Lululemon (LULU) is down about 3.65% as investors continue to reprice the stock after the company’s latest fiscal 2026 outlook and profitability deterioration highlighted in its Q4/FY2025 release. The setup is less about the quarter that just ended and more about a lower-growth forward trajectory paired with margin pressure, which has kept sellers in control following the guidance reset.

In its March 17, 2026 results release, lululemon forecast fiscal 2026 net revenue of $11.35B to $11.50B (2% to 4% growth) and EPS of $12.10 to $12.30, and guided Q1 2026 revenue to $2.40B to $2.43B with EPS of $1.63 to $1.68. The report also showed a sharp Q4 gross margin decline to 54.9% (down 550 bps) and FY2025 gross margin down to 56.6% (down 260 bps), reinforcing concerns that promotions, mix, and costs are crimping profitability even as the company continues expanding internationally. (fortune.com)

Post-earnings, multiple desks have been cutting models and price targets, keeping downside pressure on the shares as the market debates how quickly lululemon can reignite product newness and stabilize demand in the Americas. The stock’s move today fits the broader post-guidance digestion: investors are discounting a slower-growth year and are demanding clearer evidence that margins can recover without sacrificing brand positioning. (benzinga.com)

Near-term, investors will focus on any early-quarter read-throughs on Americas traffic and comp trends, the pace of inventory normalization versus demand, and whether management commentary evolves on tariffs and macro impacts that were explicitly excluded from the published guidance framework. Any additional analyst downgrades/target cuts or signs of heavier-than-expected promotions could amplify volatility around current levels. (fortune.com)