Lululemon slides as US sales weaken, outlook lowered

Lululemon Athletica

05/06/2026 15:55

Updates
** Shares of athleisure brand Lululemon LULU.O slumped as much as 12.5% to an eight-year-low of $109.36 
** The firm on Thursday lowered its full-year profit forecast and projected Q2 earnings well below Wall Street expectations, as its products struggled to attract shoppers in its key U.S. market 

    ** "Product launches are not working and Lulu needs a new design directive and now China, the last growth market, is meaningfully decelerating" - BNP Paribas
  
** Heidi O'Neill set to take over as LULU CEO in September 

    ** Following the results, more than 10 brokerages slashes PT while two downgrades the stock - data compiled by LSEG
  
** 33 analysts rate LULU "hold" on average; median PT is $165 - LSEG-compiled data 
** As of last day's close, stock down ~40% down YTD

 (Reporting by Kanishka Ajmera and Sanskriti Shekhar in Bengaluru)
 ((mail to: Kanishka.Ajmera@thomsonreuters.com))