Home / Business and Economy / Lululemon Slashes 2026 Forecast Amidst Sales Slump
Lululemon Slashes 2026 Forecast Amidst Sales Slump
5 Jun
Summary
- Company lowers 2026 net revenue forecast, now expects decline.
- Americas market net revenue dropped 3%, impacting overall sales.
- Founder dispute resolved; two new directors joining board soon.
Lululemon athletica has revised its full-year 2026 financial outlook downwards, now expecting net revenue between $11.0 billion and $11.15 billion, a potential decrease of up to 1%. This revised forecast comes after the company reported net revenue of $2.5 billion for the quarter ending May 3, 2026, a 4% increase year-over-year.
While the international business demonstrated robust growth with net revenue up 22%, the Americas market experienced a 3% decline in net revenue. Consequently, comparable sales saw a modest 1% increase overall. Gross profit fell by 3% to $1.3 billion, and operating income dropped sharply by 37% to $276.9 million.
Lululemon's Co-CEO and CFO, Meghan Frank, noted that while the start to 2026 was solid, recent headwinds have necessitated the outlook adjustment. The company is implementing additional actions to strengthen its product engine and strategic position. This comes after Lululemon reached a cooperation agreement with founder Chip Wilson, resolving a governance dispute and allowing for two new directors to join its board in 2026.
