Lululemon Athletica lowered its full-year sales outlook for the second consecutive quarter to a range of US$10.35 billion to US$10.5 billion for the fiscal year ending in early 2027. ^[1] Lululemon Athletica (LULU) shares dropped 18% in after-hours trading on September 3 to trade below $100, reaching their lowest level in roughly eight years. ^[2] Lululemon issued its third guidance cut for the full year 2026, lowering the revenue outlook from a March forecast of $11.35 billion to $11.50 billion down to September guidance of $10.35 billion to $10.50 billion. ^[3] Comparable sales for Lululemon fell 9% year over year in the second quarter, with a 12% decline in the Americas region. ^[4] Lululemon reported second-quarter net revenue of $2.47 billion, representing a 4% year-over-year decline. ^[5] Incoming CEO Heidi O'Neill must win back market share from competitors like Alo and Vuori and rebound from product mishaps and an overreliance on discounts. ^[6] Lululemon shares declined more than 40 per cent in 2026, with the stock value falling to less than a quarter of its peak in late 2023 as of Sept 3's close. ^[7] Interim co-CEO and CFO Meghan Frank stated that negative commentary in media and social channels impacted traffic and resulted in a softer than planned response to new product launches. ^[8] Second-quarter revenue fell 4% year over year to $2.42 billion, missing forecasts, while comparable sales dropped 10% globally and 12% in North America. ^[9] Lululemon plans to increase marketing investments in the second half of the year to return to sales growth. ^[10]