Lululemon Athletica shares dropped 12% in premarket trade on Friday after bleak quarterly and annual profit outlooks deepened concerns over the yoga apparel maker's turnaround amid slowing U.S. demand, competition and tariff costs.
lululemon athletica inc. (LULU) Q1 2027 Earnings Call Transcript
The headline numbers for Lululemon (LULU) give insight into how the company performed in the quarter ended April 2026, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Lululemon (LULU) came out with quarterly earnings of $1.69 per share, beating the Zacks Consensus Estimate of $1.67 per share. This compares to earnings of $2.6 per share a year ago.
lululemon athletica NASDAQ: LULU reported modest first-quarter revenue growth but lowered its fiscal 2026 outlook, citing softer recent sales trends, negative media and social commentary around the brand, and product launches that did not meet expectations.
Problems continue to add up for Lululemon, as the yoga-wear maker on Thursday trimmed its full-year forecast to account for a potential dip in sales this year.
The athleisure company now expects sales to be down to flat this year, compared with its prior forecast for growth. It also cut its profit outlook.
Lululemon Athletica Inc (NASDAQ:LULU) shares fell about 10% in after-hours trading on Thursday after the athletic apparel retailer issued guidance pointing to a potential decline in sales, despite reporting first-quarter results that narrowly topped Wall Street expectations. The company projected second-quarter revenue between $2.45 billion and $2.475 billion, which would represent a year-over-year decline of 3% to 2%.
Lululemon may have settled its proxy contest and hired a new CEO, but its challenges are far from over. The athletic apparel retailer cut its full-year guidance and issued a weak outlook for the current quarter, citing undisclosed headwinds.
Lululemon Athletica Inc (NASDAQ:LULU)'s first quarter results are unlikely to mark a turning point for the athletic apparel retailer, with Jefferies analysts warning that continued weakness in traffic, conversion and brand engagement is expected to weigh on performance, while a meaningful turnaround may not materialize until 2027. The brokerage expects Q1 revenue to rise 0.8% year over year to approximately $2.3 billion, with comparable sales declining 1% as softer demand in North America offsets continued international growth.
Retail favorite Lululemon Athletica Inc (NASDAQ:LULU) is set to report after Thursday's close, June 4.
Beyond analysts' top-and-bottom-line estimates for Lululemon (LULU), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended April 2026.