The company now expects full-year net revenue between $11.0bn and $11.15bn, which would represent a decline of up to 1% compared with earlier expectations.
It expects diluted earnings per share in the range of $10.95 to $11.15.
For the quarter ending 3 May 2026, lululemon recorded net revenue of $2.5bn, up 4% from the same period last year.
The company’s international business delivered strong growth, with net revenue increasing 22% year-on-year, or 16% on a constant dollar basis.
However, the Americas market faced challenges, with net revenue dropping 3%, or 4% on a constant dollar basis.
Overall comparable sales increased 1%, reflecting a 5% decrease in the Americas and a 13% increase internationally.
Gross profit fell by 3% to $1.3bn as gross margin decreased 410 basis points to 54.2%. Operating income dropped sharply by 37% to $276.9m, and operating margin was down by 730 basis points to 11.2%.
Diluted earnings per share for the quarter stood at $1.69, down from $2.60 in the same period last year. The effective income tax rate rose to 31.8% from 30.2%.
The retailer repurchased 2.2m shares for $358.3m during the quarter and opened five net new company-operated stores, bringing its total to 816.
Inventories at the end of the quarter were $1.7bn, a 2% increase over the same quarter of 2025, though inventories declined 4% on a unit basis.
Lululemon athletica interim Co-CEO and chief financial officer Meghan Frank said: “We experienced a solid start to 2026 as our teams executed with speed, agility, and discipline. Our work to drive improvements in North America resulted in some positive signals in the quarter, including a sequential improvement in full-price sales.
“More recently, we have been navigating headwinds that have led us to adjust our outlook for the full year. We have assessed the business and are taking additional actions to reposition where needed and further strengthen our product engine. We remain confident in our path forward,” Frank said.
Outlook for second quarter
For the second quarter, lululemon athletica forecasts net revenue in the range of $2.45bn to $2.475bn, representing an anticipated decline of between 3% and 2%.
Diluted earnings per share for the quarter are expected to be between $1.76 and $1.81, based on a projected tax rate of about 30%.
Recently, lululemon reached a cooperation agreement with founder and major shareholder Chip Wilson, ending a prolonged governance dispute and paving the way for two new directors to join its board in 2026.
