Lululemon expects moderate growth in the US this year, despite strong results in the fourth quarter, due to inflation and consumer spending.
Lululemon Athletica Inc., the renowned sportswear brand, has projected modest growth in the US market this year, according to its CEO, Calvin McDonald. Despite surpassing expectations in its fourth-quarter results, the company’s shares dropped by 6.2% in after-hours trading, settling at $320.40.
McDonald pointed out that the economy and inflation are impacting consumer spending. Although the brand has revived product innovation, the company anticipates low to mid-single-digit growth in North America, with the US at the lower end and Canada at the higher end.
In the fourth quarter, Lululemon reported an 11.8% increase in net revenue, reaching $748.4 million. Comparable sales grew by 3%, with stable performance in the Americas and a 20% increase in other regions. The company plans to expand its retail space by 10% this year and remains focused on doubling its business by 2026, reaching $12.5 billion.
Despite the challenging economic environment, Lululemon is confident in its ability to maintain a strong foundation and continue attracting consumers with its innovative offerings.
-380x380.webp)
