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Lululemon Disappoints In Q4, Analysts Say Brand Is 'Strong But Overstretched' - Lululemon Athletica (NASDAQ:LULU)

On Friday, U.S. Stock indexes slipped, with the S&P 500 down 0.5% in morning trading at 9:55 a.m. Eastern time, potentially marking its fifth losing week in the last six, while the Dow Jones Industrial Average decreased by 263 points and the Nasdaq composite fell 0.7%.
The market downturn was influenced by a morning report that raised concerns about potentially discouraging updates on inflation and U.S. Household spending, along with an underlying measure of inflation being slightly worse than economists anticipated.
Lululemon Athletica tumbled 13.3% despite reporting a stronger profit for the latest quarter than analysts expected, and CEO Calvin McDonald stated that 'consumers are spending less due to increased concerns about inflation and the economy'.
Lululemon's Q4 net revenue rose 12.7% year-over-year to $3.6 billion, which included an extra week in 2024, and net income increased 11.8% to $748.4 million, with gross margins expanding to 60.4%, exceeding market expectations.
Despite exceeding Q4 expectations, Lululemon's shares declined almost 15% on Friday after the apparel company released an upbeat fourth-quarter report, overshadowed by disappointing full-year guidance, with analysts reducing price targets and expressing concerns about long-term domestic revenue sizing, although the company plans to open 40 to 45 new stores in 2025 and is focused on brand awareness.

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Esquire

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Lululemon vs. Vuori: We Put the Brands’ Best Gear to the Test

We compared some of Vuori and Lululemon's best-selling activewear and athleisure products to see how they stacked up against one another.

2 days ago·United States

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Benzinga

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Lululemon Disappoints In Q4, Analysts Say Brand Is 'Strong But Overstretched' - Lululemon Athletica (NASDAQ:LULU)

Lululemon (LULU) beat Q4 expectations but share price dropped due to soft guidance. Analysts have mixed views, with some concerned about brand growth.

3 days ago·New York, United States

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CNBC

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The bear and bull case for Lululemon

Jefferies' Randy Konik and Needham's Tom Nikic, join 'Squawk on the Street' to offer the bear and bull cases for Lululemon.

3 days ago·United States

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Investor's Business Daily

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Dow Jones Futures Fall On Hot Fed Inflation Gauge; Lululemon Plunges On Earnings

Dow Jones futures dropped Friday on the Federal Reserve's hotter-than-expected favored inflation indicator. Lululemon plunged on earnings. The post Dow Jones Futures Fall On Hot Fed Inflation Gauge; Lululemon Plunges On Earnings appeared first on Investor's Business Daily.

3 days ago

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retaildive.com

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Lululemon leans on newness to lure reluctant US customers

This year the brand plans to expand its footprint by opening stores and enlarging existing locations, and will add new markets abroad.

3 days ago

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breakinglatest.news

Lululemon's 2026 Targets Delayed: Challenges in the U.S. Market by 2024 - Breaking Latest News

Is Lululemon’s Growth Strategy On Track? Lululemon, the athleisure giant, has delivered an impressive fourth quarter and full-year earnings report, with results exceeding expectations. The brand achieved $10.6 billion in annual sales for the first time, marking a 10% growth year-over-year. However, tempered guidance spooked Wall Street, resulting in a 14% plunge in its shares. The question on investors and analysts’ minds: Is Lululemon’s ambitio…

2 days ago

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