On June 5, Lululemon Athletica fell 11.3% in pre-market trading, trading at approximately $110.79/share, with trading volume of $2.14 million. The decline was triggered by the company's first-quarter earnings report and a significant downward revision to full-year guidance.

Lululemon reported Q1 revenue of $2.47 billion, up 4% year-over-year and slightly above consensus of $2.43 billion, while EPS of $1.69 narrowly missed the $1.70 estimate, representing a 35% decline from $2.60 in the prior-year period. Net income fell 38% year-over-year to $195 million. The company slashed its full-year revenue outlook to $11.0-11.15 billion from $11.35-11.5 billion, well below the Street estimate of $11.47 billion, and cut full-year EPS guidance to $10.95-11.15 from $12.10-12.30. Q2 revenue guidance of $2.45-2.48 billion also materially undershot the $2.6 billion consensus.

Management flagged that Americas comparable store sales have been flat for eight consecutive quarters, with the region's Q1 revenue declining 3%. Executives projected low double-digit declines in North America for Q2, citing underwhelming product launches and negative commentary impacting brand sentiment. Additional seasonal markdowns are planned. Jefferies lowered its target price from $145 to $115.

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