Lululemon Plunges After CEO Blames Bland Products for Slow Sales
- Annual earnings outlook comes in well below projections
- Fickle customers are quick to defect from brand, analyst says
Lululemon Shares Plummet as Forecast Disappoints
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Lululemon Athletica Inc. plummeted the most in more than eight years after the yogawear company offered a bleak forecast for the year, sparking concern that product misfires are causing customers to flee the brand.
The retailer said late Wednesday that earnings will be $2.26 to $2.36 a share this year -- well below the $2.56 projected by analysts. Lululemon’s revenue forecast also came in light of predictions.