Lululemon stock collapses: Soft sales in China reveal negative impact of viral drum controversy

Shares of Lululemon Athletica (Nasdaq: LULU) are down more than 20% in premarket trading on Friday.  The plunge follows a disappointing second quarter earnings report, released by the Canadian apparel company on Thursday.  Lululemon’s revenue fell 4% year-over-year (YOY) to $2.4 billion. It failed to meet the company’s predicted 2% to 3% decline, “with the shortfall driven predominantly by China Mainland,” Lululemon interim CEO Meghan Frank said in a post-earnings call.  China saw a 4% growth…