Lululemon slides as outlook cut, CEO transition adds to competitive worries

lululemon athletica

04/09/2026 09:07

** Shares of Lululemon Athletica LULU.O fall nearly 18% to $99.88 premarket
** Athletic wear maker on Thursday slashed its full-year forecasts again, underscoring that incoming CEO Heidi O'Neill has her work cut out — to win back shoppers from newer rivals by revamping the athleisure brand's product line
** Piper Sandler says "we are surprised that weakness in traffic and conversion is similar in both ecomm and stores, despite ecomm still being more promotional"
** Brokerage adds that, while Heidi O'Neill starts next week, international unwind is still ahead, while fixed cost structure is elevated  
** Co reported Q2 revenue of $2.42 bln. Analysts on average expected $2.46 bln, according to data compiled by LSEG.
** Following the results, at least eleven brokerages cut PT on the stock, with Piper Sandler setting the Street-low target of $80, according to LSEG data
** As of the last close, co is down about 41% this year

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