Lululemon cuts 2026 outlook; shares sink 11% after hours
What's new: The retailer now sees annual sales as low as $11 billion and earnings as low as $10.95 a share, both below Wall Street targets.
Lululemon lowered its full-year forecast and issued weak second-quarter guidance after product launches fell short and brand criticism hurt traffic, sending the stock down 11% in extended trading. The athletic apparel retailer now expects fiscal 2026 revenue of $11 billion to $11.15 billion, down from $11.35 billion to $11.5 billion, and earnings per share of $10.95 to $11.15, down from $12.10 to $12.30. Current-quarter guidance also missed analyst estimates. For the quarter ended May 3, Lululemon posted adjusted earnings of $1.69 a share on $2.47 billion in revenue, narrowly topping forecasts. Interim CEO Meghan Frank pointed to recent weak product launches, criticism tied to founder Chip Wilson's proxy fight and questions about product composition.
Sources
- BloombergNeutral80% reliableRead →37 hours ago