Lululemon shares plunge 18% after cutting revenue and earnings forecasts
The athleisure retailer reported falling quarterly sales and lowered its outlook for 2026 as shares extended a decline of more than 40% over the year.
Lululemon shares fell 18% on Friday after the company cut its full-year revenue and adjusted earnings forecasts, according to a Yahoo Finance report.
Second-quarter fiscal 2026 revenue declined 4% to US$2.4 billion, while comparable sales fell 9%. Interim co-chief executive and chief financial officer Meghan Frank said the company was taking a prudent approach to its revised outlook.
Lululemon now expects 2026 net revenue of between US$10.35 billion and US$10.5 billion, representing a decline of 5% to 7%. Adjusted earnings per share are forecast at US$9.48 to US$9.73.
The results come as Heidi O’Neill prepares to become chief executive next week. O’Neill’s appointment followed a board leadership dispute involving founder Chip Wilson, with the company and Wilson reaching a settlement in May.
Morningstar senior equity analyst David Swartz told Yahoo Finance that the company had no debt-related financial problems, but was facing weak sales growth. Lululemon’s shares had already fallen more than 40% over the year.
