Incoming Lululemon Athletica chief executive Heidi O'Neill has a number of challenges ahead of her.
Stock futures are mixed ahead of fresh labor market data due this morning; the August jobs report will factor into the Fed's decision later this month on interest rates; auto safety regulators said they're looking into Tesla's cybercab after a launch event yesterday; Lululemon shares are plunging after the retailer lowered its outlook; and Adobe named a new CEO. Here's what you need to know today.
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Shares of Lululemon Athletica fell about 18% in premarket trading on Friday after the sportswear maker cut its full-year forecast for a second time, underscoring the hurdles awaiting incoming CEO Heidi O'Neill.
For years, Lululemon could sell premium leggings with pricing power and customer loyalty most apparel companies envied. Its latest quarter suggests that advantage is being tested.
The stock is down 15% as analysts question the yoga-wear maker's fashion assortment.
Lululemon posted another quarter of disappointing earnings results and sales slowdown as the company struggles to turn its business around. The retailer said its comparable sales sank 9% during the second fiscal quarter.