Lululemon Athletica’s (LULU) stock experienced a significant decline in premarket trading after the company announced a reduced profit forecast for both the second quarter and the full fiscal year. Lululemon projected second-quarter revenue between $2.54 billion and $2.56 billion, with earnings per share ranging from $2.85 to $2.90—both figures falling short of analysts’ expectations. Additionally, the company revised its full-year earnings per share forecast downward to $14.58 to $14.78, compared to the prior estimate of $14.95 to $15.15. Analysts from JPMorgan and UBS subsequently lowered their price targets for Lululemon’s stock. CEO Calvin McDonald attributed the cautious consumer behavior to intentional buying decisions, while CFO Meghan Frank indicated that modest price increases would be implemented to address tariff impacts.
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