Lululemon forecasts lower revenue and profit amid board turmoil and competition

Tuesday 17 March 2026 - 22:00

Lululemon Athletica on Tuesday projected annual revenue and profit slightly below Wall Street expectations, reflecting ongoing challenges in a competitive market and internal governance issues. The announcement comes amid a period of leadership change and strategic uncertainty for the company.

Lululemon expects 2026 revenue to range between $11.35 billion and $11.50 billion, slightly below analysts’ average estimate of $11.51 billion. Forecasted profit per share stands between $12.10 and $12.30, compared with the anticipated $12.58. Following the update, shares fell about 2.4% in extended trading.

The company has faced multiple pressures in recent months. Leadership changes, including the departure of CEO Calvin McDonald in December, coupled with a proxy fight led by founder Chip Wilson to reshape the board, have contributed to investor caution. Additionally, Lululemon faces intensifying competition from established sportswear giants such as Nike Inc and emerging athleisure brands like Alo Yoga and Vuori.

Once a pioneer in the athleisure sector, Lululemon has struggled to maintain design innovation and market share amid rapidly evolving consumer preferences. Analysts say the company must balance brand identity, product creativity, and operational efficiency to regain momentum and reassure investors.