Why did Lululemon stock fall today? Margins for the holiday quarter disappointed
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Lululemon Athletica (NASDAQ:LULU) fell sharply fell on Monday after the athletic apparel retailer lowered its margin guidance for Q4.
Along with the guidance update, the company made an appearance at the ICR Conference on Monday, during which it is working to align inventory with post-holiday plans, Management continues to expect inventory to be up 60% exiting Q4.
A positive readout from the ICR conference was that SG&A performance offset some of the margin decline. Bank of America analyst Lorraine Hutchinson also noted that core styles were brought in by LULU early to help avoid air freight costs. Following the holiday quarter update, Bank of America kept a Buy rating on LULU and said it continues to see LULU as a best-in-class growth story in a challenging macro backdrop
Shares of LULU ended the day down 9.33% to $298.21 to mark the first trip back below $300 since late October.