The Vancouver-based athleisure retailer posted weak U.S. sales growth for the fourth quarter. The company also said it expects net revenue between US$10.7 billion to US$10.8 billion, or growth of 11 to 12 per cent, in the year ahead. Morningstar analyst David Swartz called the guidance “disappointing,” saying it’s shy of Lululemon’s historical levels and the investment firm’s 14 per cent growth estimate. (The Logic)

Talking point: Lululemon shares fell 19 per cent to an intra-day low of US$387.11 on the Nasdaq. Activewear has become an increasingly competitive market and U.S. growth is expected to weaken this year, said Swartz, noting Lululemon has mostly been immune to these headwinds until now. On a call with analysts, CEO Calvin McDonald acknowledged the U.S. consumer is “a little bit softer” and the company is looking to raise brand awareness. Investors are likely to view this effort skeptically, wrote Citi analyst Paul Lejuez, and international growth will be the retailer’s “most important driver” going forward.