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Lululemon collapses 16% after earnings warn about a 'slow start' to the year

Mar 30, 2017, 01:53 IST

Facebook/Lululemon

Lululemon shares fell by as much as 16% in after-hours trading on Wednesday after the company reported earnings and said it had a "slow start" to the year.

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In a statement, Lululemon said it expects sales at stores open for at least one year to decline in the first quarter in the "low-single digits" on a constant dollar basis.

In the fourth-quarter, adjusted earnings per share (EPS) was $1, one cent short of the consensus forecast according to Bloomberg. Net revenue increased 14% year-on-year to $2.3 billion.

Same-store sales rose by 6%, topping analysts' forecast for 5.3%.

"Although we've had a slow start to 2017, our teams are passionately committed to delivering on our robust plans across product innovation, digital, North America and international as we realize our ambitious vision for the future," said CEO Laurent Potdevin in the earnings statement.

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Lululemon shares gained 9% in the year through Wednesday's market close.

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