Lululemon cuts outlook as stock plunges on tough quarter and CEO’s challenges

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Lululemon Athletica Inc. is experiencing a sales slowdown and disappointing quarterly results as the company struggles to turn its business around.

The activewear retailer has lowered its full-year outlook for a second straight quarter. Annual sales are now expected to be between $10.35 billion and $10.50 billion, down from the previous guidance of $11.00 billion to $11.15 billion.

These financial pressures are driven by weakening demand in North America and signs of strain in the company's growth in China.

The ongoing downturn presents deep challenges for incoming Chief Executive Officer Heidi O’Neill. Reflecting these struggles, Lululemon shares have declined more than 40 per cent so far in 2026.

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