Key facts
- Lululemon Athletica reduced its annual revenue and profit forecasts.
- The company anticipates a 5% to 7% decline in fiscal 2026 revenue.
- Fiscal 2026 earnings per share are now forecasted to be between $9.48 and $9.73.
- Softening demand and increased competition are cited as reasons for the revised outlook.
- The forecast cut occurs shortly before Heidi O'Neill assumes the CEO role.
Lululemon Athletica announced on Thursday a reduction in its annual revenue and profit forecasts, signaling challenges related to softening demand and increased competition. The athletic apparel company now projects a revenue decline of 5% to 7% for fiscal year 2026, a significant shift from its previous outlook of flat revenue or a decline of up to 1%. Additionally, Lululemon anticipates fiscal 2026 earnings per share to fall between $9.48 and $9.73, down from its earlier projection of $10.95 to $11.15. These revised forecasts underscore the hurdles incoming CEO Heidi O'Neill will face as the company contends with sluggish sales and competition from newer brands.