Lululemon shares have taken a hit after a difficult quarter.
The activewear giant released its latest earnings report at the end of last week, with revenue up but income down.
While revenue was posted at US$2.47 billion, compared to $2.37 billion a year ago, the cost of goods sold had spiked up 14%, alongside a 12.4% increase in selling and general expenses for the company.
The overall result was a profit down by 4% and net income down by 38% for the quarter, as well as a drop in earnings per share to $1.69, from $2.60 the same time last year.
Now, this week, Lululemon found itself trading at an eight year low.
“We experienced a solid start to 2026…more recently, we have been navigating headwinds that have led us to adjust our outlook for the full year,” said Meghan Frank, Interim Co-CEO and Chief Financial Officer.
“We have assessed the business and are taking additional actions to reposition where needed and further strengthen our product engine. We remain confident in our path forward.”
The company maintains a market capitalisation of $14.4 billion.
