Lululemon's Holiday Outlook Disappoints, Shares Plummet

Lululemon reported strong third-quarter demand and a positive start to the holiday shopping season, with sales increasing 12% in North America and 49% internationally. However, the retailer's shares fell in extended trading after giving a tepid fourth-quarter outlook. Lululemon expects sales to be between $3.14 billion and $3.17 billion for Q4, below analysts' expectations. The company also provided full-year sales guidance of $9.55 billion to $9.58 billion, compared to estimates of $8.11 billion to $9.90 billion. Despite this, Lululemon's CEO expressed confidence in the company's performance and highlighted the strong performance on Black Friday.