Lululemon cuts 2026 revenue forecast to $10.35B

On 4 September 2026, Reuters reported that Lululemon cut its full-year revenue and profit forecasts for the second time this year. The change came days before incoming CEO Heidi O'Neill, a former Nike executive, took leadership on 8 September. The company now expects fiscal 2026 revenue of $10.35 billion to $10.5 billion, representing an annual drop of 5% to 7%, down from its previous guidance of $11.0 billion to $11.15 billion.

The cut followed a second quarter where revenue fell 4% to $2.42 billion and global comparable sales dropped 9%. Americas revenue fell 8% and leggings sales dropped roughly 20%, though international revenue rose 4%. Following the results, Lululemon shares fell 18% to an eight-year low, taking year-to-date losses to around 52%. For the third quarter, management projects a revenue decline of 10% to 11%.

Market data from M Science showed Lululemon's athleisure market share dropped 10 percentage points to 43.9% in August. Competitors gained ground over the same period, with Alo Yoga up 5.9 percentage points and Vuori advancing 2.2 percentage points. The company also expanded store square footage by 11% during the second quarter despite the slowdown.

Lululemon ended the second quarter with $1.4 billion in cash and equivalents. The quarter's 60.5% gross margin included $134.5 million in tariff refunds alongside $4.1 million in related interest. The stock trades at roughly 11.5 times forward earnings, compared with 20.76 times for Nike and 13.41 times for Adidas.