Lululemon 1Q Guidance Doesn’t Fit With Investor Expectations

Athletic-apparel company Lululemon calls for 1Q revenue between $2.18 billion and $2.2 billion, below Wall Street’s estimates of $2.26 billion. CEO Calvin McDonald says on an investor call there’s been a shift in US consumer behavior lately and that the company is navigating a slower start to the year. CFO Meghan Frank adds that the slowdown in the US is broad-based but notes Lululemon has identified opportunities in product, specifically in color and women’s sizing. Shares slide 15% to $408.71 in early trading.

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