The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
NEW YORK, United States — Lululemon Athletica Inc. plummeted as much as 18 percent in late trading after the yogawear company's forecast missed estimates, renewing concern that demand for athletic gear is wavering.
The company expects earnings of $2.26 to $2.36 a share this year, well below the $2.56 projected by analysts. Its revenue forecast also came in light of predictions.
Chief executive officer Laurent Potdevin cited a "slow start" to 2017, suggesting that sales have been more sluggish than expected. The Vancouver-based company is trying to overcome an industrywide discounting frenzy and mounting competition in athletic apparel.
The stock declined as low as $54.50 in late trading after the results were released. Lululemon had gained 2 percent this year through the close of trading Wednesday.
Fast-growing start-ups like Hettas, Saysh and Moolah Kicks created sneakers designed specifically for active women. The sportswear giants are watching closely.
The companies agreed to cap credit-card swipe fees in one of the most significant antitrust settlements ever, following a legal fight that spanned almost two decades.
In an era of austerity on Wall Street, apparel businesses are more likely to be valued on their profits rather than sales, which usually means lower payouts for founders and investors. That is, if they can find a buyer in the first place.
The fast fashion giant occupies a shrinking middle ground between Shein and Zara. New CEO Daniel Ervér can lay out the path forward when the company reports quarterly results this week.