© Reuters. A Lululemon store in the CF Toronto Eaton Centre shopping mall in Toronto, Ontario, Canada December 13, 2021. REUTERS/Carlos Osorio/ File Photo
(Reuters) -Lululemon Athletica cut its annual sales forecast on Thursday, hurt by increased competition and selective consumer spending in its pricey leggings and tank tops in North America.
The shares of athleisure apparel maker, which have lost nearly half of their value so far this year, fell almost 7% in trading after the bell.
Lululemon (NASDAQ:) has seen a slower start to 2024 as sales moderate after years of strong growth, with persistent inflation prompting selective spending by shoppers.
The company also lost out on sales as it had to pull its newly launched “Breezethrough” leggings from its shelves and website within weeks of its July launch after customers complained about the fit, material and seams.
Foot traffic data from Placer.ai showed visits grew 3.7% between May and July, with the latter being the weakest month.
The company expects fiscal 2024 net revenue in the range of $10.38 billion to $10.48 billion compared with a prior forecast of $10.70 billion to $10.80 billion.
