Lululemon Shares Decline on Bleak Forecasts

By EC Assets · Published 5 June 2026

Lululemon Athletica shares declined on Friday after the company issued lower quarterly and annual profit outlooks. These forecasts intensified existing concerns regarding the yoga apparel maker's turnaround efforts. Shares dropped 12% in premarket trade on Friday. The company reduced its full-year sales forecast. Lululemon now anticipates fiscal 2026 sales to be between $11 billion and $11.15 billion. This is a decrease from its previous expectation of $11.35 billion to $11.50 billion. The downgrade in its fiscal year 2026 forecast followed a proxy battle with its founder. Lululemon's slowdown was driven by negative media and social media commentary. This commentary affected customer traffic. Challenges cited include tariffs increasing costs, weak consumer spending, and sluggish sales overseas. The company also implemented a style shift. Analysts expressed worries about a lengthy and uncertain turnaround period for Lululemon. Major product refreshes are not expected until late 2027. The company admits that significant work is still required for its turnaround. Americas revenue shows no signs of improvement. Interim co-CEO Meghan Frank noted the ongoing challenges impacting the full-year sales forecast. This article is intended for informational purposes only. It does not constitute investment advice.