LULU reports a 4% U.S. sales decline and 6% drop in comparable Americas sales, offset by growth in international markets.
Lululemon’s first-quarter revenue rose 4% to $2.5 billion, but U.S. sales fell 4% as consumer spending softened. Comparable sales in the Americas slid 6% on a constant-dollar basis, signaling weaker demand at existing stores.
Adjusted earnings per share dropped to $1.69 from $2.60 a year earlier, while gross margin contracted 410 basis points to 54.2%. Executives cited negative media sentiment and underperforming product launches as key challenges.
The company is pivoting toward faster-growing international markets to counter sluggish U.S. performance.