Lululemon cuts 2026 outlook again as stock tumbles before new CEO arrives

Lululemon stunned investors by cutting its 2026 revenue and earnings guidance after a Q2 where sales fell and comparable-store performance weakened, with second-quarter revenue down 4% to $2.4 billion and comps down around 9%. The company now expects 2026 revenue to fall about 5% to 7% and GAAP earnings per share of roughly $9.48 to $9.73, sending the stock lower in after-hours and extended trading by about 15%–20%. The Americas region was the weakest, with deeper declines contributing to the gloomy outlook, as the new CEO-ready leadership under Heidi O’Neill prepares to steer a turnaround. Analysts and observers noted the broad challenges, including competitive pressure from newer brands and ongoing demand softness, while management emphasized prudent planning and disciplined expense management. Despite mixed quarterly metrics previously, investor focus remains on management’s ability to revive momentum under the incoming leadership and sustain growth through product, marketing, and efficiency efforts. The development follows a year of corporate headwinds, including a proxy fight settlement and leadership changes that add to the uncertainty surrounding the turnaround.