Stock Impact: Shares fell more than 9% in after‑hours trading following the announcement of reduced full‑year guidance.
Financial Results: Q1 2026 earnings per share (EPS) were $1.69 on revenue of $2.47 bn, matching analyst EPS expectations ($1.69) and beating revenue expectations ($2.44 bn).
Sales Performance: Comparable sales increased 1% year‑over‑year, driven by a 13% rise in international sales; however, Americas comparable sales declined 5%.
FY2026 Guidance Revision: EPS guidance lowered to $10.95‑$11.15 per share (previously $12.10‑$12.30) and revenue guidance to $11.0‑$11.15 bn (previously $11.35‑$11.50 bn).
Q2 2026 Outlook: Projected EPS $1.76‑$1.81 and revenue $2.45‑$2.475 bn, both below analyst expectations.
Headwinds Cited: Elevated interest rates, persistent inflationary pressures, and ongoing geopolitical crises are affecting discretionary consumer spending, especially in the Americas.
Management Commentary: Interim co‑CEO and CFO Meghan Frank highlighted a “sequential improvement in full‑price sales” despite the broader challenges.
Leadership Changes: In April, Nike veteran Heidi O’Neill was appointed as the next CEO.
Governance Update: In May, Lululemon resolved a proxy battle with founder and major shareholder Chip Wilson, agreeing to appoint two of his board nominees.
