Lululemon slashes annual outlook as tariff headwinds, North America weakness weigh

Lululemon Athletica

04/06/2026 21:16

Overview
Technical athletic apparel retailer's Q1 revenue rose 4%, beating analyst expectations
Q1 diluted EPS fell to $1.69 from $2.60 a year earlier
Company repurchased 2.2 mln shares for $358.3 mln in Q1

Outlook
Lululemon sees Q2 revenue between $2.45 bln and $2.475 bln, down 3% to 2%
Company expects Q2 diluted EPS of $1.76 to $1.81
Lululemon now expects 2026 revenue of $11.0 bln to $11.15 bln, down 1% to 0%
Company expects 2026 diluted EPS of $10.95 to $11.15

Result Drivers
INTERNATIONAL GROWTH - Co said international net revenue rose 22%, led by China, helping offset declines in the Americas
AMERICAS WEAKNESS - Americas net revenue fell 3% and comparable sales fell 5%, with management citing ongoing headwinds and efforts to drive improvement
MARGIN PRESSURE - Gross margin fell 410 basis points and operating margin dropped 730 basis points, contributing to lower profitability

Company press release: ID:nBw6BYsSra

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$2.5 bln
$2.43 bln (23 Analysts)
Q1 EPS
 
$1.69
 
Q1 Comparable Sales Growth
 
1%
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 29 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the apparel & accessories peer group is "buy"
Wall Street's median 12-month price target for Lululemon Athletica Inc is $173.00, about 37.3% above its June 3 closing price of $126.03
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 15 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)