On June 5, Lululemon Athletica declined 10.77% overnight, trading at $111.34/share, with trading volume of $15,000. The sharp drop was triggered by the company's significant downward revision of full-year financial guidance following its fiscal Q1 earnings release.

Lululemon reported Q1 EPS of $1.69, roughly in line with estimates, on revenue of $2.472 billion. However, Q1 net income fell 38% year-over-year to $195 million. The company slashed its full-year revenue outlook to $11.0-$11.15 billion, well below the prior range of $11.35-$11.5 billion and the consensus estimate of $11.47 billion. Full-year EPS guidance was cut from $12.10-$12.30 to $10.95-$11.15. Management cited headwinds impacting performance and noted Q2 revenue growth is trending below expectations, prompting increased seasonal clearance activity. The core Americas market has seen flat comparable-store sales for eight consecutive quarters, underscoring persistent growth challenges in the brand's home region.

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