0938 ET - Lululemon's earnings power remains in question following a sharp cut to its full-year outlook, Stifel analysts say in a research note. "The domestic core worsened in April and May and the 2Q26 guidance for -LDD% North America declines is a meaningful shortfall to our expectations," they say. The company's domestic challenges have no obvious near-term fix, with larger structural competitive dynamics and brand perception potentially taking quarters-to-years to fix, the analysts say. The company's international growth engine remains intact but isn't powerful enough to offset the domestic headwinds, they say. As a result, comps are likely to remain negative through at least the first half of 2027, rather than inflecting later this year, the analysts say. Lululemon tumbles 9% in early trading. (connor.hart@wsj.com)

(END) Dow Jones Newswires

June 05, 2026 09:38 ET (13:38 GMT)

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