NEW YORK, Jan 12, 2026, 15:12 EST — Regular session
- Lululemon shares climbed in afternoon trading following the retailer’s update that its holiday-quarter results are expected to come in near the high end of its previous forecast
- The company held steady on its margin and expense forecasts
- Focus shifts to ICR conference meetings amid ongoing CEO search
Shares of lululemon athletica inc climbed roughly 3.2% to $210.43 Monday afternoon. The boost came after the company forecasted its fourth-quarter revenue and profit to hit the upper end of its previous guidance, driven by strong holiday demand. (Reuters)
This update is crucial since the stock has acted as a barometer for confidence. Investors have been on edge, looking for clear evidence that demand isn’t weakening further while the company works on revamping its U.S. operations.
This comes as management faces intense scrutiny from analysts and major shareholders, with the company’s strategy and leadership transition still unresolved.
Lululemon now projects fourth-quarter fiscal 2025 net revenue and diluted earnings per share to land near the top of its prior guidance. The company expects revenue between $3.500 billion and $3.585 billion, with EPS ranging from $4.66 to $4.76. CFO Meghan Frank pointed to the holiday season as the reason they’re targeting the “higher end” of those estimates. (Lululemon)
That figure aligns closely with Wall Street expectations. Analysts surveyed by RTTNews and featured on Nasdaq’s site project roughly $3.57 billion in revenue and $4.78 in EPS for the quarter. (Nasdaq)
William Blair’s Sharon Zackfia and team labeled Lululemon a “show-me story,” arguing the spring product cycle will likely drive the stock more than wrapping up the holiday quarter near the top of guidance. (Barron’s)
Lululemon’s action coincided with declines across other sportswear stocks. Nike dipped roughly 0.9%, Under Armour slid 0.7%, and Deckers Outdoor dropped close to 1.9% in afternoon trading.
The retailer is currently undergoing a CEO transition. Calvin McDonald plans to step down as CEO and board member on Jan. 31. Frank and chief commercial officer André Maestrini will act as interim co-CEOs during the board’s ongoing search, the company announced in December. (Lululemon)
Adding fuel to the fire, founder Chip Wilson has kicked off a proxy fight—a shareholder vote to reshuffle board seats. At the same time, activist investor Elliott Management has scooped up about a $1 billion stake, Reuters reported last month. (Reuters)
Monday’s update remains a “within-the-range” note rather than a fresh outlook. The company stuck to its previous guidance on gross margin and operating expenses. Still, heavier promotions to move inventory might squeeze profits, even if sales remain steady. (Business Wire)
Management will hold a series of meetings at the ICR Conference in Orlando through Jan. 14. Investors are keen to hear updates on U.S. demand, discounting strategies, and progress in the CEO search. (ICR)
