Lululemon’s(NASDAQ: LULU) fairytale rally may not be impervious to the volatile market that has weighed on its fellow retailers. After a run of nearly 100% off its lows, the stock sank following a 1Q earnings and revenue miss. The athleisure company reported a profit of $0.22 per share, down considerably from $0.74 in the year prior. Revenue tumbled nearly 17% to $652 million, missing analyst expectations of roughly $695 million. Much of the miss can be attributed to income from operations. The retailer posted $32.8 million in 1Q20, falling nearly 75% from $128.8 million in the same quarter of 2019. Gross margin remained slightly in line with year-over-year figures, at 51.3% vs 53.9% last year. Lululemon said it is not providing financial guidance for fiscal 2020 due to the ongoing pandemic. However, the company remains confident in its long-term growth and stated it has sufficient funds to meet current liquidity levels. Within the last few weeks, the retailer has opened 200 stores in accordance with each state’s specific mandates. This brings the total number of reopened stores to around 350, roughly 76% of the total stores the company operates globally. The stock is now up about 33% YTD.
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