Lululemon reported fourth-quarter results with earnings per share surpassing internal guidance for the sixth straight quarter, driven by sustained global demand. Revenue growth in key markets offset challenges in North America, reinforcing the brand’s resilience.

Management provided 2026 EPS guidance below the $12.90 analysts had modeled, citing cautious outlook amid early-year uncertainty. This tempered investor enthusiasm despite the earnings beat and triggered a pullback in shares.

Founder Chip Wilson intensified scrutiny of the board’s strategy, criticizing increased reliance on heavy discounting and lagging product development quality. He warned that greater competition in the sportswear sector has eroded the company’s historical growth edge.

The board’s ongoing search for a new CEO underscores leadership uncertainty as Lululemon navigates a more crowded market. Accelerated innovation and refined merchandising strategies are expected to be focal points under the next chief executive.