Lululemon shares down in holiday quarter as consumers curb spending – National | 24CA News

Lululemon Athletica LULU.O forecast current-quarter income and revenue beneath Wall Street estimates on Thursday, as customers curb spending on higher-priced clothes and accessories attributable to decades-high inflation, sending its shares down 10%.

High inflation, rising rates of interest and the specter of a recession within the United States has resulted in a shift in shopper spending impacting the gross sales of attire and sportswear as cash-strapped shoppers deal with necessities.

People are proscribing themselves from splurging on higher-priced merchandise denting gross sales at corporations like Lululemon that has been elevating costs on its merchandise to offset increased freight expenses.

Lululemon, nevertheless, raised its full-year income and revenue forecasts and beat third-quarter income estimates.

The firm forecast fourth-quarter income between $2.61 billion and $2.66 billion, in comparison with analysts’ estimates of $2.65 billion, in keeping with IBES knowledge from Refinitiv.

Lululemon sees fourth-quarter revenue between $4.20 and $4.30 per share, in comparison with analysts’ common estimate of $4.30 per share.

(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Maju Samuel)