Lululemon's 2026 Revenue Forecast Falls Short as Proxy Battle and Leadership Void Weigh on Brand

Lululemon kicked off 2026 under pressure after issuing revenue and profit guidance that disappointed Wall Street analysts and announcing a high-profile board shakeup amid an ongoing proxy fight from company founder Chip Wilson.

The athletic apparel giant projected full-year revenue between $11.35 billion and $11.50 billion, coming in below the analyst consensus of $11.52 billion. Earnings per share guidance of $12.10 to $12.30 also trailed expectations of $12.58. Despite the cautious outlook, analysts noted the conservative guidance may reflect the absence of a permanent CEO following Calvin McDonald's exit in January, with the company currently being led by interim co-CEO and CFO Meghan Frank.

Frank emphasized that restoring full-price sales growth in North America is a top priority, pointing to plans around refreshing product designs, trimming excess inventory, and reducing markdowns. Lululemon also stated it expects to offset nearly all of the estimated $380 million gross impact from U.S. import tariffs — a notable increase from $275 million in 2025 — as it diversifies its sourcing strategy away from heavy reliance on China.

On the governance front, Lululemon named former Levi Strauss CEO Chip Bergh to its board of directors, a move that drew praise from industry analysts who cited his turnaround experience in apparel. Meanwhile, longtime board member David Mussafer announced he would not seek re-election, a development seen as a partial concession amid Wilson's ongoing push for structural board changes.

Wilson, who controls roughly 4.27% of company shares, has nominated three independent directors and called for annual board elections, citing concerns over conflicts of interest in the CEO search process.

Lululemon's stock slipped around 1.5% in after-hours trading and has declined approximately 23% year-to-date, reflecting broader headwinds from intensifying competition, shifting consumer sentiment, and uncertainty surrounding long-term brand leadership.