Lululemon Warns Of Slowing North America Sales As Spending Falters

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Lululemon Warns Of Slowing North America Sales As Spending Falters

Lululemon Athletica forecast annual revenue and profit below expectations on Thursday as demand wanes for the apparel retailer's premium athleisure mainly in the North American region, sending its shares down nearly 11% in extended trading.

In the US, excessive inventory levels at sporting retailers has resulted in lower orders for sportswear and apparel firms, with companies including Adidas and Foot Locker exercising prudence in response to inconsistent consumer spending trends.

Lululemon's first-quarter sales are off to a slow start in North America and the consumer environment in the US has been somewhat challenging, CEO Calvin McDonald said in a post-earnings call. It reported a 9% growth in fourth-quarter North American sales, compared with a 29% rise a year earlier and a 12% gain in the previous quarter.

The company projected fiscal 2024 revenue of between US$ 10.70 billion and US$ 10.80 billion, compared with analysts' estimates of US$ 10.90 billion.