Lululemon CEO Calvin McDonald Warns of Slow Start to 2024 in the US

Lululemon Athletics Inc. finished strong For 2023 with A fourth trimester earnings beat, but chief executive officer Calvin McDonald's warned "there has has been A change In THE WE. consumer behavior of late, And were navigate What has has been A Slow down to start has THE year."

For THE perennial overperforming — which keep on going has track in front of It is strategic aim has double sales on five years, struck $12.50 billion by 2026 — he was A unusual splash of cold water.

Actions of THE Based in Vancouver business fell 10.6 percent has $428 In after hours trade on Wall Street.

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But McDonald's said analysts on A conference call that Lululemon remains both strong And flexible.

"We see This as A opportunity has keep playing offense as We skinny In investments that will continue OUR growth path," THE CEO said. "Out THE WE., OUR business remains strong In all OUR international markets.

"Consistent with What We have seen Since others In THE walk, THE consumer environment In THE United States has has been somewhat difficult," he said. "However, despite THE walk dynamic, We stay optimistic about OUR opportunities has to grow OUR business In THE WE. In 2024 And has continue has earn walk share. We to have robust plans In place has further to strenghten OUR position. We will continue has open And to optimise OUR stores with plans For five has ten new store openings And 15 has 20 optimizations. With WE. sales by square foot above OUR generally average of $1,600, OUR stores stay among THE most productive In THE industry. »

McDonald's said THE business would be continue has spend has booster It is brand awareness In THE WE. with community events And bigger brand campaigns.

DK Metcalf In Lululemon, which East look has to grow It is Men's business. Courtesy

"I know We to have A opportunity In This walk," he said. "OUR sizing In particular, In 0 has 4, East something were chasing In. Color, Or We had color, he carried out GOOD. And honestly, We just did not to have enough — And both of these attributes overindexed In THE United States….We are going has continue has play offense In THE walk. THE innovation product pipeline remains very strong For This year, And We to have a few exciting brand initiatives In addition. »

He said that traffic has slow motion In THE WE., but East always growth, while conversion East down slightly.