**Article Analysis:**
The article discusses how Lululemon, an athletic apparel retailer, saw a plunge in its shares after issuing disappointing guidance and citing soft sales in the U.S., their largest market. Despite reporting holiday earnings that exceeded expectations, the company’s growth in North America is stagnating.
**Three Highlights:**
1. Lululemon’s reported earnings per share were $5.29 vs. an expected $5.00, while revenue was $3.21 billion vs. an expected $3.19 billion.
2. The company experienced a 16% increase in sales, reaching $3.21 billion, compared to $2.77 billion a year earlier.
3. Lululemon’s shares closed 16% lower on Friday, contributing to a 21% overall decrease in share value for the year.
**Summary:**
Despite surpassing earnings expectations, Lululemon faced a significant drop in share value due to disappointing guidance and soft sales in the U.S. market. The company’s growth in North America is slowing down, while international sales show more promising results, particularly in China. Lululemon’s focus on expanding internationally and diversifying its product offerings, such as entering the men’s market and footwear segment, reflects its strategy to navigate challenging market conditions.
Editorial content by Sierra Knightley
