By Canadian Press

Lululemon shares sink 17% after retailer notes ‘slowdown’ in U.S. business

Mar 22, 2024 | 9:45 AM

VANCOUVER — Lululemon Athletica Inc.’s stock dropped roughly 17 per cent in Friday morning trading and remained down into the afternoon as the market reacted to financial results released the day before.

The Vancouver-based athletic apparel retailer’s fourth quarter brought US$669.5 million in earnings, up from US$119.8 million a year earlier.

Despite the increase, executives said the period ended Jan. 28 was marked by softness in the U.S. market.

The company also saw an increase in younger guests shopping at Lululemon, resulting in more demand for smaller sizes and a wider range of colours.

But CEO Calvin McDonald told analysts on a conference call that the company didn’t have enough product to keep up with the demand.

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He says the company will look further into how its product assortment and strategies could better satisfy the younger demographic.

This report by The Canadian Press was first published March 22, 2024.

The Canadian Press