Shares in the Canadian athleisure brand slipped in after-hours trading on March 17 as investors looked past a Q4 beat to focus on below-consensus 2026 guidance and mounting governance complexity.
Shares in Lululemon Athletica slipped about 1 percent in after-hours trading on March 17 after the athletic apparel maker forecast 2026 results below market expectations, overshadowing a better-than-expected fourth quarter.
The muted move came against a steeper year-to-date drop of about 23 percent, as investors weigh softer demand in North America, margin pressure from U.S. import tariffs and the lack of a permanent chief executive.
For fiscal 2026, Lululemon forecast revenue of $11.35 billion to $11.50 billion (€10.44 billion–€10.58 billion), slightly below the analyst consensus of $11.51 billion (€10.59 billion). Gross margin fell 550 basis points to 54.9 percent in Q4, with tariff-related costs driving most of the year-on-year decline.
Governance uncertainty adds to the overhang
The results mark the first full earnings cycle under interim co-CEOs Meghan Frank and André Maestrini, after longtime chief Calvin McDonald departed in December. The company has yet to name a successor.
Founder Chip Wilson has stepped up calls for board changes, nominating three independent directors and pushing for annual elections, while also warning that promotional activity could erode brand equity. Analysts at BTIG and Needham have pointed to the mix of North American softness, competitive pressures and governance uncertainty as key drags on the stock.
