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Lululemon $LULU -0.88% cut its full-year revenue and profit outlook on Thursday after negative brand commentary on social media and product launches that failed to resonate with shoppers worsened an already difficult stretch for the company in North America.
The company now expects fiscal 2026 net revenue of $11 billion to $11.15 billion, representing a decline of 1% to flat compared with the prior year. That is down from previous guidance of $11.35 billion to $11.50 billion, which projected growth of 2% to 4%. Analysts were expecting full-year revenue of $11.48 billion, according to CNBC. Lululemon also cut its full-year earnings per share guidance to a range of $10.95 to $11.15, down from a prior range of $12.10 to $12.30. Analysts had expected $12.30 per share.
The current quarter looks equally bleak. Lululemon said it expects second-quarter net revenue of $2.45 billion to $2.48 billion, a decline of 3% to 2%, against analyst expectations of $2.60 billion. Earnings per share guidance of $1.76 to $1.81 fell well short of the $2.68 analysts expected.
Negative commentary spiking across social media and press coverage hurt store traffic and dragged on overall sales, interim co-CEO and CFO Meghan Frank told analysts. Among the specific triggers, Frank cited Chip Wilson's public criticism during the proxy contest and consumer concerns that had emerged around the materials used in certain products. A newly introduced yoga collection was among the launches that fell short of expectations, failing to drive the broader sales boost the company had anticipated.
