Lululemon Plunges 20% on Glum Forecast
PUBLISHED Sep 4, 2026, 8:19 AM ET
Lululemon Athletica shares dropped twenty percent in premarket trading after the sportswear manufacturer issued a weak financial forecast for the current quarter. The company projected earnings between ninety-three and ninety-eight cents per share on revenue of two billion twenty-nine million to two billion thirty-two million dollars, missing analyst expectations of two dollars and forty cents per share and two billion five hundred thirty million dollars in revenue. The downward revision reflects intensifying competition within the athletic apparel market and ongoing struggles to sustain historical growth rates. Management adjustments include the recent appointment of Chief Executive Officer Heidi O'Neill, who faces the task of reversing sales declines and refreshing the product lineup. Investors responded swiftly to the lower guidance, triggering extended after-hours selling that deepened into premarket losses. The announcement highlights ongoing headwinds for major retail brands navigating cautious consumer spending patterns and aggressive market share challenges from emerging direct-to-consumer competitors across the United States.
By Daniel Hayes | JQJO News
- Articles Published:
- 28
- Right Leaning:
- 1
- Left Leaning:
- 3
- Neutral:
- 24
- Distribution:
- Left 11%, Center 86%, Right 4%
Left: Focuses on corporate consumer spending shifts and retail worker pressures. Center: Reports financial metrics, analyst estimate misses, and direct market reactions. Right: Emphasizes market competition, executive leadership effectiveness, and shareholder value creation.
Lululemon Athletica issued weaker quarterly guidance during earnings release on March twenty-first. https://corporate.lululemon.com/media/investor-relations
Coverage of Story:
From Left
Lululemon Stumbles as High-End Retail Faces Pressure
New York Times Washington Post The IndependentFrom Center
Lululemon shares slump after dismal quarterly sales forecast
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