Pomerantz Law Firm Announces The Filing of a Class Action Against lululemon athletica inc. and Certain Officers - LULU
NEW YORK CITY, NY / ACCESS Newswire / November 2, 2026 / Pomerantz LLP announces that a class action lawsuit has been filed against lululemon athletica inc. ("Lululemon" or the "Company") (NASDAQ:LULU) and certain officers. The class action, filed in the United States District Court for the District of New Jersey, and docketed under 26-cv-14271, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Lululemon securities between March 18, 2026 and September 3, 2026, both dates inclusive (the "Class Period"), seeking to recover damages caused by Defendants' violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are an investor who purchased or otherwise acquired Lululemon securities during the Class Period, you have until January 4, 2027, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Danielle Peyton at [email protected] or 646-581-9980 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
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Lululemon, together with its subsidiaries, designs, distributes, and retails technical athletic apparel, footwear, and accessories for women and men. The Company organizes its operations into four regional markets: Americas, China Mainland, Asia Pacific ("APAC"), and Europe and the Middle East ("EMEA"). The Company has three reportable segments: Americas, China Mainland, and Rest of World, the latter of which is comprised of the APAC and EMEA regions on a combined basis.
Lululemon previously served as a dominant force and innovator in the premium activewear market, built on its reputation for providing trendy, high-quality products. In recent years, however, the Company's business has lost momentum as its products have become increasingly viewed as uninspired and out of touch with recent trends. Investors and analysts have also grown increasingly concerned with rising competition from new market entrants and issues with Lululemon's brand image, with the Company missing trends, facing backlash related to quality and design issues, and engaging in highly publicized proxy and other disputes with its founder, former Board of Directors member, and largest individual shareholder, Chip Wilson.
Notwithstanding the foregoing issues, Defendants, at all relevant times, touted their purported turnaround plan for the Company and its three highlighted components: product creation, product activation, and enterprise enablement.
In March 2026, Defendants provided financial guidance for Lululemon's fiscal full year ("FY") of 2026, including net revenue in the range of $11.350 billion to $11.500 billion, representing growth of 2% to 4%, and diluted earnings per share ("EPS") in the range of $12.10 to $12.30 for the year. This guidance, following the aforementioned downturn in the Company's business and image, was issued as a testament to Defendants' purported confidence in their turnaround plan for Lululemon.
The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Lululemon's store traffic and demand for its products was significantly deteriorating as a result of, inter alia, continued negative media and social-media commentary and softer-than-planned new product launches; (ii) the foregoing was likely to have a material negative impact on the Company's business and reputation, rendering its previously issued financial guidance for FY 2026 unrealistic; (iii) Defendants downplayed the true scope and severity of the foregoing issues; (iv) Defendants likewise overstated the strength and durability of Lululemon's overall business and turnaround plan, particularly in North America and mainland China; and (v) as a result, Defendants' public statements were materially false and misleading at all relevant times.
The truth began to emerge on June 4, 2026, when Lululemon issued a press release announcing its financial results for its fiscal first quarter ("Q1") of 2026, ended May 3, 2026. Therein, Defendants sharply reduced their previously issued financial guidance for Lululemon's FY 2026, "now expecting net revenue to be in the range of $11.000 billion to $11.150 billion, representing a decline of 1% to 0%"-significantly below their prior guidance of $11.350 billion to $11.500 billion, representing growth of 2% to 4%-and "diluted [EPS] . . . in the range of $10.95 to $11.15 for the year"-significantly below their prior guidance of $12.10 to $12.30.
On an accompanying earnings call held the same day with investors and analysts to discuss these results, Defendants disclosed that, in Q1 2026, Lululemon had experienced a significant reduction in store traffic across "all demographics" and regions, particularly in China and the United States, which they primarily blamed on softer-than-planned new product launches and negative media and social-media commentary, the latter of which they asserted had "died down" and "subsided" in the quarter.
On this news, Lululemon's stock price fell $10.69 per share, or 8.56%, to close at $114.23 per share on June 5, 2026.
Then, on September 3, 2026, Lululemon issued a press release announcing its financial results for its fiscal second quarter ("Q2") of 2026, ended August 2, 2026. Therein, Defendants reported, inter alia, lower-than-expected net revenue of approximately $2.42 billion, missing consensus estimates by roughly $40 million. Defendants also sharply reduced Lululemon's FY 2026 financial guidance again, "now expecting net revenue to be in the range of $10.350 billion to $10.500 billion, representing a decline of 5% to 7%"-significantly below their previously revised guidance of $11.000 billion to $11.150 billion, representing a decline of 1% to 0%-and "diluted [EPS] . . . in the range of $9.48 to $9.73 for the year"-significantly below their previously revised guidance of $10.95 to $11.15.
On an accompanying earnings call held the same day with investors and analysts to discuss these results, Defendants disclosed that, in Q2 2026, Lululemon had continued to face negative media and social-media commentary, negatively impacting customer traffic, and softer-than-planned responses to certain new product launches, contributing to a moderating sales trend. Defendants further disclosed that these conditions were primarily attributable to the Company's Mainland China segment and "compounded by" additional commentary following an event that Defendants held on the Great Wall of China.
On this news, Lululemon's stock price fell $21.16 per share, or 17.38%, to close at $100.61 per share on September 4, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
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SOURCE: Pomerantz LLP