Lululemon Stock Drops 18% to 8-Year Low After Third Guidance Cut
Nasdaq-listed Lululemon Athletica (LULU) inventory dropped 18% in after-hours buying and selling on September 3. Shares fell to beneath $100 after the corporate’s third steerage reduce of 2026 overshadowed a revenue beat.
The decline pushed shares to their lowest degree in roughly eight years, beneath the 52-week low. LULU now trades about 80% beneath its all-time high of $511.29, set in December 2023.
Lululemon’s Third Guidance Cut of the Year
Lululemon has trimmed its full-year outlook thrice since March. Each cut followed 1 / 4 that beat earnings estimates however missed on gross sales.
March steerage referred to as for $11.35 billion to $11.50 billion in income. June steerage was reduce to $11.00 billion to $11.15 billion. September steerage now stands at $10.35 billion to $10.50 billion.
Second-quarter income fell 4% 12 months over 12 months to $2.42 billion, lacking forecasts. Comparable gross sales dropped 10% globally and 12% in North America.
Lululemon Under Pressure
The repeated cuts have coincided with a turbulent 12 months for the model. Founder Chip Wilson waged a proxy fight in opposition to the board, and former chief govt Calvin McDonald departed in January.
In May, a Great Wall of China occasion featured a drum mistaken for a Japanese instrument, sparking backlash. Rivals Alo Yoga and Vuori have continued to take share in North America.
Interim co-chief govt and chief monetary officer Meghan Frank pointed to reputational harm as an element behind the most recent slowdown.
“We confronted destructive commentary within the media and social channels, which impacted site visitors and softer than deliberate response to some new product launches.”
(Meghan Frank, interim co-CEO and CFO, Lululemon Athletica)
Incoming chief govt Heidi O’Neill begins subsequent week and inherits a turnaround plan that has but to present outcomes. Lululemon guided third-quarter income down 10% to 11% 12 months over 12 months.
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