Lululemon missed Q2 sales expectations due to product launch issues, but beat earnings estimates.

From CNBC: 2024-08-29 16:09:36

Lululemon missed Q2 sales expectations after a product launch misstep and slow growth in the Americas. Full-year revenue guidance is reduced to $10.38-$10.48 billion, with EPS expected at $13.95-$14.15. Q2 earnings of $3.15 per share beat estimates of $2.93, but shares fell 10% in after-hours trading.

Sales for the quarter were $2.37 billion, up 7% from the previous year. Comparable sales growth was only 2%, missing estimates of 5.9%. A leggings launch was pulled due to complaints about a poor fit, adding to the company’s challenges with assortment issues.

Lululemon is experiencing a slowdown in the Americas with only 1% sales growth. However, international sales grew by 29%, particularly in the Chinese market where the company is focusing on expansion.



Read more at CNBC:: Lululemon (LULU) earnings Q2 2024