Lululemon slides as US sales weaken, outlook lowered
BUZZ-Lululemon slides as US sales weaken, outlook lowered
** Shares of athleisure brand Lululemon LULU.O down 14.4% at $110.48 in premarket trading
** Co on Thursday lowered its full-year profit forecast and projected Q2 earnings well below Wall Street expectations, as its products struggled to attract shoppers in its key U.S. market
** Jefferies says the business will likely keep weakening until productivity improves, and that the new CEO needs to carry out a major strategic reset
** Co's incoming CEO Heidi O'Neill is set to take the role in September this year
** Following the results, at least 10 brokerages slashed price target on the stock, according to data compiled by LSEG
** 33 analysts rate the stock "hold" on average; median PT is $165 - data compiled by LSEG
** As of last day's close, stock down ~40% down YTD
(Reporting by Kanishka Ajmera in Bengaluru)
((mail to: Kanishka.Ajmera@thomsonreuters.com))
Recent news on lululemon athletica
See all newsBrief: Lululemon Announces Appointment Of Tara Poseley To Board Of Directors
Press Digest: Canada - October 8
Lululemon puts Nike veteran in charge of product as CEO O'Neill looks to right ship
Brief: Lululemon Announces New Leadership Team Structure To Drive Next Chapter Of Growth
Texas AG Paxton probes Fruit of the Loom, Hanes over potential toxic chemicals in children's underwear