Stretched thin
Lululemon's shares were in downward dog last Friday, plunging by ~16% after the activewear giant forecasted less-than-stellar earnings for the quarter ahead.
The brand, known for outfitting yoga enthusiasts in premium leggings and sports bras, faces a slowdown in its all important North American market. Instead of the 20%+ growth it has been accustomed to, sales are forecast to grow a more modest 9% year-on-year, as fresh faces in the activewear scene, like Alo and Vuori, begin to charm the high-income athleisure-wearing consumers that make up Lululemon’s customer base.
