Lululemon Stock Falls After Weak 2026 Outlook Overshadows Q4 Earnings Beat, Chip Bergh Joins Board

VANCOUVER, British Columbia, March 17, 2026, 15:31 PDT Lululemon

Lululemon’s outlook for 2026 landed short of Wall Street hopes, knocking the stock down after hours—even after a strong holiday quarter that topped estimates. The company also added Chip Bergh, the former Levi Strauss CEO, to its board.

The warning comes as Lululemon juggles a CEO search—Calvin McDonald announced in December he’ll exit Jan. 31—and founder Chip Wilson pushes a proxy fight by nominating three directors. With Nike, Alo Yoga and Vuori all stepping up competition, the company is also working to turn around its North America business.

Lululemon is projecting fiscal 2026 revenue between $11.35 billion and $11.50 billion, with diluted earnings per share in the $12.10 to $12.30 range—both figures landing short of analyst expectations for $11.51 billion in revenue and $12.58 EPS, Reuters said, citing LSEG data. For Q1, the company is guiding for revenue of $2.40 billion to $2.43 billion and EPS of $1.63 to $1.68.

Lululemon posted a 1% gain in fourth-quarter revenue, reaching $3.64 billion, and reported diluted EPS of $5.01—both beating what analysts had penciled in. Comparable sales ticked up 3%. Still, revenue in the Americas slipped 4%, even as international revenue jumped 17%.

Profitability slipped. Gross margin dropped 550 basis points to 54.9%, with Reuters pointing to U.S. import tariffs as a factor. Inventory finished the year up 18% at $1.7 billion. Interim co-CEO Meghan Frank called better “full-price sales” a top goal, especially for North America. Lululemon

The board appears to be signaling stability with Bergh’s appointment. Marti Morfitt, the chair, labeled him an “industry leader.” Bergh, for his part, called the moment a “pivotal time” to come aboard. He’s slated to stand for election at the 2026 annual meeting, taking over the slot from David Mussafer, who isn’t running again. Lululemon

Tough stretch for the stock. Reuters noted shares have slipped roughly 23% so far this year, and MarketWatch reports they’re sitting close to a six-year low—down almost 52% from a year ago. Investors have raised doubts about style staying power, quality issues, and a heavier reliance on markdowns.

Lululemon isn’t out of the woods yet. The company’s international sales are holding up, and executives are betting that product launches alongside improved guest experiences might get growth back on track. Still, lingering weakness in U.S. demand, ongoing tariff pressure, and an unresolved board dispute during the CEO search all threaten to prolong the company’s rough patch.

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