(Bloomberg) — Lululemon Athletica Inc. slumped essentially the most because the begin of the pandemic after reporting a slowdown in its US enterprise and lower-than-expected outlooks for the primary quarter and full yr.The shares fell as a lot as 15% in New York buying and selling Friday — the largest decline since March 2020. The inventory has slipped 6.3% up to now this yr via Thursday’s shut, in contrast with a 9.9% achieve for the S&P 500 Index.Visits to US shops slowed initially of the yr and consumers purchased barely lower than a yr earlier, Chief Government Officer Calvin McDonald instructed analysts throughout a convention name on Thursday. American customers “are just a little delicate coming into the yr,” he added. The US site visitors slowdown has been throughout the board, the corporate stated, and wasn’t specific to a selected class.Lululemon sees income within the present fiscal yr in a variety of $10.7 billion to $10.8 billion, in line with a press release. That might signify development of 11% to 12%, which is properly under the 19% it posted the earlier yr. The higher restrict can also be under analysts’ common estimate.The corporate’s “underwhelming” efficiency in North America and “disappointing” gross sales steering has “fueled the bear narrative,” in line with Morgan Stanley analyst Alex Straton.The corporate has had a stellar post-pandemic run and continues to publish strong outcomes. Lululemon’s ongoing double-digit gross sales development compares with declines at many US attire corporations. Moreover, the yogawear maker sometimes guides conservatively — after which beats these forecasts, main buyers to anticipate better-than-forecast outcomes.To draw extra consumers, McDonald stated Lululemon will probably be rolling out merchandise in new colours in addition to extra objects within the 0 to 4 measurement vary. Analysts are additionally optimistic about new materials and different improvements deliberate for the yr.“They’ll beat their conservatively-set steering,” Bloomberg Intelligence analyst Poonam Goyal stated. “Loads of alternative exists — particularly overseas and in males’s.” Joseph Civello and Scot Ciccarelli at Truist wrote that “the corporate’s robust innovation pipeline will proceed to be a key development driver.”Story continuesSee additionally: Lululemon earnings snapshotProducts for males grew 15% within the fourth quarter, which led to late January, outpacing 13% for girls’s attire. Equipment, in the meantime, surged 40% within the interval. The Vancouver-based firm expects to open 35 to 40 new shops this yr, primarily in China.Worldwide web income jumped 54% whereas gross sales within the Americas elevated a extra modest 12%. Lululemon expects to generate web income of $12.5 billion by 2026, pushed partly by a plan to bolster e-commerce, worldwide gross sales and gross sales of males’s attire.“All worldwide markets, together with Canada, are persevering with their robust momentum into Q1,” McDonald stated.The activewear firm is specializing in enlargement in China particularly as competitors rises within the US and competitors ramps up with manufacturers comparable to Alo Yoga and Vuori. It’s additionally increasing its providing of equipment, footwear and males’s attire to enhance its strong gross sales of girls’s leggings and different sportswear.—With help from Joel Leon.©2024 Bloomberg L.P.