Lululemon has cut its annual revenue and profit forecasts for the second time this year after the sportswear company reported weaker sales. 

The announcement has increased concerns about the brand’s performance, particularly in the Americas, where comparable sales declined significantly. 

The company reported that second-quarter revenue fell 4% to $2.4 billion, while comparable sales declined 9%. 

Lululemon’s results show that the company is facing difficulty maintaining the rapid growth that previously helped establish it as one of the world’s best-known premium athletic-wear brands. 

The weakness has been particularly noticeable in the Americas. 

The company is also dealing with slower growth in other important markets, increasing pressure on management to find ways of attracting customers and strengthening sales.

Lululemon is preparing for a leadership transition at the same time. Incoming CEO Heidi O’Neill is expected to take over as the company works to improve its performance and respond to changing consumer demand.

Investors reacted negatively to the latest results, with the company’s shares falling sharply. 

The situation leaves Lululemon facing an important period in which its new leadership will need to improve sales, strengthen the brand’s appeal and restore investor confidence. 

Sources: Reuters, Lululemon Newsroom, Yahoo Finance