Lululemon Cuts 2026 Forecasts as U.S. Sales Fall 4%, Sending Shares Down 9%
Updated
Updated · KFGO · Jun 4
Lululemon Cuts 2026 Forecasts as U.S. Sales Fall 4%, Sending Shares Down 9%
3 articles · Updated · KFGO · Jun 4
Summary
Flat-to-down 1% revenue is now Lululemon’s fiscal 2026 outlook, versus prior guidance for 2% to 4% growth, while EPS was cut to $10.95-$11.15 from $12.10-$12.30.
A 4% first-quarter sales drop in the U.S., its biggest market, drove the reset as waning brand appeal, inflation-hit discretionary spending and heavier competition from Alo Yoga and Vuori pressured demand.
China offered a bright spot with 23% constant-currency revenue growth, but that was not enough to offset North American weakness; shares fell about 9% in extended trading.
Heidi O’Neill, who takes over as CEO in September, inherits the turnaround after Lululemon ended founder Chip Wilson’s proxy fight in May and retained access to a $1.8 billion net cash pile for investment.