Lululemon has lowered its annual sales and profit forecasts after weak product launches and “negative commentary in the media” hurt customer traffic and demand in North America.

The athletic apparel retailer issued the weaker outlook on Thursday as interim chief executive Meghan Frank said recent challenges had affected the brand’s performance.

“We experienced spikes of negative commentary in the media and on social channels with regard to our brand, which had an impact on traffic and overall top line performance,” Frank told analysts during the company’s earnings call.

She also admitted that “not all of our product launches have met our expectations.”

Lululemon now expects fiscal 2026 sales between $11 billion and $11.15 billion, below its previous forecast of up to $11.5 billion.

The company also reduced its earnings guidance by more than $1 per share.

Shares in the retailer fell 11 percent in extended trading after the announcement. The stock has already dropped around 40 percent this year.

Despite beating Wall Street expectations in the latest quarter, Lululemon continued to struggle in the Americas, where comparable sales fell 5 percent. International sales, particularly in China, remained stronger.

Frank pointed to criticism linked to the company’s proxy battle with founder Chip Wilson and concerns about some product materials.

“These stories have died down and subsided,” she said. “But we have not yet seen a return to our pre-disruption ... trends.”

The company said tariffs, discounting and weaker store traffic also continue to pressure profits.