Lululemon shares plunge following disappointing earnings and lowered guidance

Lululemon Athletica Inc. shares fell 17% following a disappointing second-quarter earnings report, leading the company to slash its full-year revenue guidance for the fourth time since last June.

The company now expects annual revenue to fall between $10.35 billion and $10.5 billion, down from previous estimates of $11 billion to $11.15 billion. Second-quarter revenue declined 4% year-over-year to $2.42 billion, missing consensus estimates. While international revenue saw a 4% increase, Americas revenue dropped 8%, and same-store sales fell 12%.

Management cited several headwinds, including increased competition, brand deterioration, weak responses to new product launches, and negative social media commentary. Technical analysis indicates the stock remains in a bearish downtrend, with the 50-week simple moving average acting as significant resistance as the price tests the $100 level.