Lululemon lowered its full-year sales and earnings guidance due to undisclosed challenges, despite beating Wall Street expectations in its fiscal first quarter. The company now expects 2026 sales between $11 billion and $11.15 billion, down from prior estimates, and earnings per share between $10.95 and $11.15, below analyst forecasts. Current quarter outlook is weak, with sales and earnings expected below estimates. Interim CEO Meghan Frank cited headwinds and plans to reposition the business, while new CEO Heidi O'Neill, starting in September, is expected to lead strategic changes. Shares fell over 7% in after-hours trading amid concerns over ongoing challenges and reliance on discounts hurting the brand.
