Lululemon lowers annual forecast – shares collapse

Angelika Ahrens

Lululemon lowers annual forecast – shares collapse

Canadian sportswear maker Lululemon cut its sales and profit forecasts for the current fiscal year on Thursday, spooking investors. The company's shares fell around 15 percent in after-hours trading. For the 2026 financial year, Lululemon now expects a decline in sales of five to seven percent, after calculating at best with stagnating sales or a minus of up to one percent. Earnings per share are expected to be between $9.48 and $9.73, the company said. Lululemon had promised $10.95 to $11.15.

The lowered expectations underscore the challenges for new CEO Heidi O'Neill, who takes office next week. The former Nike executive is grappling with weakening demand and increasing competition from emerging brands like Alo Yoga and Vuori in the key North American market. Since the beginning of 2025, Lululemon shares have lost almost 69 percent of their value. The company recently settled a bitter power struggle with its founder, Chip Wilson.