Home.forex news reportLululemon (LULU) earnings Q2 2024

Lululemon (LULU) earnings Q2 2024

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Signage at a Lululemon store in New York, US, on Thursday, Aug. 22, 2024. Lululemon Athletica Inc. is scheduled to release earnings figures on August 29. 

Yuki Iwamura | Bloomberg | Getty Images

Lululemon missed Wall Street’s fiscal second-quarter sales expectations and lowered its guidance Thursday after it botched a highly anticipated product launch and growth slowed in the Americas. 

The company now expects full year net revenue to be between $10.38 and $10.48 billion, down from a previous range of between $10.7 billion and $10.8 billion. Lululemon anticipates earnings per share will be in a range of $13.95 to $14.15, down from previous guidance of $14.27 to $14.47.

Here’s how company did compared with what Wall Street was anticipating, based on a survey of analysts by LSEG, formerly known as Refinitiv:

  • Earnings per share: $3.15 vs. $2.93 expected
  • Revenue: $2.37 billion vs. $2.41 billion expected

Shares dropped as much as 10% in extended trading.

The company’s reported net income for the three-month period that ended July 28 was $393 million, or $3.15 per share, compared with $342 million, or $2.68 per share, a year earlier. 

Sales rose to $2.37 billion, up about 7% from $2.21 billion a year earlier. Beyond total sales, Lululemon also missed expectations on comparable sales, which grew 2%, well behind estimates of 5.9%, according to StreetAccount.

During the quarter, Lululemon pulled its Breezethrough leggings, launched in early July, after it received a wave of complaints about the product’s unflattering fit. The botched launch came after the company struggled with a number of other self-inflicted issues with its assortment, including not having the right colors and sizes that its core customers desired.

The flops have contributed to a slowdown in the company’s largest market, the Americas. During the quarter, sales grew only 1% in the region.

Sales jumped 29% in Lululemon’s international markets as the company looks to China for growth.



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