Lululemon is applying the brakes to its North American real estate program as weakening sales force the Vancouver-based athleticwear retailer to reassess expansion costs.

The company now expects 35 net new stores globally in 2026, down from 40 in its previous forecast.

Only about 10 openings are planned for North America, including seven in Mexico, although Lululemon did not specify whether any of the remaining locations will be in Canada. The company has continued investing in select Canadian properties, including new-format stores and relocations in Montreal, St-Bruno, Que., and Vancouver.

Management said it is scrutinizing every new-store and optimization deal and plans to reduce its pop-up fleet to 40 locations by year-end, from 65 at the end of 2025. The pullback follows an 8% revenue decline in the Americas during the second quarter. Canadian revenue fell 11%, or 9% in constant currency, while U.S. revenue dropped 8%.

The retailer nevertheless added nine net stores during the quarter, bringing its global portfolio to 825 locations. Square footage was 11% higher than a year earlier, reflecting 41 net openings since the second quarter of 2025.