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Lululemon slows U.S. store expansion after North America sales slide

The company cut its planned net new stores to 35 this year, with a 12% drop in North American sales reported alongside a second full-year guidance reduction.

Reported · Written up by our desk · Residential

Lululemon is dialing back its U.S. expansion plans as lagging sales prompt a more measured approach to opening new locations, management said during its second-quarter earnings call, according to Bisnow. The company now expects to open a net 35 new stores this year, down from a prior plan made three months earlier, and it is reducing plans for pop-up stores by nearly 40%. Management also said North America will have only a handful of new openings this year, with about half of those tied to pop-up conversions designed to test productivity before committing to full-time locations. Alongside the store-plan cuts, Lululemon reported a 12% decline in North American sales, and it said revenue in the Americas fell 8% year-over-year. Global profits slipped 1% to $1.5B, which included about $135M in tariff refunds from the federal government. Lululemon said it has reduced full-year guidance for the second time this year and repurchased $330M of stock over the quarter. The retailer also noted that its expansion strategy is likely to extend into next year, as it continues to “take a hard look at everything” given current performance, Bisnow reported.

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