Lululemon's Sales Growth Is Slowing Ahead of the Holidays.

Lululemon Athletica Inc., a popular activewear retailer, has reported slower sales growth ahead of the holiday season. While the company's sales growth is still strong compared to its competitors, it is being affected by higher-income shoppers spending more on travel and entertainment rather than apparel. Lululemon's fourth-quarter revenue is expected to be up 13% to 14% over last year, which is lower than the 19% growth seen in the previous three months. The company's stock has performed well this year, but there is pressure for it to maintain its growth. Lululemon has expanded globally and has seen significant revenue growth outside of North America. The retailer's fourth-quarter revenue guidance fell slightly below Wall Street estimates. In the third quarter, Lululemon's adjusted earnings per share were better than expected, but its operating margin and gross margin missed estimates. The company also incurred charges related to discontinuing its fitness product, Mirror, after partnering with Peloton Interactive Inc. in September. [Extracted from the article]