Lululemon cut its annual sales forecast again after another tough quarter, signaling ongoing challenges for the activewear retailer. The company now expects annual sales to be $10.35 billion to $10.5 billion, down from its previous guidance of $11 billion to $11.15 billion.

The revised outlook reflects weaker-than-expected demand, particularly in North America, where consumers have pulled back on discretionary spending. Lululemon has faced intense competition from rivals like Nike and Alo Yoga, as well as pressure from shifting fashion trends.

This marks the second time this year the company has lowered its guidance, raising concerns about its growth trajectory. Executives cited inventory issues and a slower start to key product launches as contributing factors.

Despite the setback, Lululemon remains focused on international expansion and digital initiatives to regain momentum. Analysts will watch upcoming earnings closely for signs of stabilization.