June 4 (Reuters) - Lululemon Athletica ( LULU ) cut its annual revenue and profit forecast on Thursday, as the athletic apparel maker grapples with waning brand appeal in the U.S. amid tough competition, sending its shares down about 7% in extended trading.

The Vancouver-based apparel brand, known for its high-priced leggings and athleisure wear, is struggling to win back loyal North American shoppers and revive the brand's appeal. Investors are focused on whether incoming CEO Heidi O'Neill can reignite sales after assuming the role in September.

The company, which ended a months-long proxy fight with founder Chip Wilson in May, expects its fiscal 2026 revenue to be flat to decline 1%, compared with its prior forecast of a 2% to 4% increase.

It also expects full-year earnings per share to be between $10.95 and $11.15, compared with its prior forecast of $12.10 to $12.30.