By Kelly Cloonan
Lululemon Athletica is scheduled to report its fiscal fourth-quarter results on Tuesday after market close. Here is what you need to know.
NET INCOME: The athleticwear retailer is expected to post a profit of $562.1 million, according to FactSet, compared with $748.4 million in the prior-year quarter.
REVENUE: The yoga pants maker is expected to report $3.57 billion in sales, according to FactSet, compared with $3.61 billion last year.
COMPARABLE SALES: Same-store sales, which adjust for store openings and closings, are expected to tick up 0.3%, compared with a 3% increase a year ago.
The stock has slid 22% during the past three months and recently traded around $161.10.
WHAT TO WATCH:
--Given the company updated its fourth-quarter outlook ahead of the ICR Conference in January, analysts expect relatively in-line results. The bigger question will be the company's guidance, according to UBS analysts. "We expect lackluster FY26 guidance, but believe the market has a similar view," the analysts said, citing lackluster U.S. trends so far this quarter despite more newness in the company's product assortment.
--Lululemon's leadership struggles remain a key focus. Calvin McDonald stepped down as chief executive earlier this year amid criticism from founder Chip Wilson, and the company's finance chief and chief commercial officer are now co-CEOs on an interim basis. Some analysts hope the company will look for a permanent successor with product experience, pointing to issues with quality and too much focus on lifestyle clothing rather than its core athletic wear. "Calvin ruined the brand as product decisions diluted brand equity, and that's not easy to fix," Jefferies analysts said in a note. "We want a CEO who is passionate, can engage with employees, and preferably one with product experience."
--Wilson has also launched a proxy fight at Lululemon, nominating three director candidates to its board. Wilson has argued that the company will have to remake its board to ensure a new CEO can succeed. "After three CEO departures without a successor ready to take the helm, one must consider if the Company's Board is simply not equipped to support visionary leadership, no matter how qualified an individual may be," Wilson said in a statement last week.
Write to Kelly Cloonan at kelly.cloonan@wsj.com
(END) Dow Jones Newswires
March 16, 2026 14:55 ET (18:55 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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