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Max Knoblauch

Lucid reports worse-than-expected Q1 loss, revenue, suspends full-year production guidance

Luxury EV maker Lucid reported its first-quarter earnings after markets closed on Tuesday. Its shares fell more than 2% after-hours, following a 6.5% drop at close.

For Q1, Lucid reported:

  • An adjusted loss of $2.82 per share, compared to the $2.53 loss per share expected by Wall Street analysts polled by FactSet.

  • $282.5 million in revenue, versus the $358.5 million consensus estimate.

Last month, Lucid announced that it produced 5,500 vehicles in Q1 and reaffirmed its full-year production guidance of between 25,000 and 27,000 vehicles. But on its Tuesday earnings call, the company said it was suspending that guidance.

“With Silvio now on board and conducting his review of the business, we are suspending our prior guidance and will provide a full updated outlook at our Q2 earnings call,” said CFO Taoufiq Boussaid. “I want to be clear, this is a governance decision. Near-term demand conditions remain uneven and we are managing our production cadence accordingly.”

The company also highlighted its upcoming midsize SUV, with “expected pricing starting under $50,000.” The vehicle is expected to launch before the end of the year and compete with Rivian’s R2 and Tesla’s Model Y.

Q1 marks the first earnings report for new CEO Silvio Napoli, who took over for interim CEO Marc Winterhoff (who’d led the company for more than a year following Peter Rawlinson’s exit). Lucid recently announced an expansion of its robotaxi partnership with Uber, which is now its second-largest shareholder after Saudi Arabia’s PIF sovereign wealth fund.

Lucid shares have had a long stretch of poor performance amid various dilutive events and a broader contraction across the EV industry. The stock is down about 80% from a recent high in July 2025 and down about 40% year to date. As of Tuesday afternoon, the company’s roughly $2.1 billion market cap is less than a quarter of the approximately $9.5 billion that Saudi Arabia’s PIF has sunk into it.

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Lululemon’s stretch getting tested: Stock plunges after after outlook is cut

Lululemon shares are down double digits in premarket trading after the company cut its full-year sales and profit outlook, overshadowing a Q1 beat and raising fresh concerns about the brand’s turnaround efforts.

The company now expects fiscal 2026 revenue to be flat to down 1%, compared with its prior forecast for 2% to 4% growth. Guidance for full-year diluted earnings per share was dragged down to a range of $10.95 to $11.15, below the company’s previous guidance of $12.10 to $12.30 and well below Wall Street’s estimate of $13.26.

Key numbers for Q1:

  • EPS of $1.69 vs. the $1.68 expected.

  • Revenue of $2.47 billion vs. the $2.43 billion expected.

The modest top-line beat masked a widening divergence between Lululemon’s geographic markets. While international revenue rose 22% overall with a 30% increase in Mainland China, the bigger problem remains North America, where revenue fell 5%.

Interim co-CEO and CFO Meghan Frank acknowledged during the earnings call that recent product rollouts underperformed. A highly anticipated yoga campaign failed to generate its expected “halo effect” across broader product lines.

Profitability metrics took a major hit, with gross margins contracting by 410 basis points to 54.2% due to mounting tariff costs and promotional markdowns. Operating income consequently fell 37% year over year to $276.9 million.

“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 said during the earnings call. “And second, not all of our product launches have met our expectations. While we have had several successful launches so far this year, we have seen others as we start Q2 not generate the anticipated guest response.”

Lululemon’s valuation has already been steadily compressing for years. While it was once one of retail’s richly valued stocks, investors have been questioning whether the company can return to the double-digit growth era.

The results also arrive during a leadership transition. Lululemon announced back in April that former Nike executive Heidi O’Neill is set to take over as CEO in September, with investors looking to her to revive growth in North America and restore the brand’s growth.

As Lululemon faces both macroeconomic pressure and brand-specific challenges, its stock has dropped around 40% year to date.

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Paige Oamek

US job growth skyrocketed in May, blasting past expectations

The US economy added 172,000 jobs in the month of May, the Bureau of Labor Statistics reported Friday, sending 10-year Treasury yields higher.

The strong May job market surprised economists. Experts had predicted only 85,000 new jobs — just half the reported number. The unemployment rate held steady at 4.3%, as expected.

The job growth story is a hopeful spot for the economy as consumers continue to feel inflationary pressure from the Iran war.

Job gains were buoyed by the leisure and hospitality sector, which added 70,000 jobs, as well as local government, healthcare, and education.

Both the March and April jobs reports were revised upward, making them collectively 93,000 higher than previously reported.

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