Lululemon reported disappointing second-quarter results, with revenue falling 4% to about $2.42 billion and comparable sales dropping 9%.

Sales in the Americas declined 8%, while the company’s signature leggings saw sales fall roughly 20% amid weaker demand and increased competition.

Lululemon lowered its full-year revenue forecast to between $10.35 billion and $10.5 billion, compared with its previous estimate of up to $11.15 billion.

The company’s stock dropped sharply following the results as investors reacted to the weaker sales outlook and concerns about the brand losing momentum to rivals such as Alo Yoga and Vuori, CNBC has reported.

The disappointing quarter comes as incoming CEO Heidi O’Neill prepares to take over on September 8, with the new leadership facing pressure to restore growth and strengthen Lululemon’s appeal.