Disappointing sales outlooks from Lululemon and Nike prompted CNBC's Jim Cramer on Friday to wonder whether the big athletic apparel makers are ceding ground to lower-priced competitors.
"Nike, Lulu — are these companies that are just charging too much when others are coming underneath them with good product?
Shares of Lululemon tanked more than 16% Friday after issuing light current-quarter and full-year guidance after the closing bell Thursday.
The company's finance chief said weaker U.S. traffic and a challenging consumer environment has led to the "broad-based" slowdown.
Lululemon's earnings report and outlook was "surprising," Cramer said, considering the Vancouver, Canada-based firm has been viewed as a "high-growth company."
Persons:
CNBC's Jim Cramer, Lulu —, Cramer, LULU, Ralph Lauren
Organizations:
Nike, Management
Locations:
Vancouver, Canada