A warning about waning consumer confidence has hit shares in Lululemon, despite a strong set of results from the activewear company.
Lululemon stock recently stood 13% lower at about $296.
The shares haven’t closed below $300 since late October.
The company’s chief executive, Calvin McDonald, said Thursday it had seen slower traffic in the first quarter, mirroring broader industry trends.
“Consumers are spending less due to increased concerns about inflation and the economy,” McDonald said.
Shares of Lululemon were trading down about 6% in early after-hours trading soon after the fourth-quarter report was released. While the company beat analyst estimates across the board in the fourth quarter, its outlook for 2025 was not well received by the market. The stock has been volatile over the past few years, with little change compared to three years ago. With a mixed bag of an earnings report, the stock could continue to be stuck for the time being.
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