Yoga retailer Lululemon sees shares slump 17 per cent after noting a "slow start" to the year

 
Rebecca Smith
The retailer provided a soft outlook
The retailer provided a soft outlook (Source: Getty)

Lululemon's shares slumped nearly 18 per cent yesterday in after-hours trading, as it provided a soft forecast for the current three-month period.

The maker of yoga clothing and other athletic gear admitted it had "a slow start" to the year, which affected the outlook. It said it expects revenue in the range of $510m-$515m in the fiscal first quarter, and total comparable sales to fall in the low-single digit range. It expects earnings of 25 to 27 cents per share.

Analysts had been expecting earnings of 39 cents on revenue of $552m.

Read more: Lululemon shares hit by second quarter results and cautious forecasts

Lululemon chief executive Laurent Potdevin said:

Although we've had a slow start to 2017, our teams are passionately committed to delivering on our robust plans across product innovation, digital, North America and international as we realise our ambitious vision for the future.

The retailer pointed to fewer visitors in stores as part of the cause, as well as fewer people making it through the check-out process online too.

Read more: Online retail sales maintains double-digit growth

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