""I now believe we have let our product life cycles run too long within many of our core categories, particularly in lounge and social," McDonald said. "We have become too predictable within our casual offerings and missed opportunities to create new trends." McDonald added: "We did not have the appropriate balance between existing and new styles across our casual offerings, and the guests stopped responding as they had in the past.""
""Consumers are spending less on apparel overall, spending less in performance active wear, and are being more selective in their purchases, seeking out truly new styles," he said."
Lululemon reported second-quarter net revenue growth of 7% to $2.5 billion while profit fell 5.6% to $370 million. CEO Calvin McDonald said product life cycles in key categories, especially lounge and social, have run too long and casual offerings became predictable, causing customers to stop responding. Consumers are spending less on apparel and seeking truly new styles. U.S. tariffs and the removal of the de minimis provision pressured guidance, with tariffs expected to reduce full-year profits by $240 million. Shares dropped more than 15% after hours and are down over 46% year to date.
Read at Business Insider
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