SAN DIEGO, Aug. 27, 2024 (GLOBE NEWSWIRE) -- A class action lawsuit has been filed on behalf of purchasers or acquirers of lululemon athletica inc. (NASDAQ: LULU) (“lululemon” or the “Company”) common stock between December 7, 2023 and July 24, 2024, inclusive (the “Class Period”), charging the Company and certain senior executives (collectively, “Defendants”) with violations of the federal securities laws.
Lululemon investors have until October 7, 2024 to seek appointment as lead plaintiff of the lululemon class action lawsuit.
If you purchased lululemon common stock between December 7, 2023 and July 24, 2024, and suffered substantial losses, and you wish to obtain additional information or serve as lead plaintiff in this lawsuit, you may submit your information and contact us here: https://dicellolevitt.com/securities/lululemon/.
You can also contact DiCello Levitt attorney Hani Farah by calling (619) 923-3939 or at investors@dicellolevitt.com. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice.
Case Allegations
Lululemon is a designer, distributor, and retailer of technical athletic apparel, footwear, and accessories.
As alleged in the lululemon case, during the Class Period, Defendants made a series of false and misleading statements concerning the Company’s growth prospects. For example, in January 2024, Defendants told investors “[o]ur sales trend remains balanced across channels, categories, and geographies, enabling us to raise our guidance.” When securities analysts asked about a deceleration in growth, Defendants assured investors the slowdown was “contained to the fourth quarter [of 2023].”
In truth, the Company was struggling with inventory allocation issues and color palette execution issues and as a result, the Company’s Breezethrough product launch underperformed and the Company was experiencing stagnating sales in the Americas region, lululemon’s most important business segment.
The truth began to be revealed on March 21, 2024, when lululemon revealed that the Company’s growth was stagnating in the Americas region. Specifically, the Company reported underwhelming financial results for the fourth quarter of 2023 in North America and issued guidance for 2024 that was below analyst expectations in terms of both topline revenue and earnings per share. On this news, the Company’s share price fell $75.65, or nearly 16% to close at $403.19 per share on March 22, 2024.
Then, on July 24, 2024, Bloomberg reported that several analysts noted lululemon’s inventory allocation seemed inconsistent, particularly as to the Breezethrough legging launched earlier that month. On this news, the Company’s stock price fell $9.31, or 3.3%, to close at $272.06 per share on July 24, 2024.
Finally, on July 25, 2024, Bloomberg reported that a lululemon spokesperson told the publication that the Company “made the decision to pause on sales [of the Breezethrough yoga wear] for now to make any adjustments necessary to deliver the best possible product experience.” On this news, the Company’s share price fell $24.74, or 9.1%, to close at $247.32 per share on July 25, 2024.
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