Activewear brand Lululemon has revealed that it was forced to reduce its full-year earnings guidance due to a “dynamic macroenvironment”. Consequently, the company’s shares fell by 23% after the announcement.
In the company’s earnings release, issued late Thursday, Lululemon revealed that its Q1 revenue increased by 7% to $2.4 billion, while its comparable sales rose by 1%.
Lululemon CEO Calvin McDonald told investors, “In the first quarter, we achieved growth across channels, categories, and markets, including the U.S., reflecting the continued strength and agility of our business model. Additionally, guests responded well to the product innovations, newness, and brand activations we delivered around the world.”
For 2025, the Company continues to expect net revenue to be in the range of $11.150 billion to $11.300 billion, representing growth of 5% to 7%, or 7% to 8%.
“As we navigate the dynamic macroenvironment, we intend to leverage our strong financial position and competitive advantages to play offense, while we continue to invest in the growth opportunities in front of us,” McDonald concluded.
Company CFO Meghan Frank stated, “We delivered first quarter revenue growth at the high end of our guidance and are pleased with the start to our second quarter. Looking ahead, we remain focused on our strategy and continue to operate with discipline as we drive the business forward. We are grateful to our teams around the world who are enabling us to deliver these consistent results.”
By CEO NA Editorial Staff
