Lululemon Shares Slide as Retailer Trims Annual Outlook

The company now expects fiscal 2026 sales between $11 billion and $11.15 billion, falling well short of the $11.48 billion analysts previously projected. Earnings guidance saw a sharper reduction, dropping to a range of $10.95 to $11.15 per share, significantly below the $12.30 estimate held by Wall Street. Investors responded by sending shares down more than 7% in extended trading.

While Lululemon managed to narrowly beat expectations for the fiscal first quarter—reporting $2.47 billion in revenue and $1.69 in earnings per share—the figures underscored a broader cooling of the brand. Net income plummeted to $195 million from $314.6 million during the same period last year. The retailer has increasingly relied on markdowns to move inventory, a strategy that threatens its premium reputation while failing to stem the tide of quality complaints and innovation stagnation. With new CEO Heidi O'Neill not expected to take the helm until September, the company remains in a state of transition, caught between a need to overhaul its product engine and the reality of its current domestic growth challenges.