lululemon athletica inc. is refocusing its growth strategy around product creation, product activation and enterprise enablement, aiming to restore full-price sales growth and strengthen long-term brand health. Management said it is updating core franchises, reducing SKUs and improving inventory discipline while increasing chase capabilities, and the company is chasing about 20% more volume this year compared with last year. The strategy follows uneven product performance, with sales in traditional leggings declining approximately 20% in second-quarter fiscal 2026 as consumer preferences shifted toward looser silhouettes, though newer away-from-body women's bottoms such as the Groove Wide-Leg, Align Foldover Jogger, Breezily and updated Dance Studio Pant showed positive momentum, along with favorable response to Scuba, Steady State and Define franchises and continued strength in men's Metal Vent Tech tees and golf tops. Second-quarter fiscal 2026 results showed overall product launches remained uneven, contributing to weaker traffic and conversion trends in key markets. Shares of lululemon have lost 39.9% in the past six months, and the Zacks Consensus Estimate for fiscal 2026 and 2027 earnings suggests a year-over-year decline of 28.1% and 5.5%, respectively.
Lululemon Athletica Inc.Leggings sales fell ~20% in Q2 FY2026 as consumer preferences shifted, with uneven product launches weakening traffic and conversion.
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