Business

Lululemon profit misses expectations

Shoppers walked past a Lululemon Athletica store in New York.
Shoppers walked past a Lululemon Athletica store in New York. Bloomberg News

Yogawear retailer Lululemon Athletica reported a third-quarter profit that missed analysts’ estimates as sluggish sales forced the retailer to cut prices on more items.

Profit in the quarter ending Nov. 1 was 35 cents a share, the company said. Analysts estimated 37 cents a share. Sales rose 14 percent to $479.7 million, also trailing analysts’ average projection.

The results show increased competition from rivals such as Nike and Under Armour and unseasonably warm weather have Lululemon struggling to clear out a glut of seasonal products.

More price slashing may be necessary in the fourth quarter, the company said.

Bloomberg News

This story was originally published December 9, 2015 at 2:31 PM with the headline "Lululemon profit misses expectations."

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