New York, June 14, 2026, 10:19 EDT
- Lululemon shares dropped 2.5% Friday to end at $118.77. The broader U.S. market finished higher.
- The stock is still down more than 50% from its 52-week high. Investors are looking at weak Americas sales and a lower outlook for 2026.
- Management is looking to speed up product development and push harder overseas, while Heidi O’Neill takes over as CEO in September to try to get momentum back.
Lululemon Athletica shares lost 2.52% Friday, finishing at $118.77. That move came as the S&P 500 added 0.50% and the Dow gained 0.70%. Shares are now down 52.91% from the 52-week high of $252.24 hit on July 2. Volume trailed the average at 2.8 million shares, MarketWatch data show.
Lululemon shares slid again as the company came off a rough patch after investors reacted to its first-quarter numbers and a soft full-year outlook. The athleisure retailer posted Q1 revenue of $2.5 billion, up 4%, or 2% when adjusting for currency. Comparable sales gained 1% but slipped 2% on a constant-dollar basis. Diluted EPS landed at $1.69, down from $2.60 a year ago, with gross margin dropping 410 basis points to 54.2%.
Lululemon is feeling the pressure in its main Americas market. Net revenue for the Americas slipped 3%, or 4% in constant dollars. Comparable sales for the region were down 5%, and down 6% on a constant-dollar basis. International revenue climbed 22%, or 16% in constant dollars, but the international gains could not shake investor worries about the slowdown at home.
Lululemon cut its 2026 forecast after seeing the slowdown. The company now sees Q2 revenue at $2.450 billion to $2.475 billion, down 3% to 2%. Diluted EPS guidance is $1.76 to $1.81. For the year, Lululemon projects revenue of $11.000 billion to $11.150 billion, which would be down 1% or roughly flat. Full-year diluted EPS is now pegged at $10.95 to $11.15.
Lululemon’s interim co-CEO and CFO Meghan Frank said in the earnings release that the company has “been navigating headwinds that have led us to adjust our outlook for the full year.” Frank also said Lululemon is taking “additional actions to reposition where needed and further strengthen our product engine.” Interim co-CEO, president and chief commercial officer André Maestrini said Lululemon knows there is “more work to do” as it looks to “reignite growth.” Lululemon Corporate
Lululemon’s products are still having trouble bringing U.S. shoppers back, Reuters reported, with higher tariffs, bigger spending and weaker revenue trends darkening the picture. Frank told analysts slower-than-expected revenue “will necessitate additional seasonal clearance.” Guggenheim Securities analyst Simeon Siegel told Reuters, “The company has a strong brand, but an overstretched one,” and warned North America revenue could keep slipping as Lululemon tries to update its offer and brand story. Reuters
Lululemon shares remain under pressure as investors question how quickly the retailer can turn things around. The company has said it wants to speed up product creation and bring out new items faster. Heidi O’Neill, who used to work at Nike, is set to take over as CEO and join the board on September 8. According to Lululemon, O’Neill will focus on faster product launches, making the brand connect more deeply, and pushing for growth outside the home market.
Lululemon’s stock traded cautiously on Friday. Investors did not move despite the company’s strong cash, ongoing profits and push overseas. All eyes turn to new products and Q2 sales, which could show if North America demand is steadying before O’Neill steps in as CEO in September.
