Lululemon saw its sales fall in its key US market at the start of the financial year, as the retailer tries to resume business after the feud between its board and founder came to an end.

Founder Chip Wilson agreed to stop challenging Lululemon’s board in late May, following the appointment of Laura Gentile and Marc Maurer to the board. Wilson’s interventions, however, did not prevent the retailer from seeing its sales fall in the US during the first quarter.

Total revenue increased 4 per cent to $2.5 billion for the quarter (up 2 per cent in constant currency). This was buoyed by a 30 per cent revenue increase in Mainland China, where the brand recorded $478.4 million in revenue. The Americas, meanwhile, declined by 3 per cent.

Global comparable sales rose 1 per cent on a reported basis but decreased 2 per cent on a constant dollar basis. The numbers were hurt by the weak performance in the Americas, where comparable sales slid 5 per cent on a reported basis and 6 per cent on a constant currency basis.

The company ended the quarter with $195 million in profit, representing a 38 per cent decline from the same point last year.

Lululemon increased its store count by five during the quarter, adding four net new stores around the world and one in Mainland China. Its total store count now sits at 816, up from 770 at the same time last year.

The recently appointed CEO, Heidi O’Neill, has been tasked with turning around the long-declining share price of Lululemon, which has fallen by more than 60 per cent in the last 12 months. But the early signs of the market after this latest earnings release show that it is likely to take yet another heavy hit.

For FY26, the company expects net revenue to be flat to down 1 per cent.