Lululemon Stock Drops 18% to 8-Year Low After Third Guidance Cut
Nasdaq-listed Lululemon Athletica (LULU) stock dropped 18% in after-hours trading on September 3. Shares fell to under $100 after the company's third guidance cut of 2026 overshadowed a profit beat.
The decline pushed shares to their lowest level in roughly eight years, below the 52-week low. LULU now trades about 80% under its all-time high of $511.29, set in December 2023.
Lululemon's Third Guidance Cut of the Year
Lululemon has trimmed its full-year outlook three times since March. Each cut followed a quarter that beat earnings estimates but missed on sales.
March guidance called for $11.35 billion to $11.50 billion in revenue. June guidance was cut to $11.00 billion to $11.15 billion. September guidance now stands at $10.35 billion to $10.50 billion.
Second-quarter revenue fell 4% year over year to $2.42 billion, missing forecasts. Comparable sales dropped 10% globally and 12% in North America.
Lululemon Under Pressure
The repeated cuts have coincided with a turbulent year for the brand. Founder Chip Wilson waged a proxy fight against the board, and former chief executive Calvin McDonald departed in January.
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