KUALA LUMPUR, Jan 8 (Bernama) -- Bursa Malaysia’s benchmark index closed lower on Thursday amid profit-taking in big-cap stocks, as investors shifted their focus to smaller-cap counters against the backdrop of weaker regional market performance. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 7.26 points or 0.43 per cent to 1,669.57 from Wednesday’s close of 1,676.83. The FBM KLCI opened 2.61 points lower at 1,674.22 and moved between 1,666.34 and 1,674.44 throughout the day. On the broader market, gainers led losers by 579 to 489, while 565 counters were unchanged, 1,016 untraded, and 12 suspended. Turnover was slightly higher at 2.79 billion units worth RM2.84 billion from Wednesday’s 2.73 billion units worth RM2.76 billion.
Key Takeaways for Investors:
- Q4 Beat Expectations, But That’s Not the FocusLululemon posted strong Q4 earnings of $6.14 per share, beating estimates of $5.85. Revenue came in at $3.6 billion, up 13% and in line with forecasts. But the stock dropped 5.9% in after-hours trading.
- FY25 Guidance Disappoints Wall StreetManagement expects FY25 revenue of $11.15–$11.3 billion, which implies growth of just 5%–7%, below the 7% consensus. EPS guidance of $14.95–$15.15 also missed expectations ($15.37).
- Soft Q1 Outlook Fuels ConcernFor Q1, Lululemon sees revenue of $2.335–$2.355 billion and EPS of $2.53–$2.58 — both short of analyst forecasts. This adds to investor anxiety about slowing consumer demand and rising competition.
- Traffic and Competition Trends Add PressureIn-store traffic dipped in February, while rivals like Alo Yoga saw double-digit growth. Analysts point to rising competition from brands like Vuori — and Nike's Skims partnership — as growing threats to Lululemon’s market share.
- Valuation Reset Creates Opportunity?The stock is down 12% year-to-date and now trades at 21.6x forward earnings, well below its 5-year average of 36.7x. If spring sales rebound, some analysts believe there’s room for upside.
Investor Insight:
While Lululemon is still a premium brand with strong margins, its soft guidance reflects broader retail headwinds. Management’s cautious tone may be “prudently conservative,” but with traffic trends weakening and competition intensifying, investors will want to see signs of a strong spring rebound before jumping back in.
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