12:33 ET -- Of the key sources lululemon cited to explain why trends have worsened lately, the company's disclosure that some of its new product launches have underperformed expectations is the more worrying factor, Deutsche Bank analysts say in a note. The new product headwinds are expected to hurt Lululemon's gross margin by 50 basis points from markdowns in the current quarter, despite already lapping a 60-basis-point hit from the same quarter a year ago, the analysts say. The company also pointed to spikes in negative commentary as a key drag on sales. The analysts say the magnitude of the company's full-year guidance cut, and those underlying reasons, came as a surprise. (kelly.cloonan@wsj.com)

(END) Dow Jones Newswires

June 05, 2026 12:33 ET (16:33 GMT)

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