1. Lululemon beat earnings but issued disappointing 2025 guidance. 2. Shares fell approximately 6% in after-hours trading. 3. First-quarter revenue expectations miss Wall Street forecasts. 4. Comparable sales grew 3% year-over-year, lower than expectations. 5. International sales rose 20%, but Americas remained flat.
Despite beating earnings, disappointing guidance and missed sales targets caused a significant drop. Historical patterns show underperformance after guidance misses can lead to prolonged sell-offs.
Earnings and guidance play a critical role in Lululemon's stock performance. Disappointments in these areas signal potential for investor caution.
Immediate uncertainty from guidance likely impacts LULU's stock within the next few months. Past earnings misses often influence market sentiment quickly.