Lululemon's North America growth stagnates, retailer issues weak guidance

Athletic apparel retailer Lululemon reported higher-than-expected earnings for the holiday season. However, its guidance for future growth in North America fell short of estimates, as the region experienced stagnation. In the fourth fiscal quarter, the company’s earnings per share reached $5.29 and revenue stood at $3.21 billion, surpassing Wall Street estimates, thanks to a 16% increase in sales. Despite solid performance internationally, Lululemon is facing increased competition and changing consumer preferences. The company expects net revenue and earnings per share to grow by 9-10% and $2.35-$2.40, respectively, in the coming quarter.