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.
The rental platform saw its stock soar last week after predicting it would hit a key profitability metric this year. A new marketing push and more robust inventory are the key to unlocking elusive growth, CEO Jenn Hyman tells BoF.
Nordstrom, Tod’s and L’Occitane are all pushing for privatisation. Ultimately, their fate will not be determined by whether they are under the scrutiny of public investors.
The company is in talks with potential investors after filing for insolvency in Europe and closing its US stores. Insiders say efforts to restore the brand to its 1980s heyday clashed with its owners’ desire to quickly juice sales in order to attract a buyer.
The humble trainer, once the reserve of football fans, Britpop kids and the odd skateboarder, has become as ubiquitous as battered Converse All Stars in the 00s indie sleaze years.