March 17 - Lululemon Athletica provided full-year 2026 guidance that came in under analysts' expectations on Tuesday, signaling continued headwinds for the athletic-apparel maker. Management pegged annual revenue at $11.35 billion to $11.50 billion, versus a consensus forecast of $11.51 billion according to data compiled by LSEG. The company also set full-year earnings per share between $12.10 and $12.30, below the $12.58 average estimate among analysts.
Investors reacted in extended trading, with the shares falling 2.4% after the guidance was released. The guidance update arrives amid a period of corporate upheaval and intensifying competition that the company has been navigating for months.
Company executives and observers point to a sequence of developments that have weighed on Lululemon's momentum. The retailer experienced several months of share-price weakness and criticism over a perceived slowdown in design innovation. That period of underperformance culminated in the departure of CEO Calvin McDonald in December and the launch of a proxy contest by founder Chip Wilson seeking to reshape the board.
Once regarded as an early leader in the athleisure market, the company has seen market share erosion against larger sportswear competitors and newer niche players. The firm has been losing ground to established brands such as Nike, as well as to upstarts including Alo Yoga and Vuori, all of which were cited in the company commentary accompanying the guidance release.
Alongside the corporate governance tussle and management turnover, the guidance shortfall highlights the operating pressures the company is confronting: sales expectations marginally below analyst projections and an EPS range that does not match the current consensus.
The company release also included promotional commentary about model-based equity screening: an AI-based picks product evaluates Lululemon alongside thousands of firms using more than 100 financial metrics to assess fundamentals, momentum and valuation. That commentary cited prior notable returns from the model, naming Super Micro Computer at +185% and AppLovin at +157% as examples.
Market participants will likely weigh the guidance alongside the ongoing proxy fight and recent executive change as they reassess Lululemon's near-term outlook. The company's updated revenue and profit ranges provide concrete targets against which upcoming quarters will be measured.
Summary
Lululemon announced 2026 revenue and EPS forecasts that fall short of analyst averages, while the company continues to face competitive pressure and a founder-led attempt to change its board following the CEO's exit in December. Shares dipped in after-hours trading in response to the guidance.