Lululemon Stock Sinks 18% as Forecast Cut Deepens Turnaround Concerns

Lululemon shares fell about 18% in premarket trading on September 4 after the athleticwear company cut its full-year forecast for a second time, with the stock reaching approximately $100.10, according to Reuters. The sell-off followed a reduced fiscal 2026 revenue and earnings outlook issued by the company on September 3.

Second 2026 Forecast Cut Sends Shares Toward $100

Lululemon now expects fiscal 2026 revenue of between $10.350 billion and $10.500 billion, a range representing a decline of 5% to 7%. It also lowered its diluted earnings-per-share guidance to $9.48 to $9.73, according to its second-quarter earnings release.

The revised outlook is the company’s second full-year forecast reduction this year. The market reaction put the immediate focus on whether Lululemon can arrest the sales decline reflected in its latest quarter, particularly in its largest regional business.

Shares reaching roughly $100.10 in premarket trading marked the direct consequence of the guidance reset reported on September 4. The reduced range covers both revenue and diluted EPS, leaving investors with lower company expectations for the remainder of fiscal 2026.

Second-Quarter Sales Decline Was Led by the Americas

For the second quarter, Lululemon reported revenue of $2.416 billion, down 4% from a year earlier. Comparable sales declined 9% over the same period, the company said.

The Americas accounted for a sharper contraction than the group-wide result. Revenue in the region fell 8%, while Americas comparable sales dropped 12% in the quarter.

Those regional figures highlight the demand weakness facing incoming CEO Heidi O’Neill. The 12% Americas comparable-sales decline was steeper than Lululemon’s overall 9% comparable-sales fall, while the regional revenue decline was double the company-wide 4% reduction.

The second-quarter release therefore paired a lower full-year financial outlook with a pronounced deterioration in its Americas business, setting the operational backdrop for O’Neill’s arrival.

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