Competitive PressureEmerging brands like Alo and Vuori are gaining share of wallet, especially among younger consumers, which is closing in on LULU's market position.
Margin PressureThe margin picture into F2026 is unclear, with ongoing markdown pressure and investment needs indicating a higher probability of another year of EBIT margin pressure.
Sales PerformanceNorth American sales growth has steadily declined, with 2Q25 sales up just 1% and comps down -4%, marking a new low.