Lululemon just reset expectations — and investors didn't love it. Shares sank as much as 20% in after-hours trading Thursday after the company cut its full-year sales and profit forecast, citing “challenging dynamics” heading into the back half of the year. The timing stings: the guidance cut lands just days before Nike veteran Heidi O'Neill steps in as CEO. One analyst noted Lululemon carries no debt — the real challenge now is getting sales growing again. Read more:

LULULEMON'S EXEC SAYS THAT FOR Q3 IT EXPECTS NORTH AMERICA TO DECLINE IN THE MID-TEENS — WITH THE U.S. ALSO IN THAT RANGE AND CANADA LOWER — WHILE BOTH CHINA MAINLAND AND THE REST OF THE WORLD ARE EXPECTED TO INCREASE 3% TO 5%, ADDING THAT THE MACRO ENVIRONMENT HAS BEEN CHALLENGING IN CHINA FOR SOME TIME.

LULULEMON ATHLETICA'S EXEC SAYS IT IS INCREASING MARKETING INVESTMENT IN THE BACK HALF OF THE YEAR, NOTING THAT SLOWER-THAN-EXPECTED TOP-LINE TRENDS WILL NECESSITATE ADDITIONAL SEASONAL CLEARANCE, AND THAT ITS MIDDLE EAST FRANCHISE BUSINESS CONTINUES TO BE IMPACTED BY THE CONFLICT IN THE REGION, AS DOES TOURISM IN EUROPE.

Lululemon Athletica lowered its full-year outlook for a second straight quarter, signaling deep challenges for incoming Chief Executive Officer Heidi O’Neill. The company’s shares sank more than 15% in late trading. So far this year, Lululemon shares have declined more than 40%. Read more: 📷: Kamara Morozuk/Bloomberg

LULULEMON ATHLETICA'S EXEC SAYS IT EXPECTED A BETTER RESPONSE THAN IT IS SEEING AS IT ENTERS THE SECOND HALF OF THE YEAR, HAVING SEEN A GREATER-THAN-EXPECTED Q2 SLOWDOWN IN CORE CATEGORIES INCLUDING LEGGINGS, AS WELL AS OVERALL SOFTNESS IN BAGS - CONF CALL

LULULEMON CUT ITS FY REVENUE GUIDANCE TO $10.35 BLN-$10.50 BLN FROM $11.0 BLN-$11.15 BLN AND ITS FY EPS GUIDANCE TO $9.48-$9.73 FROM $10.95-$11.15, AND SEES Q3 REVENUE OF $2.29 BLN-$2.32 BLN VERSUS $2.53 BLN EXPECTED WITH Q3 EPS OF 93C-98C VERSUS $2.41 EXPECTED.