Lululemon Athletica Inc.‘s shares sank more than 15 per cent in early trading, a day after the retailer revealed a slump in its financial performance and slashed its guidance for the year.
The Vancouver-based company’s shares were down US$19.58 at US$102.19 shortly after the start of trading on the Nasdaq market today.
Lululemon announced Thursday, after markets closed, that its second-quarter profit, revenue and comparable sales were down from a year ago, prompting it to downgrade its expectations for the remainder of the year.
The company also said customers were “inconsistent” in how they are responding to Lululemon merchandise, with its star product, leggings, experiencing a greater-than-expected slowdown.
Lululemon also admitted it had taken a hit from months of bad publicity. It had a feud with its estranged founder Chip Wilson, had to temporarily remove a leggings line that was too see-through and faced criticism in China, where it used a Japanese drum at a yoga festival.
The troubles preceded Lululemon naming a new chief executive. Former Nike executive Heidi O’Neill will assume the top job next week.
This report by The Canadian Press was first published Sept. 4, 2026.
