| COMPANY |
lululemon athletica inc. |
| COURT |
United States District Court for the Southern District of New York |
| CASE NUMBER |
24-cv-06033 |
| JUDGE |
The Hon. Andrew Lamar Carter Jr. |
| CLASS PERIOD |
December 7, 2023 through July 24, 2024 |
| SECURITY TYPE |
Securities |
LEAD PLAINTIFF DEADLINE IS OCTOBER 7, 2024.
If you have suffered losses and would like to discuss your rights, please fill out this form or you may contact Jonathan Naji, Esq. at (484) 270-1453 or via e-mail at info@ktmc.com.
Case Background:
The Class Period begins on December 7, 2023 when the company announced its quarterly results and ensured investors that the company was effectively managing inventory allocation.
On January 8, 2024, the company issued a press release increasing revenue and earnings expectations for the fourth fiscal quarter of 2023 ending January 28, 2024.
Then, on March 21, 2024, after the market closed, lululemon issued a press release announcing its financial results for the fourth quarter and full year ended January 28, 2024, which revealed that the company’s growth was stagnating in the Americas region. Specifically, lululemon reported that net revenue in the Americas grew 9% in the quarter and 12% in the fiscal year 2023, short of the 29% growth in the year-ago period and 12% growth in the previous quarter. On this news, lululemon’s share price fell $75.65, or 15.80%, to close at $403.19 per share on March 22, 2024, on unusually heavy trading volume.
On July 24, 2024, Bloomberg reported that several analysts posited that lululemon’s inventory allocation seemed inconsistent, particularly as to the Breezethrough legging launched earlier that month, both in-store and online. On this news, lululemon’s stock price fell $9.31, or 3.3%, to close at $272.06 per share on July 24, 2024, on unusually heavy trading volume.
Finally, on July 25, 2024, before the market opened, Bloomberg reported that a lululemon spokesperson told the agency that the company “made the decision to pause on sales [of the Breezethrough yoga wear] for now to make any adjustments necessary to deliver the best possible product experience.” On this news, lululemon’s share price fell $24.74, or 9.09%, to close at $247.32 per share on July 25, 2024, on unusually heavy trading volume.
The complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose that: (1) lululemon was struggling with inventory allocation issues and color palette execution issues; (2) the company’s Breezethrough product launch underperformed; (3) as a result, lululemon was experiencing stagnating sales in the Americas region; and (4) as a result of the foregoing, Defendants’ positive statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
What is a Lead Plaintiff?
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.