Still in the Doghouse: Lululemon Lowers Q4 Guidance

The Canadian yoga-clothing company, whose chairman announced his resignation in December following his controversial remarks about women, says it has seen sales 'decelerate meaningfully' since the start of the new year.

learn more about Catherine Clifford

By Catherine Clifford

Opinions expressed by Entrepreneur contributors are their own.

Pro tip: If your chairman talks negatively about women's bottoms, then your company's bottom line will suffer.

High-end yoga apparel maker Lululemon, whose controversial founder and chairman is set to step down in June, lowered its revenue and profit estimates for its fiscal fourth quarter, which ends on Feb. 2.

The company expects sales in the range of $513 million to $518 million, down from the previously announced range of $535 million to $540 million, on weaker same-store sales. Earnings are expected at $0.71 to $0.73 per share for the quarter, down from previously announced guidance of $0.78 to $0.80 per share.

Related: Lululemon Founder Resigns Amid Backlash Over 'Women's Body Type' Remarks

"We were on track to deliver on our sales and earnings guidance through the month of December; however, since the beginning of January, we have seen traffic and sales trends decelerate meaningfully," said John Currie, the chief financial officer of Lululemon in the statement. He said it would take the company "investment and time to get to best-in-class status."

The Vancouver, Canada-based company's fall from grace began with the embarrassing revelation that some of its pants were see through and the non mea culpa of founder and chairman Chip Wilson, where he claimed in November that "some women's bodies just don't actually work" for the clothing. The comments sparked quite the backlash of offended women. Wilson has since resigned from his post and will leave in June.

In an effort to give its leadership a facelift, Lululemon has brought on Laurent Potdevin, the former president of TOMS Shoes, as chief executive officer.

Related: TOMS Creates E-Commerce Hub for Socially Conscious Shoppers

Catherine Clifford

Senior Entrepreneurship Writer at CNBC

Catherine Clifford is senior entrepreneurship writer at CNBC. She was formerly a senior writer at Entrepreneur.com, the small business reporter at CNNMoney and an assistant in the New York bureau for CNN. Clifford attended Columbia University where she earned a bachelor's degree. She lives in Brooklyn, N.Y. You can follow her on Twitter at @CatClifford.

Related Topics

Editor's Pick

Everyone Wants to Get Close to Their Favorite Artist. Here's the Technology Making It a Reality — But Better.
The Highest-Paid, Highest-Profile People in Every Field Know This Communication Strategy
After Early Rejection From Publishers, This Author Self-Published Her Book and Sold More Than 500,000 Copies. Here's How She Did It.
Having Trouble Speaking Up in Meetings? Try This Strategy.
He Names Brands for Amazon, Meta and Forever 21, and Says This Is the Big Blank Space in the Naming Game
Business News

These Are the Most and Least Affordable Places to Retire in The U.S.

The Northeast and West Coast are the least affordable, while areas in the Mountain State region tend to be ideal for retirees on a budget.

Culture

Remote Work Doesn't Have To Suffocate Your Company Culture. Here's How to Foster a Stellar Digital Culture

How do you encourage creativity and out-of-the-box thinking digitally? By fostering a dynamic and supportive company culture.

Legal

How to Negotiate a Commercial Agreement Like a Pro

No matter the industry, negotiating is crucial to finding the fairest deal possible.