06:31 AM EDT, 06/05/2026 (MT Newswires) -- Lululemon Athletica ( LULU ) shares fell early Friday after the athletic apparel retailer lowered its full-year outlook amid weak sales trends, even though it recorded better-than-expected results in the fiscal first quarter.

The company now anticipates per-share earnings to be in a range of $10.95 to $11.15 for fiscal 2026, it said late Thursday, down from prior projections of $12.10 to $12.30. Revenue is pegged at $11 billion to $11.15 billion, compared with the previous guidance of $11.35 billion and $11.5 billion.

The current consensus on FactSet is for EPS of $11.69 and sales of $11.28 billion for the ongoing fiscal year. The stock dropped 12% in the most recent premarket activity.

Lululemon faced "a few headwinds and a moderating sales trend" as it closed the first quarter and entered the subsequent period, interim co-Chief Executive Meghan Frank said during an earnings call, according to a FactSet transcript.

The company experienced "spikes of negative commentary" in mainstream and social media regarding its brand, impacting traffic and overall topline performance, according to Frank. Additionally, not all of the retailer's product launches met its expectations, Frank said on the call.

"Taken together, these factors impacted performance and are reflected in our updated guidance," Frank added.

Last month, Lululemon said it reached a cooperation agreement with founder Chip Wilson, ending a proxy fight that had centered on the company's strategy and board composition.

For the ongoing quarter, Lululemon expects EPS to come in between $1.76 and $1.81. Revenue is set to be in a range of $2.45 billion to $2.48 billion, representing an annual decline of 2% to 3%. The Street is looking for EPS of $2.24 and sales of $2.53 billion.

"We recognize that we have more work to do, and our teams remain focused on our priorities as we continue our efforts to reignite growth and realize Lululemon's full potential," interim co-CEO Andre Maestrini said in the earnings release.

The company's net income slipped to $1.69 per share for the quarter ended May 3 from $2.60 the year before, but came in ahead of the average analyst estimate of $1.68. Revenue increased 4% to $2.47 billion, ahead of the Street's view for $2.43 billion. Sales in the Americas declined 3%, while international revenue advanced 22%.

Comparable sales ticked up 1% year over year, better than the market's forecast for a decrease of 0.2%. The metric moved down 5% in the Americas, but rose 13% internationally.