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.
Lululemon Athletica Inc forecast annual sales and profit above Wall Street estimates on Tuesday, betting that demand for its pricier yoga wear and athleisure clothing would hold strong even as inflation drags consumer spending.
Shares of the company rose 3 percent in extended trading after its holiday-quarter sales also beat market expectations.
Even as stubbornly high prices of essential goods force customers to cut down on discretionary purchases such as apparel, wealthier shoppers are still spending on Lululemon’s tops, yoga pants and shorts, bolstering traffic both online and in stores.
While Lululemon has offered more discounts to clear excess inventories, a move that has squeezed margins, analysts have noted that the company’s top-selling products and core categories are still selling at full price.
The company said it expects fiscal 2023 revenue between $9.30 billion and $9.41 billion, compared with analysts’ average estimate of $9.14 billion, according to Refinitiv IBES data.
Lululemon expects full-year profit in the range of $11.50 to $11.72 per share, compared with analysts’ estimate of $11.26 per share.
By Deborah Sophia in Bengaluru; Editor Shilpi Majumdar
Learn more:
Lululemon Tumbles After Lowering Profitability Forecast
Lululemon Athletica Inc. shares tumbled after the maker of fitness wear lowered its guidance for gross margin, stoking fears about profitability for a second-straight quarter.
Rent the Runway and Stitch Fix will give updates on their turnaround efforts. That, plus what else is in store for the coming week.
Krishna Nikhil has stepped down for family reasons after just over 18 months at the helm of eco-innovation brand, the company said.
The luggage and lifestyle brand is expanding its product and marketing strategies while launching collaborations and pop-up stores as its founder, Shay Mitchell, eyes expansion and profitability after five years in business. BoF learns more.
Richemont, owner of jeweller Cartier, said on Wednesday it would not inject any cash into online luxury retailer Farfetch, following a report that the latter was exploring going private.