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Lululemon cuts annual outlook and issues weak Q2 guidance, citing undisclosed ‘headwinds’
The company cited weak North America demand and headwinds after first-quarter net income fell 38% and comparable sales slipped 2%.
- On Thursday, The Vancouver-based Lululemon lowered its fiscal 2026 revenue outlook to US$11.0–11.2 billion, representing flat to 1% decline, while reporting first-quarter revenue of US$2.5 billion and net income of US$195 million.
- Interim CEO Meghan Frank attributed the revised forecast to product launches that failed to meet expectations and negative media commentary that hurt the brand's image and sales.
- International sales grew 8 per cent in the quarter, but performance in North America, the company's largest market, slipped 6 per cent, extending a multi-year decline in the crucial region.
- Former Nike executive Heidi will join as CEO in September to address these urgent performance challenges, marking a critical leadership transition for the struggling retailer.
- Co-CEO Maestrini described fewer discounts in North America as 'positive signals' for the business, yet cautioned that regaining customer traction will require time to take effect.
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Lululemon shares tank as investors rattled by profit warning: 'Brand momentum is fading'
Lululemon Athletica shares fell about 8% on Friday after the athleisure wear maker cut its annual profit forecast, fanning worries over the pace of its turnaround and shifting focus to the challenges awaiting the incoming CEO.
·New York, United States
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Lululemon Athletica suffered a sharp decline on New York stock exchanges on Friday. The Canadian-American sportswear manufacturer, known for yoga leggings, posted higher revenue last quarter but saw net profit fall. The profit forecast for the current quarter also turned out lower than hoped. Additionally, the company became more negative regarding the outlook for the entire year. The stock fell by 9 percent.
·Apeldoorn, Netherlands (Kingdom of the)
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Coverage Details
Total News Sources45
Leaning Left10Leaning Right7Center14Last UpdatedBias Distribution45% Center
Bias Distribution
- 45% of the sources are Center
45% Center
L 32%
C 45%
R 23%
Factuality
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