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Lululemon shares fall after profit drop, guidance downgrade

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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.

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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.

People line up outside a Lululemon Athletica store in Ottawa, as non-essential retail stores reopen with limited in-store capacity, on the first day of Ontario's first phase of reopening amid the third wave of the COVID-19 pandemic, on Friday, June 11, 2021. THE CANADIAN PRESS/Justin Tang
People line up outside a Lululemon Athletica store in Ottawa, as non-essential retail stores reopen with limited in-store capacity, on the first day of Ontario's first phase of reopening amid the third wave of the COVID-19 pandemic, on Friday, June 11, 2021. THE CANADIAN PRESS/Justin Tang

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.

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