Lululemon has cut its full-year forecast, as second-quarter sales plummeted due to a weakened performance in its Americas region.

For the quarter ending 2 August, the athleisure brand reported that despite international revenue increasing 4 per cent, overall revenue fell to £1.78bn ($2.4bn), driven by revenues in America plunging 8 per cent.

Lululemon’s comparable sales declined 12 per cent in the Americas and 3 per cent internationally; meanwhile, gross profit dipped 1 per cent to £1.11bn ($1.5bn), and operating income declined 13 per cent to £336.15m ($453.7m), with operating margin falling to 18.8 per cent.

The retailer revealed it has lowered its full-year outlook and now expects revenue of £7.66bn ($10.35bn) to £7.77bn ($10.5bn), representing a decline of 5 per cent to 7 per cent.

Its brick-and-mortar expansion fared well, with the brand opening nine net new company-operated stores during the quarter bringing the total to 825 stores globally. Earlier today, lululemon also announced the opening of its first store in Austria. 

Interim co-CEO and CFO Meghan Frank said the company was taking a “prudent approach” to its revised outlook, with a focus on strengthening products, increasing marketing investment and maintaining disciplined expenses.

Frank said: “Looking ahead, we have confidence in the strength of the lululemon brand, the deep connection we have with our guests and ambassadors, and the significant opportunities we see to drive long-term growth.”

Lululemon interim co-CEO, president and chief commercial officer André Maestrini added: “We remain confident in our ability to take the right steps to strengthen our performance and deliver sustainable growth over time.

“I would like to thank our teams around the world for their focused efforts and continued commitment to lululemon.”

The brand’s financial update comes as it is set to welcome its new CEO Heidi O’Neill next week. O’Neill has replaced former chief executive Calvin McDonald, who departed the business in January after seven years, to lead multinational hair care and cosmetics giant Wella Company.

Click here to sign up to Retail Gazette‘s free daily email newsletter