Lululemon Athletica lowered its annual revenue and profit forecasts for the second time, projecting a 5% to 7% revenue decline for fiscal 2026. Shares fell approximately 20% as the company cited softening demand, merchandising missteps, and increased competition.
The repeated forecast cuts and significant share price drop highlight ongoing challenges for Lululemon in a competitive market, raising concerns about the effectiveness of its turnaround strategy under new leadership.
Lululemon Athletica has again lowered its annual revenue and profit forecasts, citing softening demand and increased competition. The sportswear maker's shares fell approximately 20% following the announcement of a projected 5% to 7% decline in fiscal 2026 revenue and earnings per share between $9.48 and $9.73. This marks the second forecast cut and comes as the company grapples with merchandising missteps and a challenging North American market, where second-quarter revenue fell 8%. Incoming CEO Heidi O'Neill faces significant hurdles in reviving demand and restoring growth.
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