Lululemon cuts annual outlook and issues weak Q2 guidance, citing undisclosed 'headwinds'

Customers enter a Lululemon store inside a shopping mall on May 23, 2026, in Shenzhen, Guangdong Province, China. Cheng Xin | Getty Images Lululemon 's troubles are far from over. The athletic apparel retailer lowered its full-year guidance and issued a weak current quarter outlook on Thursday as interim CEO Meghan Frank pointed to undisclosed "headwinds." "We have been navigating headwinds that have led us to adjust our outlook for the full year," Frank said in a news release. "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." The company's shares dropped more than 7% in extended trading following the report. Lululemon's stock has plunged about 40% this year as of Thursday's close. Lululemon is now expecting fiscal 2026 sales to be between $11 billion and $11.15 billion, down from a previous range of between $11.35 billion and $11.50 billion. Analysts were expecting full-year sales of $11.48 billion, according to LSEG. Lululemon also cut its earnings guidance by more than $1 per share. It's now expecting earnings per share to be between $10.95 and $11.15 for the year, down from a previous range of $12.10 to $12.30. Analysts were expecting $12.30 per share, according to LSEG. The current quarter doesn't look much better. Lululemon is expecting sales to be between $2.45 billion and $2.48 billion, below expectations of $2.60 billion, according to LSEG. …