On September 4, Lululemon Athletica fell 18.07% overnight, trading at $99.78/share, after the company reported fiscal Q2 results and issued a sharply reduced full-year outlook.

Lululemon posted Q2 EPS of $2.92, beating the consensus estimate of $1.79, but revenue of $2.416 billion missed the $2.458 billion estimate and declined approximately 4.3% year-over-year, with Americas revenue dropping 8%. The company slashed its full-year revenue guidance to $10.35-$10.50 billion from a prior $11.0-$11.15 billion range, well below the analyst consensus of $11.03 billion. Full-year EPS guidance was cut to $9.48-$9.73 from $10.95-$11.15. Q3 guidance was equally disappointing, with projected EPS of $0.93-$0.98 versus the $2.40 estimate and revenue of $2.29-$2.32 billion versus $2.53 billion expected.

Management flagged that core categories including yoga pants decelerated more than anticipated, and warned North America sales could decline roughly 15% in Q3. The company acknowledged the need for increased seasonal clearance activity to manage inventory amid softer-than-expected demand trends entering the second half.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)