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.
By Lindsey Rupp; editors: Nick Turner and Kevin Orland.