Lululemon Athletica Inc (NASDAQ:LULU) stock fell 0.43% (As on August 30, 11:29:23 AM UTC-4, Source: Google Finance) after the company lowered its guidance and posted its first revenue miss in more than two years on Thursday after it botched a highly anticipated product launch and growth slowed in the Americas. Lululemon also missed expectations on comparable sales, which grew 2%, well behind estimates of 5.9%, according to StreetAccount. Comparable sales in the Americas fell 3%. The company’s reported net income for the three-month period that ended July 28 was $393 million, compared with $342 million, a year earlier. Gross profit grew 9% to $1.4 billion, while its gross margin increase 0.8 percentage points to 59.6% — better than the 57.7% that analysts had expected, according to StreetAccount. Its operating margin and operating income also increased. Sales jumped 29% in Lululemon’s international markets as the company looks to China for growth.

LULU in the second quarter of FY 24 has reported the adjusted earnings per share of $3.15, beating the analysts’ estimates for the adjusted earnings per share of $2.93, based on a survey of analysts by LSEG, formerly known as Refinitiv. The company had reported the adjusted revenue growth of 7 percent to $2.37 billion in the second quarter of FY 24, missing the analysts’ estimates for revenue of $2.41 billion. Within the regions, Americas revenue increased 1% or 2% in constant currency. Comparable sales declined 2%. China Mainland revenue increased 34% or 37% in constant currency, with comparable sales increasing 23%. And in the Rest of World segment, revenue grew by 24% or 27% in constant currency, with comparable sales increasing by 20%. In our store channel, total sales increased 11%, and the company ended the quarter with 721 stores globally. Square footage increased 14% versus last year, driven by the addition of 49 net new lululemon stores since Q2 of 2023. During the quarter, the company opened 10 net new stores and completed six optimizations.

The company now expects full-year net revenue to be between $10.38 and $10.48 billion, down from a previous range of between $10.7 billion and $10.8 billion. Lululemon anticipates earnings per share will be in a range of $13.95 to $14.15, down from previous guidance of $14.27 to $14.47.

For the third quarter, Lululemon said it expects sales to grow 6% to 7%, worse than the 9.2% growth that analysts had expected, according to LSEG. However, Lululemon’s profit guidance is roughly in line with what Wall Street anticipated. The company said it expects third-quarter earnings per share to be between $2.68 and $2.73, compared to estimates of $2.70, according to LSEG.