Lululemon Stock Falls as Financial Guidance Disappoints. Consumers Are Cautious, CEO Says
Lululemon Athletica's fourth-quarter earnings were higher than anticipated, but the stock was falling Thursday after management's financial guidance for the year fell short of expectations.The activewear company reported earnings of $6.14 a share for the quarter ended Feb. 2. Analysts expected $5.85 a share, according to FactSet.Revenue rose 13% to $3.6 billion, in line with projections for $3.58 billion.Still, the shares were 11% lower at $303.42 in the after-hours trading session. The company issued updated guidance for the holiday quarter in January, so investors focused on management's forecasts for fiscal 2025, which were less upbeat than expected.Earnings per share will be between $14.95 to $15.15, the company said. The range's midpoint, $15.05, is well below the $15.37 Wall Street had penciled in for the year. The guidance includes a 0.2 percentage point impact from tariffs on Chinese and Mexican imports, executives said. Unfavorable foreign exchange rates will also weigh on pro