Lululemon Athletica shares closed at $100.61 on Friday, marking a 17.38% decline in one session. The stock has fallen approximately 80% from its December 2023 peak of $511.29. The company has reduced its sales forecast three times this year, with the 2026 outlook lowered from $11.35 billion to $10.35 billion.
Second-quarter revenue for the retailer dropped 4% to $2.4 billion, while comparable sales decreased by 9%. Earnings per share were reported at $2.92, bolstered by a one-time $134.5 million tariff refund. The company anticipates a further 10% to 11% decline in sales for the third quarter.
Founder Chip Wilson and his wife, Shannon Wilson, are currently involved in divorce proceedings in the Supreme Court of British Columbia. The couple lacks a prenuptial agreement, which may lead to an even split of assets acquired during their marriage. Wilson and his associated entities hold 9.9 million shares, representing 8.7% of the company.
The 9.9 million shares held by the founder were valued at slightly under $1 billion at the market close on Friday. Approximately 1.1 million of these shares are already attributed to Shannon Wilson. In May, Chip Wilson reached an 18-month truce with the board, securing two board seats, while new CEO Heidi O’Neill is set to begin her tenure this week.
