0919 ET - Lululemon's 1Q profit met expectations, but the company lowered its full-year EPS outlook by roughly 10% as weakening trends entering 2Q are now expected to yield full-year sales of flattish to down 1%, compared with prior guidance of up 2% to 4%, according to William Blair in a note. "Negative social media commentary and a lackluster response to some new product launches were cited as culprits, positioning the brand for an expected worsening in comp trends and markdowns in the second quarter and roughly 900 basis points of operating margin contraction," the analysts say in a research note. The outlook for next year isn't much better, they add. Given the new CEO's start date isn't until September, 2027 may very well be another transition year, they say. Lululemon drops 12% premarket. (connor.hart@wsj.com)

(END) Dow Jones Newswires

June 05, 2026 09:19 ET (13:19 GMT)

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