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Lululemon has lowered its financial outlook for the full year after experiencing a slowdown in profitability and weaker consumer demand across the Americas during the first quarter ended 3 May 2026.
The apparel company now expects its net revenue for 2026 to land between $11bn (£8.18bn) and $11.15bn (£8.29bn), representing a decline of 1% to 0%.
Full-year diluted earnings per share are forecasted to be in the range of $10.95 (£8.14) to $11.15 (£8.29).
During the first quarter, total net revenue increased 4% to $2.5bn (£1.86bn) compared with the same period last year.
However, net revenue in the Americas market decreased 3%, while total comparable sales fell 2% on a constant dollar basis.
The company also encountered pressure on profitability as first-quarter gross profit dropped 3% to $1.3bn (£970m), with the gross margin contracting to 54.2%. Additionally, operating income also fell 37% to $276.9m (£205.8m).
During the three-month period, the business expanded its corporate retail footprint by opening five net new company-operated stores during the quarter, bringing its global estate to 816 locations.
For the second quarter of 2026, the company expects net revenue to be in the range of $2.45bn (£1.82bn) to $2.47bn (£1.84bn), representing a decline of 3% to 2%.
Diluted earnings per share are expected to be in the range of $1.76 (£1.31) to $1.81 (£1.35) for the quarter. This assumes a tax rate of approximately 30%.
Meghan Frank, interim co-chief executive, said: “We experienced a solid start to 2026 as our teams executed with speed, agility, and discipline. Our work to drive improvements in North America resulted in some positive signals in the quarter, including a sequential improvement in full-price sales.
“More recently, we have been navigating headwinds that have led us to adjust our outlook for the full year. We have assessed the business and are taking additional actions to reposition where needed and further strengthen our product engine. We remain confident in our path forward.”
André Maestrini, interim co-chief executive, added: “During the quarter, we continued to grow our lululemon community as we entered new markets and elevated our product, brand, and guest experiences around the world. This work included delivering successful product capsules and activations across train, tennis, and run, as well as implementing enhancements across our store fleet and digital channels that we will build upon in the months ahead. We recognise that we have more work to do, and our teams remain focused on our priorities as we continue our efforts to reignite growth and realize lululemon’s full potential.”
