Consumer
Lululemon’s Sales Growth Is Slowing Ahead of the Holidays
- Yogawear maker’s fourth-quarter outlook misses estimates
- Stock’s 45% gain this year had elevated investor expectations
Photographer: Patrick T. Fallon/Bloomberg
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Lululemon Athletica Inc.’s fourth-quarter revenue guidance trailed Wall Street estimates, a rare miss for the retailer whose performance routinely exceeds investor expectations.
Sales growth at the activewear company, while still robust compared with most peers, is slowing as higher-income shoppers spend more on things like travel and entertainment rather than apparel. Lululemon said Thursday that revenue in the holiday quarter is expected to be up 13% to 14% over last year, down from 19% growth seen in the three-month period that just ended.