Lululemon plunges to eight-year low after annual outlook cut, CEO transition concerns
LULU•Brokerages lower price targets
At least 12 brokerages cut LULU's price target after the results.
Dana Telsey, analyst with Telsey Advisory Group, said product launches in North America, its biggest market, were not as successful as planned while China growth also slowed.
Oppenheimer said merchandising and marketing missteps, rather than just macro weakness, are driving the company's worsening performance and investors should wait for incoming CEO O'Neill's strategy.
Shares fall after forecast cut
Shares of athletic wear maker Lululemon Athletica fell as much as 19.5% to an over eight-year low of $97.99 after the company slashed its full-year forecasts again on Thursday as demand weakened in North America and China, its two largest markets.
The stock was down about 41% year to date, as of the last close.
Quarterly revenue misses estimates
Lululemon reported second-quarter revenue of $2.42 billion, missing estimates of $2.46 billion, according to data compiled by LSEG.
