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Lululemon Athletica (LULU) Stock Drops After Announcing Preliminary Revenue Figures

Monday, January 10, 2022 10:01 AM | Kyle Depontes

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Lululemon Athletica (LULU) Stock Drops After Announcing Preliminary Revenue Figures

What is going on with LULU?

Lululemon Athletica Inc. (LULU) stock fell today after the athletic apparel company updated its revenue and guidance numbers ahead of the ICR Conference, which is taking place virtually from Jan. 10-12.

The company announced that, for the fourth quarter of fiscal 2021, it now expects its net revenue to be toward the low end of its range of $2.125 billion to $2.165 billion.

Additionally, it expects diluted EPS and adjusted diluted EPS to be toward the low end of its ranges of $3.24 to $3.31 and $3.25 to $3.32, respectively.

Shares of LULU declined 3.6% to $341.56 as of Monday at 9:43am.

What does this mean for Lululemon Athletica?

Lululemon's adjustment of its earnings numbers suggest the company did not have the holiday season that it hoped for.

Based on preliminary numbers, the Omicron variant significantly affected the company's supply chains and contributed to delays and shortages in key locations across the country.

Calvin McDonald, LULU CEO, commented, “We are closing out a strong 2021 in the coming weeks, and we’re pleased with how lululemon has delivered over the course of the year."

"We started the holiday season in a strong position but have since experienced several consequences of the Omicron variant, including increased capacity constraints, more limited staff availability, and reduced operating hours in certain locations.”

Members of the management team will be meeting virtually with analysts and investors at the ICR Conference on January 10-12, 2022.

Short-Term Technical Rank - 70

LULU has a Short-Term Technical Rank of 70. Find out what this means to you and get the rest of the rankings on LULU!

Lululemon Athletica Inc. designs, distributes, and markets athletic apparel and accessories for women, men, and girls. Lululemon offers pants, shorts, tops, and jackets for both leisure and athletic activities such as yoga and running. The company also sells fitness accessories, such as bags, yoga mats, and equipment. Lululemon sells its products through more than 550 company-owned stores in 17 countries, e-commerce, outlets, and wholesale accounts. The company was founded in 1998 and is based in Vancouver, Canada.

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