Lululemon Athletica Inc. announced its first-quarter financial results for fiscal 2026, with the athletic apparel retailer lowering its full-year guidance and providing a weak outlook for the current quarter. Interim CEO Meghan Frank attributed the downturn to “negative commentary in the media” and disappointing product launches.
For the first quarter of 2026, compared to the first quarter of 2025:
Net revenue increased 4% to $2.5 billion, or increased 2% on a constant dollar basis.
Americas net revenue decreased 3%, or 4% on a constant dollar basis.
International net revenue increased 22%, or 16% on a constant dollar basis.
For Q2, 2026, Lululemon expects net revenue to be in the range of $2.450 billion to $2.475 billion, representing a decline of 3% to 2%. Diluted earnings per share are expected to be in the range of $1.76 to $1.81 for the quarter.
For FY 2026, the company now expects net revenue to be in the range of $11.000 billion to $11.150 billion, representing a decline of 1% to 0%. Diluted earnings per share are now expected to be in the range of $10.95 to $11.15 for the year.
Meghan Frank, Interim Co-CEO and Chief Financial Officer, stated: “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-CEO, President, and Chief Commercial Officer, stated: “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 recognize 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.”
The company’s shares dropped 11% following the announcement.
By CEO NA Editorial Staff
