Breaking: Lululemon Shares Dip 12.80% In Friday's Premarket

lululemon athletica inc., (NASDAQ: LULU) together with its subsidiaries, designs, distributes, and retails technical athletic apparel, footwear, and accessories for women and men under the lululemon brand in the United States, Canada, Mexico, China Mainland, Hong Kong, Taiwan, Macau, and internationally saw it's shares tanked nearly 15% in Friday's premarket trading after reporting earnings and revenue beats for its fourth-quarter earnings on Thursday.

Lululemon beat Wall Street expectations for fiscal fourth-quarter earnings and revenue, but issued 2025 guidance that disappointed analysts.

On an Thursday earnings call, CEO Calvin McDonald said the athleticwear company conducted a survey earlier this month that found that consumers are spending less due to economic and inflation concerns, resulting in lower U.S. traffic at Lululemon and industry peers.

McDonald said. “There continues to be considerable uncertainty driven by macro and geopolitical circumstances. That being said, we remain focused on what we can control.”

In light of that, Shares of the apparel company fell more than 10% in extended trading on Thursday and extended the loss to premarket session dipping 12.80%.


Here’s how the company did compared with what Wall Street was expecting for the quarter ended Feb. 2, based on a survey of analysts by LSEG:

Earnings per share: $6.14 vs. $5.85 expected
Revenue: $3.61 billion vs. $3.57 billion expected
Fourth-quarter revenue rose from $3.21 billion during the same period in 2023. Full-year 2024 revenue came in at $10.59 billion, up from $9.62 billion in 2023.

Lululemon’s fiscal 2024 contained 53 weeks, one week longer than its fiscal 2023. Excluding the 53rd week, fourth-quarter and full-year revenue both rose 8% year over year for 2024.

Lululemon expects first-quarter revenue to total $2.34 billion to $2.36 billion, while Wall Street analysts were expecting $2.39 billion, according to LSEG. The retailer anticipates it will post full-year fiscal 2025 revenue of $11.15 billion to $11.30 billion, compared to the analyst consensus estimate of $11.31 billion.

For the first quarter, the company expects to post earnings per share in the range of $2.53 to $2.58, missing Wall Street’s expectation of $2.72, according to LSEG. Full-year earnings per share guidance came in at $14.95 to $15.15 per share, while analysts anticipated $15.31.

Technically, shares of Lululemon (LULU) will form a gap down pattern which is a bearish scenario should market session open. However, the RSI at 59 is strong enough to hold the bears in the 23.6% Fibonacci retracement point a level serving as support point for LULU should selling pressure increase.

Analyst Forecast
According to 27 analysts, the average rating for LULU stock is "Buy." The 12-month stock price forecast is $394.19, which is an increase of 15.42% from the latest price.