By Kelly Cloonan
Lululemon Athletica is scheduled to report its fiscal first-quarter results on Thursday after the market closes. Here is what you need to know.
NET INCOME: The yoga pants maker is expected to post a profit of $195.9 million, according to FactSet, compared with $314.6 million the year before.
REVENUE: The company is expected to report $2.43 billion in sales, according to FactSet, compared with $2.37 billion in the year-ago quarter.
SAME-STORE SALES: Analysts expect same-store sales to be down 0.2%.
The stock has fallen 28% during the past three months and recently traded around $125.93.
WHAT TO WATCH:
--Lululemon settled a dispute with founder Chip Wilson last week, reaching a deal that will allow Wilson to name two new directors to the company's board. Lululemon also agreed to add a third director with apparel product and brand expertise, subject to Wilson's approval. In exchange, Wilson agreed to an 18-month standstill and nondisparagement agreement. Wilson publicly criticized the company for years, and launched a proxy fight in December seeking to overhaul its board.
--While the cooperation agreement is a positive for Lululemon, the new board members won't join until after its annual meeting in June, and former Nike executive Heidi O'Neill doesn't start as chief executive until September, meaning a rebound is likely still a ways off, Jefferies analysts said in a note. "Any meaningful reset in product, merchandising, or brand is unlikely until at least Spring 2027, with additional time required to decide whether it was the right strategy," the analysts said, noting they don't expect first-quarter results to show any material improvement.
--UBS analysts said they expect soft recent trends for Lululemon, with industry data showing first-quarter U.S. sales down low double digits and decelerating sequentially through the quarter, while quarter-to-date data for the current period indicates further deceleration, they say. As a result, the analysts say they expect a weak sales outlook for the current quarter.
Write to Kelly Cloonan at kelly.cloonan@wsj.com
(END) Dow Jones Newswires
June 03, 2026 14:15 ET (18:15 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.