Lululemon reports weak guidance as proxy battle, tariffs weigh on bottom line

Lululemon topped Wall Street expectations for fiscal Q4 but issued weaker-than-expected sales and earnings guidance for fiscal 2026. The quarter beat provides some operational momentum, but the cautious FY26 outlook creates near-term downside risk to the stock and could weigh on revenue/earnings trajectory until guidance is clarified.

Analysis

Lululemon topped Wall Street expectations for fiscal Q4 but issued weaker-than-expected sales and earnings guidance for fiscal 2026. The quarter beat provides some operational momentum, but the cautious FY26 outlook creates near-term downside risk to the stock and could weigh on revenue/earnings trajectory until guidance is clarified.