No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Lululemon Athletica's stock was set to tank on Friday after the premium athleisure brand disappointed with its first-quarter results after the closing bell the previous session, as it lowered its outlook for the full year.
Despite saying it had experienced a "solid start to 2026", during which revenues rose 4%, the company said it expects a 2-3% decline in the top line over the second quarter and up to a 1% decrease in full-year sales.
Interim co-chief executive and chief financial officer Meghan Frank said the company has recently been "navigating headwinds".
In comments to analysts following the earnings release, Frank cited "spikes of negative commentary in the media and on social channels with regard to our brand, which had an impact on traffic and overall top line performance". These stories have since "died down and subsided", she claimed.
Meanwhile, a number of recent product launches failed to meet the company's expectations, which failed to "generate the anticipated guest response" in the second quarter.
The downbeat outlook overshadowed a stronger-than-expected first quarter from the brand, during which net revenues rose to $2.47bn from $2.37bn the year before, ahead of the consensus forecast of $2.43bn. Income slumped 3.7% to $276.9m, though earnings of $1.69 per share marginally beat the $1.68 estimate.
Stock futures were around 10.5% lower before the opening bell.
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.