Lululemon Plunges 15% on Outlook Cut; Software Stocks Rally in After-Hours Trading

Shares of Lululemon Athletica plummeted in late trading Thursday after the apparel maker severely reduced its full-year outlook, overshadowing a series of strong earnings reports from software companies like Samsara and UiPath that sent their stocks soaring.

Retailers Falter on Weak Forecasts

Lululemon (LULU) stock plunged 15% after management slashed its full-year earnings per share guidance to a range of $9.48–$9.73, far below the analyst consensus of $10.84. The weak outlook followed a disappointing second quarter where total revenue fell 4% to $2.42 billion and total comparable store sales declined 9%. While reported Q2 EPS of $2.92 topped targets, the company noted the figure was artificially lifted by a one-time tariff refund.

Oxford Industries (OXM), the parent company of Tommy Bahama, also fell 15% after issuing a disappointing forward outlook. The company guided for a significant third-quarter adjusted loss per share of ($1.40)–($1.20) and cut its full-year sales forecast, citing persistent traffic declines.

Software and Tech Stocks Surge

A starkly different picture emerged in the technology sector, where several companies rallied on strong results and optimistic guidance.

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• UiPath (PATH): Climbed 13% after reporting solid Q2 revenue that beat estimates and issuing an upbeat full-year revenue forecast of $1.789–$1.794 billion.
• Samsara (IOT): Surged 11% following a strong second-quarter performance that beat analyst estimates on both earnings and revenue. The company raised its full-year guidance, citing strong demand.
• Docusign (DOCU): Rose 7% after posting a clean beat-and-raise Q2 report and nudging its full-year revenue outlook higher to a range of $3.50–$3.51 billion.

Guidance Proves Pivotal in Mixed Results

Investor focus on forward-looking statements was a key theme, as weak guidance punished several companies despite solid current-quarter results.

Guidewire Software (GWRE) plummeted 19% in extended trading. The drop was triggered by weak first-quarter revenue guidance, which overshadowed a fourth-quarter earnings and revenue beat. Similarly, Asana (ASAN) dropped 12% as its soft third-quarter profitability targets disappointed investors, even as it posted a minor Q2 earnings beat.

Other notable movers included Smith & Wesson (SWBI), which surged 8.6% after its Q1 net sales comfortably beat consensus, and Planet Labs (PL), which jumped 5% after reporting a surprise Q2 profit.