Lululemon Stock Falls Sharply Following Third Revenue Guidance Reduction
On September 3, Lululemon Athletica (ticker: LULU) stock dropped by nearly 18% in after-hours trading as the company announced its third downward revision to full-year revenue guidance for 2026. The latest cut brought expected annual sales down to $10.35 billion–$10.50 billion, from a previous range of $11.00 billion–$11.15 billion in June and $11.35 billion–$11.50 billion in March. Despite beating earnings estimates for the second quarter, Lululemon missed sales forecasts with revenue declining 4% year-over-year to $2.42 billion. The stock fell below its 52-week low and reached an eight-year intraday price level of under $100, trading at about 80% less than its all-time high in December 2023. The company cited reputational damage from negative media coverage as a key factor affecting sales performance. Lululemon also faces internal challenges including founder Chip Wilson's proxy battle and the departure of former CEO Calvin McDonald earlier this year.
Tickers: $LULU