Lululemon Reports Weak Guidance Amid Proxy Battle and Tariffs

Lululemon Athletica Inc. (LULU) topped fourth-quarter estimates but gave weaker-than-expected sales and earnings forecasts for 2026. The company's stock price fell 4.5% in after-hours trading on Wednesday, March 17, 2026.

Lululemon's Q4 Earnings

Lululemon reported fourth-quarter earnings of $1.83 per share, beating analysts' expectations of $1.72 per share. Revenue for the quarter came in at $2.36 billion, exceeding estimates of $2.33 billion.

Weak Guidance

However, the company's guidance for 2026 fell short of expectations. Lululemon forecast earnings per share of $7.15 to $7.45, below analysts' estimates of $7.60. The company also predicted revenue of $9.45 billion to $9.65 billion, short of estimates of $9.75 billion.

Proxy Battle and Tariffs

Lululemon's weak guidance comes as the company faces a proxy battle with a group of investors who are pushing for changes to the company's board of directors. The company is also facing tariffs on its products, which could further impact its revenue.

Impact on Stock Price

Lululemon's stock price fell 4.5% in after-hours trading on Wednesday, March 17, 2026. The company's stock has been under pressure in recent months due to concerns about the impact of tariffs and the proxy battle.

Conclusion

Lululemon's weak guidance and falling stock price are a concern for investors. The company faces significant challenges in the coming year, including the proxy battle and tariffs. However, the company's strong brand and loyal customer base could help it navigate these challenges.

Sources

[4] Lululemon reports weak guidance as proxy battle, tariffs weigh on bottom line