Lululemon Athletica’s (LULU) share price fell by more than 9 percent Friday, following weaker than expected comparable sales growth in its second quarter and a soft outlook for the current one. The activewear retailer said that in the three months ended July 31, sales at stores open at least one year—including direct-to-consumer—increased by 4 percent, versus an 11 percent jump a year ago.
As a result, net revenue rose 14 percent to reach $514.5 million, which helped the Canadian company post profits of $53.6 million or 39 cents per diluted share, up from last year’s $47.7 million or 34 cents per diluted share. Lululemon said it expects revenue in the third quarter to be in the range of $535 million and $545 million. Analysts, however, are hoping for $542 million.
Womenswear retailer Bebe (BEBE) on Thursday said that comparable store sales slipped 4.6% in its fourth quarter ended July 2, compared to a 1.1% increase a year ago, causing net sales to decrease 9 percent from $104.3 million to $94.9 million. However, by reducing its design-to-market process from 220 days to 105 days, combined with a decrease in SG&A expenses, the company swung from a loss of $5.2 million to a profit of $25 million, or 31 cents per diluted share. Bebe also closed four stores in the most recent quarter and plans to shutter 40 more in fiscal 2017.