(Reuters) -Lululemon Athletica forecast annual revenue and profit below estimates on Thursday, as the lack of newer styles has been pushing customers to look for products from competitors such as Alo Yoga and Vuori.
The company’s shares, which have fallen 10% so far this year, fell about 8.1% in extended trading.
Lululemon’s efforts to refresh its product lineup have been falling short of keeping up with rising competition from other brands, whose newer styles are more appealing to consumers.
After struggling to resonate with customers for a while, the Canada-based company has introduced products, including Define cropped jackets and Align tank tops, to bring in consumers, especially younger people, who often are on the hunt for trendier items.
The company now expects its fiscal 2025 revenue to be between $11.150 billion and $11.300 billion, compared with the analysts’ average estimate of $11.31 billion, according to data compiled by LSEG.
Lululemon also expects annual diluted earnings per share of $14.95 to $15.15, compared with the average analysts’ estimate of $15.30 per share.
(Reporting by Neil J Kanatt and Anuja Bharat Mistry in Bengaluru; Editing by Alan Barona)
