The retailer lowered full-year sales and earnings guidance below analyst expectations, citing undisclosed headwinds.
Lululemon reduced its fiscal 2026 sales forecast to a range of $11 billion to $11.15 billion, down from $11.35 billion to $11.50 billion. Analysts had expected $11.48 billion. Earnings per share guidance was cut to $10.95-$11.15 from $12.10-$12.30, missing the $12.30 estimate.
The company also issued weaker-than-expected Q2 guidance, projecting sales of $2.45 billion to $2.48 billion versus the $2.60 billion consensus. EPS is forecast at $1.76-$1.81, well below the $2.68 estimate. Shares fell over 7% in extended trading following the announcement.
Lululemon’s stock has declined roughly 40% year-to-date. Interim CEO Meghan Frank acknowledged headwinds but expressed confidence in the company’s long-term strategy.