Lululemon plunges to eight-year low after annual outlook cut, CEO transition concerns

lululemon athletica

04/09/2026 16:07

Updates
** Shares of athletic wear maker Lululemon Athletica LULU.O fall as much as 19.5% to over eight-year low of $97.99
** Co slashed its full-year forecasts again on Thursday as demand weakened in North America and China, its two largest markets 
** Reports Q2 revenue of $2.42 billion, missing estimates of $2.46 billion, as per data compiled by LSEG
** At least 12 brokerages cut LULU's price target after the results 
** Product launches in North America, its biggest market, were not as successful as planned while China growth also slowed, says Dana Telsey, analyst with Telsey Advisory Group 
** Merchandising and marketing missteps, rather than just macro weakness, are driving the company's worsening performance and investors should wait for incoming CEO O'Neill's strategy, brokerage Oppenheimer says in a note
** LULU down about 41% YTD, as of last close

(Reporting by Angela Christy, Akriti Shah in Bengaluru)
((akriti.shah@thomsonreuters.com ; X, formerly Twitter: @AkritiShahh))