Shares: Lululemon profit warning also weighs on Adidas and Puma

The slump in Lululemon shares following weak figures and a revenue and profit warning is also expected to weigh on the shares of Adidas and Puma on Friday.

The shares of the US sportswear manufacturer Lululemon slumped by 18 percent in after-hours trading in the US, falling to their lowest level since 2018.

However, in pre-market trading on Tradegate, the losses for the German sportswear manufacturers have so far remained limited. The shares of Adidas and Puma lost 0.7 percent and 0.8 percent respectively, compared to their closing prices the previous day. Nike shares fell by about half a percent in after-hours trading.

Regarding Lululemon, analyst Randal Konik from the US bank Jefferies spoke of a “triple whammy” in the second quarter. In its home market, revenue fell by 8 percent; for womenswear by 4 percent; and in China by 2 percent on a currency-adjusted basis. In terms of earnings per share, the company had only benefited from a customs refund. Excluding this, it would have been significantly lower.

Paul Lejuez of Citigroup considers the performance in China to be the main disappointment. Instead of an expected revenue increase of 13 percent, revenue there fell by 8 percent. Management has now lowered its forecasts, particularly for China. There, revenue for the current year is now expected to increase by only a high single-digit percentage. This compares with a consensus forecast of around 19 percent, according to Lejuez.