Lululemon lowered its full-year performance forecast, and its share price fell to around $100 in pre-market trading.
According to Reuters, on September 4, sportswear brand Lululemon fell about 18% in pre-market trading, and its share price hit about $100.10. The sell-off stems from the company's downgrade of revenue and earnings forecasts for the fiscal year 2026 released on September 3.
lowered its annual forecast for the second time, and shares are approaching the US$100 mark.
Lululemon now expects revenue in fiscal 2026 to be between US$10.35 billion and US$10.50 billion, a range that represents a year-on-year decline of 5% to 7%. Based on information released in its second-quarter earnings report, the company also lowered its diluted earnings per share guidance to $9.48 to $9.73.
This is the second time this year that the company has cut its full-year forecast. The market reaction has focused directly on whether Lululemon can curb the sales decline it reflected in its latest quarter, especially in its largest regional business.
A reset of guidelines announced on September 4 caused the stock price to fall to about $100.10 in pre-market trading. This adjusted range covers revenue and diluted earnings per share, causing investors to lower their expectations for the company for the rest of fiscal 2026.
Second-quarter sales decline was mainly dragged down by the Americas region.
In the second quarter, Lululemon reported revenue of US$2.416 billion, down 4% from the same period last year. The company said comparable sales fell 9% over the same period.
Compared with the overall results, the contraction in the Americas is more pronounced. Revenue in the region fell 8%, while comparable sales in the Americas plunged 12% during the quarter.
These regional data highlight the weak demand facing incoming CEO Heidi O'Neill. The 12% comparable sales decline in the Americas was higher than Lululemon's overall 9% decline, and the region's revenue decline was twice the company's overall 4% decline.
As a result, the second-quarter earnings release was not only accompanied by a downward revision of full-year financial expectations, but also showed a significant deterioration in its Americas business, which laid the operational background for O'Neill's appointment.

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