Lululemon shares fall 15% after weak earnings and lower outlook

Lululemon shares dropped 15% on Thursday after the company reported another quarter of disappointing results and lowered its fullyear forecast. The retailer said secondquarter revenue fell 4% and comparable sales declined 9%, marking another sign that its recovery remains uneven. Interim CEO Meghan Frank said weaker social media sentiment and slower performance in key product lines, including leggings, weighed on results. For the third fiscal quarter, Lululemon expects revenue between $2.29 billion and $2.32 billion, below the prior year’s level. For the full year, it now sees revenue of $10.35 billion to $10.5 billion, down from earlier guidance of $11 billion to $11.15 billion. Heidi O'Neill is scheduled to become the company’s new CEO next week as Lululemon works to stabilize sales and improve its product strategy.