Lululemon Plunges 11% After Cutting Q2 and Full-Year Revenue Guidance
LULU•Lululemon’s stock plunged over 11% after the athletic apparel retailer lowered fiscal Q2 revenue guidance to $2.45B–$2.48B, a 2–3% year-over-year decline, and cut full-year sales outlook to $11.0B–$11.15B from $11.35B–$11.5B. Co-CEO Meghan Frank blamed spikes of negative media commentary and underperforming new product launches for softer traffic and sales.
1. Stock Performance and Forecast Adjustments
Lululemon’s shares fell over 11% as the company forecast Q2 revenue of $2.45B–$2.48B, down 2%–3% year-over-year, and trimmed full-year revenue to $11.0B–$11.15B from $11.35B–$11.5B. The retailer also anticipates adjusted EPS of $1.76–$1.81 for Q2.
2. Brand Sentiment and Product Challenges
Interim co-CEO and CFO Meghan Frank identified two main headwinds: spikes of negative media and social commentary that hindered store traffic and uneven performance from new product launches, including a yoga apparel collection that failed to generate broader sales momentum.
3. Analyst Cautions and Leadership Handoff
Retail analyst Dana Telsey warned of potential double-digit U.S. sales declines and increased discounting over the next quarter, suggesting a multi-quarter recovery timeline as the incoming CEO tackles demand, product and brand challenges.
