Adds background, fourth-quarter earnings forecast
Adds background, fourth-quarter earnings forecast
Dec 11 (Reuters) – Lululemon Athletica Inc LULU.O forecast income for the all-important trip quarter largely beneath analysts’ expectations on Wednesday, sending the apparel maker’s shares down 5% in extended shopping for and promoting.
The company has been offering heavier reductions on its apparel and gear as rivals inside the athleisure home heats up with producers akin to Sweden’s H&M HMb.ST offering comparable merchandise at cheaper prices, together with pressure from sportswear chief Nike Inc NKE.N.
Lululemon had 46% of its apparel on sale on its U.S. web page all through the third quarter, in distinction with ultimate 12 months’s 39%, in accordance with brokerage UBS. Morgan Stanley’s low value tracker moreover found that the company’s mark-down ranges climbed in September.
Lululemon expects to earn between $2.10 and $2.13 per share inside the fourth quarter. Analysts on widespread had anticipated the company to earn $2.13 per share.
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