Lululemon’s run of success may finally be coming to an end

Bikram backlash. Yoga patent lawsuits. Now, Lululemon’s losing stock value.

The Kali Yuga, for sure, right?

After Lululemon’s founder announced this past week he was stepping down as chairman, things haven’t taken a turn for the better for the yoga clothing company.

Check out this report from Friday:

Lululemon Athletica Inc.’s shares fell for a second day on Friday following a disappointing forecast from the yoga clothing company.

The retailer’s leaders said Thursday that its image problems are starting to take a toll on its business. The company also said that it expects a key sales figure to be flat in the next quarter and trimmed its outlook for the year. Lululemon also noted that customer traffic in its stores slowed in November.


Lululemon also said that it now expects earnings for the year between $1.94 and $1.96 on revenue around $1.61 billion. That’s down from its prior forecast of $1.94 to $1.97 per share on revenue between nearly $1.63 billion and $1.64 billion.

Credit Suisse analyst Christian Buss lowered his rating on the company to “Neutral” from “Outperform” and dropped his target price to $59 from $78. He said in a research note that the weak forecast suggests demand is weakening for the company’s products. He said the company’s missteps, along with the increase of lower-price knockoffs, are hurting demand.

You think?

Posted by Steve

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Two Ashtangis write about their practice and their teachers.

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