
Lululemon Stumbles: Weak Guidance Raises Red Flags
📉 Lululemon issued weaker-than-expected guidance for Q1 2025, projecting only 5-7% growth, a significant slowdown from the accustomed rate of over 10%, disappointing analysts.
😟 CEO Calvin McDonald highlighted survey findings indicating consumers are spending less due to economic and inflation concerns, leading to reduced foot traffic in U.S. stores, mirroring trends seen at other retailers like Nike.
📦 The company reported a 9% increase in inventories, adding another layer of concern for investors despite beating Q4 earnings and revenue expectations.

Lululemon’s Earnings: Growth Amidst Challenges
📈 Lululemon reported a 13% increase in revenue for the last quarter, showcasing resilience in a competitive market.
🛍️ The company expanded its store count by 2.5% and achieved a 3% growth in comparable store sales, indicating steady operational growth.
💡 Despite a slowdown in growth projections, Lululemon's valuation remains competitive, with a forward P/E ratio of 23, compared to Nike's higher valuation.