Lululemon Athletica Inc.LULU
▼ NegativeCapitalrelevance
Earnings miss and second full-year outlook cut drive shares down 18%.
Impact on stocks 2
Consumer Discretionary
Lululemon Athletica Inc.
Nike IncNKE
Mentioned
Shares of Lululemon dropped 15% on Thursday, Sept. 3, following its earnings release, before the sell-off accelerated to 18% overnight as investors digested a 9% comparable sales decline and a second full-year outlook cut. The stock had already languished roughly 42% lower for the year heading into the print, and the slide added billions in lost market value. The drop was the third double-digit sell-off in 2026, following a 12% fall in April after naming former Nike executive Heidi O'Neill as CEO and an 8.6% decline in June after cutting its annual profit forecast. Lululemon technically beat earnings estimates with $2.92 per share against a forecast of $1.80, but only because a $134.5 million tariff refund inflated gross margin. Interim co-CEO Meghan Frank cited negative social media commentary and slowing core categories, while incoming CEO O'Neill faces an active proxy fight with founder Chip Wilson. Investor Michael Burry, holding Lululemon as his largest position at 17.4%, plans to buy more shares if the stock trades under $100.
Lululemon Athletica Inc.Earnings miss and second full-year outlook cut drive shares down 18%.
Nike Inc