The Financial Post reports in its Thursday, March 19, edition that Lululemon athletica is forecasting a soft outlook for 2026 as it navigates U.S. tariffs, lagging North American sales and a proxy battle with its founder.
The Post's Jane Switzer writes that Lululemon expects full-year 2026 revenue to grow between 2 per cent to 4 per cent (in the range of $11.35-billion to $11.5-billion), just shy of analysts' average estimate of $11.52-billion.
Chief financial officer Meghan Frank said Tuesday: "We recognize there is more work to be done, and we have been course-correcting on a number of fronts. But we are encouraged by the guests' response to our recent new product drops and activations."
In its latest earnings report, net revenue increased 1 per cent year over year to $3-billion in the fourth quarter of fiscal 2025, which ended Feb. 1. For the full year, net revenue increased 5 per cent to $11.1-billion.
Net income for the quarter was nearly $587-million, down from $748-million a year ago. Diluted earnings per share were $5.01 -- above analysts' expectations of $4.78 per share but below the $6.14 per share reported a year earlier. Net revenue grew 3 per cent in Canada and fell 1 per cent in the United States.
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