Lululemon Athletica's stock experienced a sharp pre-market plunge of 11.52% on Friday, following the company's release of its first-quarter fiscal 2026 earnings and a significant downward revision to its full-year guidance.

The athletic apparel maker cut its annual profit forecast and projected second-quarter earnings well below Wall Street estimates. Management cited multiple headwinds including a spike in negative commentary around the brand in media and social channels, which weighed on retail traffic and sales. Additionally, some new product launches, including a recent line of yoga apparel, failed to generate the anticipated customer response or provide the expected "halo effect" on other product categories.

Persistent weakness in Lululemon's key North American market further pressured results, with the company expecting low double-digit declines in the region for the second quarter. Higher tariff costs are also pressuring profit margins. These challenges come amid increased competition and have led the company to forecast additional seasonal clearance activity to address slower-than-expected revenue trends.