"While guests were excited by the fabric, the design didn't meet their expectations," CEO Calvin McDonald said in the earnings call. "Listening to our guests is central to who we are and how we grow our brand, and we took the right step of pausing on sales and look forward to reintroducing the fabric in the future."
McDonald admitted Lululemon failed to fully capture the U.S. market, failing to provide enough colors and sizes in its inventory, and providing an array of narrow leggings in a time when wider-legged, baggy pants and shorts have come into fashion.
While earnings topped views, revenue grew 7% to $2.37 billion last quarter, missing Wall Street's expected $2.41 billion, with comparable sales in the U.S. down 3%.
Lululemon's weaker-than-expected quarter wasn't helped by decreasing interest in leggings overall. As racket sports and running gain popularity, so, too, do shorts and matching sets.
[
Collection
]
[
|
...
]