Lululemon Athletica Inc. (NASDAQ: LULU) reported a revenue of $2.37 billion in its first quarter of 2023, a 7% increase from the previous year, but experienced a comparable sales growth slowdown to just 1%. The company’s shares have fallen 48% from the peak in late 2023, amid concerns regarding valuation, slowing growth, and economic conditions.
For the full year, Lululemon maintained its revenue guidance at $11.15 billion to $11.3 billion, but cut its earnings-per-share forecast from <$strong>14.95-$15.15 to $14.58-$14.78. In China, the company saw a revenue increase of 21% with 7% comparable sales growth, contributing 13% to total revenue last year.
Lululemon currently operates 154 stores in China, expecting to exceed its initial goal of 200 stores. The company faces ongoing challenges from tariffs, affecting operating margins, which are projected to decline by 160 basis points.
