Lululemon Lowers Guidance for Second Time This Year
lululemon has cut its full-year revenue and earnings forecasts for the second time in 2026, signaling ongoing challenges as incoming CEO Heidi O'Neill prepares to take over. The company now expects fiscal year 2026 revenue between $10.35 billion and $10.50 billion, down from a previous range of $11.0 billion to $11.15 billion. Earnings per share guidance was also reduced. Second-quarter results showed weaker-than-expected performance with an overall 4% decline in revenue and significant drops in the Americas region. The company cited inconsistent product launches, weak demand for core women's products, negative online sentiment, and increased competition as key issues. Despite a rise in gross margin due to tariff refunds, this improvement is not seen as sustainable. However, analysts note that lululemon still has strong brand recognition, high margins, and an established customer base, offering potential for recovery if management can stabilize the business.
Tickers: $LULU
Topics: CEO transition revenue guidance same-store sales decline turnaround strategy