NEWTOWN, Pa., Aug. 13, 2024 /PRNewswire/ -- Edelson Lechtzin LLP, a leading class action law firm, announces that investors in lululemon athletica inc. (NASDAQ: LULU) stock between December 7, 2023, and July 24, 2024 (the "Class Period"), may seek appointment as lead plaintiff in the pending securities fraud class action lawsuit. A copy of the Complaint can be found HERE.
Investors who purchased Lululemon stock during the Class Period should consult experienced legal counsel about moving the U.S. District Court for the Southern District of New York to appoint them as lead plaintiff, no later than October 7, 2024. Please contact Edelson Lechtzin LLP to discuss your investment losses, at 844-696-7492 or by e-mail at elechtzin@edelson-law.com. You can also submit your trading information online HERE.
Background on Lululemon Athletica Inc.
Headquartered in Vancouver, British Columbia, Canada, Lululemon is a technical athletic apparel company that specializes in yoga, running, and training.
The Securities Fraud Claims
The Complaint alleges that during the Class Period Defendants made materially false and/or misleading statements about the company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (i) that the company was struggling with inventory allocation issues and color palette execution issues; (ii) that the company's Breezethrough product launch underperformed; and (iii) that, as a result of the foregoing, the Company was experiencing stagnating sales in the Americas region.
After the market closed on March 21, 2024, Lululemon issued an earnings release for the fourth quarter and full year that ended on January 28, 2024. The results showed that the company's growth in the Americas was slowing. Specifically, net revenue in the Americas increased by 9% in the quarter and 12% in the fiscal year 2023, which was less than the 29% growth in the year-ago period and the 12% growth in the previous quarter. On this news, Lululemon stock fell $75.65 per share, 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 analysts had observed inconsistent inventory allocation at Lululemon, especially regarding the Breezethrough leggings launched earlier that month, both in-store and online. On this news, Lululemon stock fell $9.31, or 3.3%, to close at $272.06 per share on July 24, 2024, on unusually heavy trading volume.
On July 25, 2024, Bloomberg reported before the market opened that Lululemon had decided to temporarily halt sales of the Breezethrough yoga wear "to make any adjustments necessary to deliver the best possible product experience." On this news, Lululemon's stock price fell $24.74 per share, or 9.09%, to close at $247.32 per share on July 25, 2024, on unusually heavy trading volume.
For more information, please contact:
Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Phone: 844-696-7492 or 215-867-2399 ext. 1
Email: medelson@edelson-law.com
Email: elechtzin@edelson-law.com
Web: www.edelson-law.com
Edelson Lechtzin LLP is a leading class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.
This press release may be considered Attorney Advertising in some jurisdictions. No class has been certified in this case, so you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. Your ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
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SOURCE Edelson Lechtzin LLP
