1. LULU stock fell 17% due to reduced full-year guidance. 2. U.S. same-store sales dropped 4%, offset by international growth. 3. LULU's P/S ratio is 1.8, below the 5-year average of 6.9. 4. Growing domestic softness raises investor caution despite international strength.
The significant drop in price following guidance cuts indicates market concern. Historical precedents, such as other retail stocks facing similar issues, saw prolonged declines.
The guidance cut directly influences investor sentiment and future expectations, marking it significant. Stocks with similar outlooks have historically faced considerable volatility.
The immediate reaction to guidance cuts typically affects stock prices in the short-term. Previous examples show that poor guidance can take several weeks to reflect in stock recovery.