Lululemon Athletica shares fall due to weak Earnings
2023.01.09 07:13
Budrigannews.com – On Monday, Lululemon Athletica Inc. said that the apparel company expects gross margins to drop in the holiday quarter as a result of higher costs and lower consumer spending as a result of persistently high inflation.
In premarket trading, the yoga pant manufacturer’s shares fell more than 10% to $295.21.
The company stated that it anticipates a 90-110 basis point decrease in gross margin in the fourth quarter, as opposed to its previous expectation of a 10-20 basis point increase.
However, in contrast to its previous range of $2.61 billion to $2.66 billion, Lululemon stated that it anticipates net revenue in the range of $2.66 billion to $2.70 billion for the fourth quarter.
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Additionally, it anticipates diluted earnings per share to be between $4.22 and $4.27, as opposed to its earlier estimate of $4.20 to $4.30.
