Lululemon is pulling back on its expansion plans as the athletic-wear retailer struggles with falling sales.The Canadian company, known for its premium leggings and yoga pants, now plans to open about 35 new company-operated stores this year, down from 40 locations previously expected, according toRetail Dive. It is also scaling back pop-up shops, planning to have about 40 locations by the end of 2026. There were 65 pop-ups at the end of last year.It’s been a difficult second financial quarter for the retailer. Lululemon's revenue fell 4 percent to $2.42 billion, while sales at stores open for at least a year dropped 9 percent, according to the outlet. Sales in the Americas, its most important market, fell 8 percent. One of Lululemon's biggest problems is its signature leggings. Sales of women's leggings plunged 20 percent from a year earlier as shoppers have increasingly moved toward looser-fitting styles. The company is responding by offering more wide-leg pants, joggers and other "away-from-body" designs. The Canadian company, known for its premium leggings and yoga pants, now plans to open about 35 new company-operated stores this year, down from 40 locations previously expected (AFP/Getty)"We remain ​committed to the category (leggings), but there are shifts occurring with guests looking for away-from-body silhouettes," interim CEO Meghan Frank said on a post-earnings call last week, Reuters reported. Lululemon is also facing tougher competition from newer athletic-wear brands such as Alo Yoga and Vuori, which have been gaining traction with shoppers, Neil Saunders, a retail analyst and managing director at GlobalData Retail, told CBS News in February. Product recalls and design issues have also hurt Lululemon’s leggings business. In January, the company pulled its $108 “Get Low” leggings from its website after customers complained they were see-through.The company's struggles have also hit its stock value. Lululemon’s stock took a nearly 18 percent hit Friday, falling to an eight-year low after weak Americas sales forced the company to lower its full-year forecast, according to the New York Post. ‘We remain ​committed to the category (leggings), but there are shifts occurring with guests looking for away-from-body silhouettes,’ the interim CEO said (AFP/Getty)Lululemon has now cut its full-year forecast for the second time this year. It expects revenue of $10.35 billion to $10.5 billion, down from its previous forecast of $11 billion to $11.15 billion. The retailer is also entering a new chapter in its leadership. Heidi O'Neill, a former Nike executive, became CEO Tuesday, taking over a company that is trying to win back customers and reignite growth. “When Heidi O’Neill finally takes the helm as Lululemon CEO next week, she will be in the unenviable position of leading a company that is in a worse position than when she accepted the job,” Emarketer principal analyst Sky Canaves told Retail Dive Thursday.