The stock of Canada’s Lululemon Athletica (LULU) is down 20% after the retailer delivered financial results and guidance that fell short of Wall Street’s expectations.
The Vancouver-based company posted earnings per share (EPS) of $2.92 U.S., which topped analysts’ consensus forecast of $1.79 U.S.
However, revenue of $2.42 billion U.S. came in below the $2.46 billion U.S. that had been estimated on Wall Street.
Lululemon’s sales were down 4% from a year earlier, while same-store sales declined 9% year-over-year during the second quarter.
Additionally, the company’s earnings figure included $0.86 U.S. a share in tariff refunds received during the quarter.
The company known for its yoga pants and other workout gear has struggled in recent years with declining sales, tariffs, and product misfires.
Lululemon has also been engaged in a public proxy battle with company founder Chip Wilson, who has called for the replacement of the CEO and board of directors.
In terms of guidance, Lululemon said that for the current quarter, it expects revenue of $2.29 billion U.S. to $2.32 billion U.S., which would represent a decline of 10% to 11% year-over-year.
Earnings per share are projected at $0.93 U.S. to $0.98 U.S. for Q3. That new outlook includes a continued boost from tariff refunds, Lululemon said in its earnings release.
This was Lululemon’s final quarter before new CEO Heidi O’Neill takes the helm of the company on Sept. 8, promising improvements at the retailer.
Prior to today (Sept. 4), LULU stock had declined 40% over the past 12 months to trade at $121.77 U.S. per share.
