Lululemon Revises Forecast Amidst Media Criticism and Sales Struggles

WHO:

CNBC - Meghan Frank is the interim CEO of Lululemon.

Lululemon - The company is an athletic apparel retailer.

Lululemon - Chip Wilson is the founder of Lululemon.

WHAT:

CNBC - Lululemon lowered its full-year sales guidance to between $11 billion and $11.15 billion.

CNBC - The previous sales guidance was between $11.35 billion and $11.50 billion.

CNBC - Lululemon's earnings per share guidance was cut to between $10.95 and $11.15, down from $12.10 to $12.30.

Lululemon - The company reported a net income of $195 million for the first quarter.

Lululemon - The diluted earnings per share for the first quarter was $1.69.

Lululemon - Revenue for the first quarter was $2.47 billion, a 4% increase from $2.37 billion a year earlier.

Lululemon - Comparable sales grew 1% in the first quarter.

Lululemon - The company's shares dropped 11% in extended trading following the report.

Lululemon - The stock has plunged about 40% this year as of the report's close.

Lululemon - The company expects sales for the current quarter to be between $2.45 billion and $2.48 billion.

WHERE:

CNBC - Lululemon's largest market is North America.

Lululemon - International sales grew 22% during the quarter.

WHEN:

Lululemon - The first quarter of fiscal 2026 ended on May 3, 2026.

Lululemon - The company expects to release its second quarter results on June 4, 2026.

WHY:

CNBC - Meghan Frank cited "negative commentary in the media" and disappointing product launches as reasons for the company's struggles.

CNBC - The decline in sales was attributed to a proxy contest with founder Chip Wilson and questions about product composition.

HOW:

CNBC - Lululemon is taking actions to reposition its product offerings and strengthen its product engine.

Lululemon - The company has reduced product lead times from 18-24 months to 15-16 months and aims to further reduce it to between 12 and 14 months.

(UPDATED June 5, 2026 01:44 UTC)

Meghan Frank has stepped in as the interim CEO of Lululemon, the well-known athletic apparel retailer founded by Chip Wilson. The company recently lowered its full-year sales guidance to between $11 billion and $11.15 billion, down from the previous estimate of $11.35 billion to $11.50 billion, and reported a net income of $195 million for the first quarter, with shares dropping 11% in extended trading following the news. Lululemon is now focusing on repositioning its product offerings and has made significant changes to reduce product lead times, aiming to cut them down to between 12 and 14 months.