Lululemon Lowers Forecast After Sales Miss

Lululemon Athletica missed revenue expectations for the first time in over two years and revised its full-year guidance downward. The company faced a challenging quarter due to changing consumer needs, particularly in the U.S. market, and issues with its Breezethrough yoga pants, which were pulled from shelves soon after launch due to design flaws. Despite these setbacks, the company's earnings beat expectations, driven by strong international sales, which grew by 29%. CEO Calvin McDonald acknowledged the need for more variety and 'newness' in the women's wear segment to improve conversion rates. The firm's quarterly revenue rose by 7% year over year to $2.37 billion, but this fell short of Wall Street's forecast of $2.4 billion. Lululemon aims to rectify its product mix issues and expects to return to historical levels of newness by spring 2025.