Lululemon sinks after cutting forecast as revenue declines
Lululemon stock dropped between 15% and 20% in premarket trading on September 4 after the company issued its second guidance cut of the year. The decline follows weak second quarter fiscal 2026 results and falling demand in the Americas. Shares dipped to $100.1, potentially erasing over $2.5 billion in market capitalization and bringing the year-to-date decline to approximately 41.5%. Investors are reacting to declining revenue and a challenging transition for incoming CEO Heidi O’Neill as the brand struggles with competition and merchandising errors.
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- ✓ Lululemon cut its full-year guidance for the second time this year.
- ✓ The company announced second quarter fiscal 2026 results.
- ✓ Lululemon stock fell between 15% and 20% in premarket trading.
- ✓ Demand in the Americas has fallen.
What changed
Lululemon lowered its fiscal 2026 revenue and earnings outlook for the second time this year.
Live updates
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Lululemon shares plunge after second full-year forecast cut
Lululemon stock dropped between 15% and 20% in premarket trading on September 4 after the company issued its second guidance cut of the year. The decline follows weak second quarter fiscal 2026 results and falling demand in the Americas. Shares dipped to $100.1, potentially erasing over $2.5 billion in market capitalization and bringing the year-to-date decline to approximately 41.5%. Investors are reacting to declining revenue and a challenging transition for incoming CEO Heidi O’Neill as the brand struggles with competition and merchandising errors.
Why it matters
Lululemon is a premium athletic apparel brand known for high-priced performance gear. The company has faced several quarters of falling sales and a heavy reliance on promotional activity to drive volume. This downturn tests the leadership of the new CEO amid mounting competition in the sportswear segment.
What is confirmed
- Lululemon cut its full-year guidance for the second time this year.
- The company announced second quarter fiscal 2026 results.
- Lululemon stock fell between 15% and 20% in premarket trading.
- Demand in the Americas has fallen.
- Heidi O’Neill is the next chief executive.
Still unconfirmed
- Michael Burry views the stock as a generational buying opportunity below $100.
- The stock slipped to $100.1 in premarket activity.
- The year-to-date decline for the stock is about 41.5%.
What to watch next
- Official market capitalization losses following the full trading session
- Details on the new CEO's strategy to address merchandising errors
- Further updates on Americas region demand recovery
confidence 90%Sources used for this update (10)
- CNBC — Lululemon stock plunges 15% on disappointing earnings and outlook
- WSJ — Lululemon Cuts Outlook Again After Another Tough Quarter for Sales
- Lululemon — lululemon athletica inc. Announces Second Quarter Fiscal 2026 Results
- Bloomberg.com — Lululemon Cuts Outlook Again as New CEO’s Challenges Grow
- Yahoo Finance — Lululemon sinks after cutting forecast as revenue declines
- KSL News — Lululemon shares dive as challenges keep investors at bay ahead of new CEO's tenure
- uk.finance.yahoo.com — Stock market today: Dow, S&P 500, Nasdaq futures diverge after blowout jobs report
- blockonomi.com — Lululemon (LULU) Stock: Plunges 20% After Weak Q2 Sales and Guidance Cut
- 247wallst.com — Lululemon Sinks 20% After Second Guidance Cut: Michael Burry Calls It a Fat Pitch Below $100
- www.tradingpedia.com — Lululemon Shares Slide as Second Forecast Cut Tests New CEO
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