Overview
- Lululemon reported soft FQ1 results with $2.5 billion in revenue, 1% comparable-sales growth, and net income down about 38% to $195 million.
- The company lowered full-year guidance to $11.0 billion–$11.15 billion in revenue and $10.95–$11.15 in diluted EPS, prompting a sharp drop in the share price.
- Interim co‑CEOs Meghan Frank and André Maestrini pointed to a strong international showing, notably mainland China, while North American sales weakened.
- Management repurchased 2.2 million shares for $358.3 million and expanded the store base to 816 locations as it pursues returns to growth.
- Analysts and independent valuers are split between bullish DCF cases that see large upside and cautionary views that the stock could remain a value trap until execution and margin pressure improve.