Lululemon Trims Full-Year Revenue View to $11–11.15B, Q2 Sales Forecast Falls Short
LULU•Lululemon cut its full-year revenue forecast to $11–$11.15 billion and lowered adjusted EPS guidance to $10.95–$11.15. Its Q2 revenue outlook of $2.45–$2.48 billion and EPS range of $1.76–$1.81 both miss expectations, triggering a stock sell-off.
1. First Quarter Performance
Lululemon posted Q1 revenue of $2.47 billion, a 4% increase year-over-year, slightly above the $2.44 billion consensus. Adjusted EPS came in at $1.69, matching estimates, while same-store sales grew 1%, outperforming the expected 0.1% decline.
2. Weaker Second Quarter Outlook
For Q2 2026, management forecasts net revenue of $2.45–$2.48 billion versus the $2.6 billion consensus and adjusted EPS of $1.76–$1.81 against $2.69 street estimates, citing headwinds impacting sales and margins.
3. Full-Year Guidance Reduction
The company trimmed its full-year revenue range to $11.0–$11.15 billion from $11.35–$11.5 billion and lowered adjusted earnings to $10.95–$11.15 per share from $12.10–$12.30, reflecting slower demand trends.
4. Leadership Shift and Strategic Actions
Incoming CEO Heidi O’Neill will assume her role on September 8 as interim co-CEO and CFO Meghan Frank highlighted initiatives to reposition product assortments and strengthen Lululemon’s innovation pipeline in response to market pressures.
