Investors Bolt From Lululemon As Momentum Comes To A Screeching Halt
Shares of Luluemon have cratered as quickly as its sales momentum. The Canadian retailer’s stock tumbled more than 23 percent Thursday, hours after the athletic wear maker warned its fiscal first quarter has gotten off to a slow start amid a sea of drab clothes. Specifically, weak store traffic and fewer online purchases are setting the chain up for its first quarterly comparable sales decline since the recession. The news was an abrupt pivot from its fourth-quarter performance, when both sales and earnings posted double-digit gains. At least four analysts on Thursday downgraded the company’s shares, citing concerns about its about-face. Lululemon’s warning added to concerns about a slowdown in the athletic apparel market, which has also been seen in recent results from Under Armour and Nike. The company’s shares were on pace for their second worst day of trading in history. Read more at CNBC.
