Lululemon, a well-known brand in the athletic-wear industry, is adjusting its expansion plans due to a decline in sales. The company now expects to open around 35 new stores this year, down from the previously planned 40. It is also scaling back its pop-up shops, aiming for about 40 locations by the end of 2026, a reduction from 65 at the end of last year. These changes come after the company reported a 4 percent drop in revenue to $2.42 billion for the second quarter of the year. Sales at stores that have been open for at least a year fell by 9 percent, and sales in the Americas, its largest market, declined by 8 percent. One of Lululemon’s biggest challenges is the performance of its signature leggings. Sales of women’s leggings dropped 20 percent compared to the same period last year, as consumers increasingly prefer looser-fitting styles. In response, the company is expanding its product line to include more wide-leg pants, joggers, and other "away-from-body" designs that fit this trend. Interim CEO Meghan Frank acknowledged the shift in consumer preferences during a recent post-earnings call, stating that while the company remains committed to the leggings category, it is adapting to these changes. Lululemon is also facing increasing competition from newer athletic-wear brands such as Alo Yoga and Vuori, according to Neil Saunders, a retail analyst at GlobalData Retail. In addition to competition, the company has faced product recalls and design issues that have affected its reputation. In January, Lululemon removed its $108 "Get Low" leggings from its website after customers reported they were see-through. These issues have also impacted the company’s stock value, which fell nearly 18 percent on Friday, reaching an eight-year low. Lululemon has now reduced its full-year revenue forecast for the second time this year, expecting between $10.35 billion and $10.5 billion, down from a previous estimate of $11 billion to $11.15 billion. Heidi O'Neill, a former Nike executive, became CEO on Tuesday, taking over a company that is trying to regain customers and reignite growth. Sky Canaves, an analyst at Emarketer, noted that O'Neill faces a challenging situation, as the company is in a worse position than when she accepted the role. O'Neill’s leadership will be crucial in addressing the current challenges and steering Lululemon back on a path to recovery.