Overview
- Lululemon reported fiscal Q1 results on June 4 showing $2.47 billion in revenue and a 38% drop in net income, with adjusted EPS falling to $1.69 from $2.60 a year earlier.
- The company lowered its full‑year fiscal 2026 guidance to $11.0 billion–$11.15 billion in revenue and $10.95–$11.15 in adjusted EPS, a clear pullback from prior targets.
- Margins deteriorated as cost of goods sold rose about 14% year over year, gross profit fell more than 4%, and SG&A increased 12.4% to $1.05 billion, driven by tariffs, higher markdowns and fixed‑cost deleveraging.
- Regional results were mixed with soft Americas traffic and product execution weighing on comps while Mainland China and other international markets delivered strong growth.
- The stock plunged more than 12% after the report to an eight‑year low, investors cited the recent proxy fight with founder Chip Wilson and are watching execution ahead of new CEO Heidi O’Neill’s September start.