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.
Designer brands including Gucci and Anya Hindmarch have been left millions of pounds out of pocket and some customers will not get refunds after the online fashion site collapsed owing more than £210m last month.
Antitrust enforcers said Tapestry’s acquisition of Capri would raise prices on handbags and accessories in the affordable luxury sector, harming consumers.
As a push to maximise sales of its popular Samba model starts to weigh on its desirability, the German sportswear giant is betting on other retro sneaker styles to tap surging demand for the 1980s ‘Terrace’ look. But fashion cycles come and go, cautions Andrea Felsted.
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.