Shares of the athletic apparel maker tumbled 17% in after-hours trading on Thursday, following another quarter of lackluster results and a reduced annual forecast. The company posted a 4% decline in second-quarter revenue, alongside a 9% drop in comparable sales, marking a tough period that follows a previously lowered guidance.

During the analyst call, interim CEO Meghan Frank attributed the weaker performance in the quarter to an uptick in "negative commentary" on social media platforms. Additionally, deceleration in some core categories, including its signature leggings line, came in "stronger than anticipated."

"While we are seeing encouraging responses to our marketing campaigns and certain new styles, the overall reception to our new product launches remains inconsistent, and we continue to witness brand pressures in our two largest markets," Frank noted during the call.

For the current quarter, Lululemon forecasts revenue in the range of $2.29 billion to $2.32 billion, signaling a roughly 10% to 11% contraction year-over-year. The company also projects earnings per share between $0.93 and $0.98 for the period.

On a full-year basis, Lululemon now expects net revenue to land between $10.35 billion and $10.5 billion, representing a 5% to 7% drop from the prior year and falling short of its earlier guidance of $11 billion to $11.15 billion. The company has also revised its earnings per share outlook to $9.48 to $9.73, down from the previously projected $10.95 to $11.15. Lululemon noted that its updated guidance incorporates the positive impact of tariff rebates.

In the latest quarter, the company's net income reached $329.2 million, or $2.92 per share, compared with $370.9 million, or $3.10 per share, in the same period last year. While gross profit slipped 1% to $1.5 billion, the gross margin improved by 5.6%, supported by $134.5 million in tariff refunds.

Frank stated during Thursday's call that management is concentrating on introducing fresh designs and tightening inventory levels to drive a sales resurgence. "We recognize there is considerable work ahead," she said. "Our management team and employees are dedicated to serving our customers and implementing strategies to achieve a pivotal shift in the business."

Lululemon continues to navigate efforts to rebuild its brand relevance and connection with consumers, all while facing scrutiny from its founder, Chip Wilson. The incoming CEO, Heidi O'Neill, is scheduled to take the reins of the retailer next week.