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Company: Lululemon (LULU)
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3 votes

  Quarterly Report does Not Impress

Although the company's Q3 2008 revenue increased by 34%, LULU decreased its Q4 and overall 2008 outlook because of weakening consumer spending and a weakening Canadian Dollar. Instead of $130 million in revenue in Q4, the company now expects it will earn $90-$95 in revenue during the quarter following a double digit decrease in comparable store sales.

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8 votes

  Downturn in the U.S. Economy

Although Lululemon's core customers are relatively unaffected by downturns in the economy, an economic recession reduces the spending power of many of the company's "fringe" customers that may purchase occassional items, and thus may hurt the company's growth in sales.

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