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Lululemon Cuts 2026 Outlook, Shares Fall 11%

6/5/2026

28 3 Full Breakdown

Summary

Lululemon Cuts Outlook

Lululemon cut its 2026 outlook to $11 billion-$11.15 billion and EPS to $10.95-$11.15.
The revision drove shares down 11% in trading, leaving the stock 40% lower YTD.
Q1 revenue hit $2.5 billion, up 4%, with income falling 38% to $195 million and EPS $1.69.
Comparable sales fell 6% in North America, rose 8% abroad, yielding a 2% decline.
Gross margin slipped to 54.2% after tariffs, with Heidi O’Neill set to become CEO in September.

Summary

Lululemon Shortens Cycle

Lululemon reduced its product development cycle from 18-24 months to 15-16 months to speed releases.
Competition from fast-growing upstarts Alo Yoga and Vuori is eroding Lululemon’s market share.
Guggenheim Securities analyst Simeon Siegel warned the brand is overstretched and may see continued revenue declines in North America.
Interim co-CEO Meghan Frank said the company will need additional seasonal clearance to support sales.

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Lululemon Cuts Outlook

Lululemon cut its 2026 outlook to $11 billion-$11.15 billion and EPS to $10.95-$11.15.
The revision drove shares down 11% in trading, leaving the stock 40% lower YTD.
Q1 revenue hit $2.5 billion, up 4%, with income falling 38% to $195 million and EPS $1.69.
Comparable sales fell 6% in North America, rose 8% abroad, yielding a 2% decline.
Gross margin slipped to 54.2% after tariffs, with Heidi O’Neill set to become CEO in September.

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