEO and CFO, said the teams remain focused on accelerating growth through product offerings, marketing investments and disciplined expense management.
Lululemon ended the quarter with approximately $1.4 billion in cash and cash. Lululemon expects third-quarter revenue of $2.29 billion to $2.32 billion, compared with estimates of $2.53 billion. It sees third-quarter earnings of 93 cents to 98 cents per share, versus estimates of $2.43 per share. The company reduced its full-year revenue outlook to $10.35 billion to $10.50 billion from $11 billion to $11.15 billion, compared with estimates of $11.04 billion.
It also lowered full-year earnings guidance to $9.48 to $9.73 per share from $10.95 to $11.15 per share, versus estimates of $10.96 per share. Frank said, “While we continue to navigate some challenging dynamics, we are taking a prudent approach with our revised full-year outlook.” Lululemon management will discuss the quarter on an earnings call scheduled for 4:30 p.m. ET. LULU shares were down 16.40% in after-hours trading Thursday at $101.82, according to Pro.