Finance
Lululemon Forecasts Annual Revenue, Profit Below Estimates
Published by Global Banking & Finance Review®
Posted on March 17, 2026
2 min readLast updated: March 17, 2026
Quick Summary
Lululemon's guidance for 2026 falls just short of expectations, signaling persistent headwinds in its core U.S. market amid leadership uncertainty.
Lululemon forecasts softer 2026 amid board, demand strains
Lululemon's 2026 Outlook and Company Challenges
Revenue and Profit Forecasts Miss Expectations
March 17 (Reuters) - Lululemon forecast 2026 revenue and profit below Wall Street expectations on Tuesday, underscoring its challenges as it faces rising competition and an attempt by founder Chip Wilson to overhaul the board.
Leadership and Boardroom Changes
CEO Departure and Proxy Fight
Upheaval at the athletic apparel maker follows months of share price weakness and shaky product execution, culminating in CEO Calvin McDonald's departure in December and a subsequent proxy fight by Wilson, who had nominated three independent directors to the company's board and called for annual board elections.
New Board Appointment
Lululemon said on Tuesday it has appointed former Levi Strauss CEO Chip Bergh to its board.
Business Performance and Market Reaction
Soft Start to 2026 and Share Price Impact
The outlook also signaled a soft start to the year, with slowing momentum in its North American business overshadowing a better-than-expected holiday quarter.
Shares of the company fell about 1% in extended trading. They have declined about 23% so far this year.
Financial Guidance for 2026
Revenue and Profit Projections
Lululemon expects annual revenue to be between $11.35 billion and $11.50 billion, compared with analysts' average estimate of $11.51 billion, according to data compiled by LSEG.
It forecast annual profit in the range of $12.10 to $12.30 per share, while analysts estimated $12.58.
Competitive Landscape and Recent Performance
Competition in the Athleisure Market
Once a pioneer of the athleisure category, Lululemon has also lost ground to big sportswear brands like Nike as well as upstarts such as Alo Yoga and Vuori.
Fourth Quarter Results
Revenue and Profit Beat Estimates
For the fourth quarter, the company reported revenue of $3.64 billion, beating the estimate of $3.58 billion. Its quarterly profit per share of $5.01 also topped analysts' expectations of $4.78.
International Sales Growth
The company exceeded its January preliminary update as well, supported by a 17% jump in international sales during the holiday quarter.
Gross Margin Decline
Gross margin, however, decreased 550 basis points to 54.9% during the quarter as it faces an impact from U.S. import tariffs.
(Reporting by Neil J Kanatt in Bengaluru; Editing by Shilpi Majumdar)
Key Takeaways
- •2026 revenue guidance of $11.35–11.50 billion slightly misses analysts’ average of $11.51 billion (corporate.lululemon.com)
- •Projected EPS of $12.10–12.30 undercuts estimates of $12.58, reflecting margin pressure (corporate.lululemon.com)
- •Founder Chip Wilson’s escalated board campaign and absence of a permanent CEO heighten governance and strategic uncertainties (sgieurope.com)
References
Frequently Asked Questions about Lululemon forecasts annual revenue, profit below estimates
1What is Lululemon's projected 2026 annual revenue?
Lululemon forecasts its 2026 annual revenue to be between $11.35 billion and $11.50 billion.
2Who is currently leading Lululemon after Calvin McDonald's departure?
Lululemon is currently searching for a permanent CEO following the departure of Calvin McDonald in December.
3How do Lululemon's revenue projections compare to analyst expectations?
Lululemon's projected revenue range is slightly below the analyst average estimate of $11.51 billion.