(Vancouver) Lululemon Athletica’s stock fell about 17% Friday morning and remained lower into the early afternoon as markets reacted to the company’s financial results released the day before.
On Thursday, the Vancouver-headquartered clothing company announced that it generated a profit of US669.5 million in its fourth quarter, compared to US119.8 million for the same period a year earlier.
Despite the increase, company executives reported that the quarter that ended Jan. 28 was marked by weakness in the U.S. market.
The company also saw an increase in younger customers shopping at Lululemon, leading to increased demand for smaller sizes and a wider range of colors.
In a conference call with analysts, however, Lululemon CEO Calvin McDonald admitted that the company does not have enough products to meet demand.
He assured that the company will further examine how its product assortment and strategies could better meet the demand of younger consumers.