Lululemon cuts annual outlook, citing 'negative' media commentary and disappointing product launches

Livestream Menu Lululemon may have settled its proxy contest and hired a new CEO, but its challenges are far from over. The athletic apparel retailer cut its full-year guidance and issued a weak outlook for the current quarter, citing undisclosed headwinds. Lululemon beat Wall Street's expectations on the top and bottom lines, albeit on lowered expectations. LULU Customers enter a Lululemon store inside a shopping mall on May 23, 2026, in Shenzhen, Guangdong Province, China. Lululemon's stock has plunged about 40% this year as of Thursday's close. Lululemon is now expecting fiscal 2026 sales to be between $11 billion and $11.15 billion, down from a previous range of between $11.35 billion and $11.50 billion. Analysts were expecting full-year sales of $11.48 billion, according to LSEG.  Lululemon also cut its earnings guidance $1 per share. It's now expecting earnings per share to be between $10.95 and $11.15 for the year, down from a previous range of $12.10 to $12.30. Analysts were expecting $12.30 per share, according to LSEG.  The current quarter doesn't look much better. Lululemon is expecting sales to be between $2.45 billion and $2.48 billion, below expectations of $2.60 billion, according to LSEG. It's expecting earnings per share to be between $1.76 and $1.81, well below expectations of $2.68, according to LSEG.  While Lululemon's guidance failed to meet forecasts, it did beat expectations on the top and bottom lines during its fiscal first quarter, albeit on expectations that have come down significantly since the retailer last reported earnings. Here's how the company performed compared with what Wall Street was anticipating, based on a survey of analysts by LSEG: The company's reported net income for the three-month period that ended May 3 was $195 million, or $1.69 per share, compared with $314.6 million, or $2.60 per share, a year earlier.  Sales rose to $2.47 billion, up about 4% from $2.37 billion a year earlier. Comparable sales grew 1%, better than expectations of 0.4%, according to LSEG. Lululemon's woes have been centered on the Americas, its largest and most important region. During the quarter, comparable sales fell 5% in the market, marking the fifth straight quarter of declines. Lululemon's overall business is still growing, but it has primarily seen that expansion in China and in other international regions, which make up a fraction of overall revenue.  During the quarter, international sales grew 22% while international comparable sales grew 13%. Lululemon said it expects its declines in North America to continue. It anticipates sales will fall by a low-double digit percentage in the current quarter and by a high-single digit percentage for the full year. Meanwhile, it expects China sales will rise by a mid-to-high teens percentage during the current quarter and by about 20% for the full year.