- Lululemon Athletica Inc.
- 05 June 2026 13:44:50
Source: Sharecast
Despite saying it had experienced a "solid start to 2026", during which revenues rose 4%, the company said it expects a 2-3% decline in the top line over the second quarter and up to a 1% decrease in full-year sales.
Interim co-chief executive and chief financial officer Meghan Frank said the company has recently been "navigating headwinds".
In comments to analysts following the earnings release, Frank cited "spikes of negative commentary in the media and on social channels with regard to our brand, which had an impact on traffic and overall top line performance". These stories have since "died down and subsided", she claimed.
Meanwhile, a number of recent product launches failed to meet the company's expectations, which failed to "generate the anticipated guest response" in the second quarter.
The downbeat outlook overshadowed a stronger-than-expected first quarter from the brand, during which net revenues rose to $2.47bn from $2.37bn the year before, ahead of the consensus forecast of $2.43bn. Income slumped 3.7% to $276.9m, though earnings of $1.69 per share marginally beat the $1.68 estimate.
Stock futures were around 10.5% lower before the opening bell.