On June 4, 2026, Lululemon announced its financial results the first quarter of 2026. The Company disclosed it was “now expecting net revenue to be in the range of $11 billion to $11.150 billion, representing a decline of 1% to 0%,” significantly below their prior guidance representing growth of 2% to 4%. Further, the Company disclosed it new expected “diluted [EPS] . . . in the range of $10.95 to $11.15 for the year,” significantly below their prior guidance of $12.10 to $12.30.

On an accompanying earnings call held the same day, Lululemon disclosed that it had experienced a significant reduction in store traffic across “all demographics” and regions, particularly in China and the United States, which they primarily blamed on softer-than-planned new product launches and negative media and social-media commentary, the latter of which they asserted had “died down” and “subsided” in the quarter.

On this news, Lululemon shares fell $10.69 or 8.56%, to close at $114.23 per share on June 5, 2026, thereby injuring investors.

Then, on September 3, 2026, Lululemon announced financial results second quarter of 2026. Therein, Lululemon reported, inter alia, lower-than-expected net revenue of approximately $2.42 billion. The Company also sharply reduced Lululemon’s full year 2026 financial guidance again, “now expecting net revenue to be in the range of $10.350 billion to $10.500 billion, representing a decline of 5% to 7%,” significantly below their previously revised guidance.

On an accompanying earnings call held the same day, the Company disclosed that it had continued to face negative media and social-media commentary, negatively impacting customer traffic, and softer-than-planned responses to certain new product launches, contributing to a moderating sales trend. The Company further disclosed that these conditions were primarily attributable to the Company’s Mainland China segment and “compounded by” additional commentary following an event that Lululemon held on the Great Wall of China.

On this news, Lululemon shares fell $21.16 or 17.38%, to close at $100.61 per share on September 4, 2026, thereby further injuring investors.