Lululemon Stock Plummets After Profit Guidance Cut and Sales Decline
Shares of Lululemon Athletica (NASDAQ: LULU) dropped 17.38% on September 4, 2026, after the athletic apparel company slashed its full-year profit forecast due to declining sales and shifting consumer preferences. In its fiscal second quarter ended August 2, revenue fell 4% year-over-year to $2.4 billion, with comparable store sales down 9%. The brand's signature leggings saw a roughly 20% decline in sales as customers shifted toward less form-fitting styles. Lululemon also reported an operating income drop of 13% to $453.7 million and earnings per share fell by 6% to $2.92, despite tariff refunds that cushioned the blow slightly. The company now expects third-quarter revenue to fall more than 10%, and it cut its full-year EPS guidance from $10.95–$11.15 to $9.48–$9.73. Incoming CEO Heidi O'Neill, who will take over on September 8, faces a significant challenge in reversing the company's performance. The stock is trading at $100.61 with a market cap of approximately $14 billion.
Tickers: $LULU
Topics: comparable sales drop Lululemon profit forecast cut revenue decline