The athleisure retailer cut full-year revenue guidance to $11 billion-$11.15 billion after Q1 net income fell 38% to $195 million.
Lululemon Athletica reported Q1 revenue of $2.47 billion, up from $2.37 billion a year ago, but rising costs and weaker U.S. sales dragged net income down 38% to $195 million. Earnings per share fell to $1.69 from $2.60 in the same period last year.
The company lowered its full-year revenue forecast to $11 billion-$11.15 billion, a decline of up to 1% from prior guidance, and projected EPS between $10.95 and $11.15. Comparable sales in the U.S. dropped significantly, offsetting growth in China.
Shares fell more than 12% following the announcement, hitting an eight-year low on NASDAQ.