Lululemon's Website Down For Roughly 24 Hours

Tuesday marked Day Two of Lululemon Athletica inc. LULU’s website blackout ━ a failure Macquarie considers costly.

For every three days of inaccessibility, Lululemon forfeits a penny in earnings per share out of its second-quarter estimate of $0.37, according to Macquarie evaluations.

Projecting $94.4 million in second-quarter direct-to-consumer sales, about 17 percent of the company’s total sales, the firm calculated a daily breakdown of about $1.04 million, or 0.25 percent of total quarterly sales and 0.33 percent of pre-expense operating income. In other words, for each day of website issues, Lululemon’s total comp for the day “is likely down double digits.”

While weekday disturbances prove less detrimental to brick-and-mortar retail, whose revenues are generally heavier on weekends, the timing of Lululemon’s blackout means little by way of revenue salvaging. Macquarie proposed that e-commerce sales are distributed evenly throughout the week, so Monday business is equally important as Saturday business.

Lululemon fell 2.2 percent Tuesday following the negative analysis. Shares were trading down 1.7 percent at $48.69 at the time of publication.

At time of publication, Lululemon appeared to be back up and fully functional.

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