Lululemon Athletica cut its outlook for the second time this year following another quarter of declining sales in the company's Americas business.

The activewear retailer said Thursday it now expects annual sales to be $10.35 billion to $10.50 billion, down from its previous guidance of $11.00 billion to $11.15 billion.

It also lowered its projection for earnings per share to $9.48 to $9.73, down from $10.95 to $11.15 for the year.

The company already cut its outlook earlier this year after reporting first-quarter results.

Lululemon said it expects third-quarter revenue to be $2.29 billion to $2.32 billion, which would be below analysts' forecast of $2.53 billion. It anticipates earnings per share of 93 cents to 98 cents.

The company said it is taking a prudent approach with its guidance because the challenging dynamics it has faced in recent quarters hasn't gone away.

Profit was $329.2 million, or $2.92 a share, compared with $370.9 million, or $3.10 a share, a year earlier. Profit included 86 cents a share from tariff refunds and associated interest, net of tax.

Revenue in the second quarter declined 4% to $2.42 billion, below the $2.46 billion that analysts expected. Sales in the Americas slipped 8%, while international revenue was up 4%.

Same-store sales dropped 9%, while Wall Street was projecting a 4.6% decline.

Executives said in June that first-quarter sales were dented by negative online narratives about the brand. Several product launches failed to meet expectations, as Lululemon lost more North American customers to competitors such as Alo and Vuori.

Heidi O'Neill is slated to step in as chief executive next week, a move that is highly anticipated by shareholders. Investors are hoping she can steer a turnaround after a series of bad moments for the brand, many of which have played out publicly.

In the spring, the company made peace with its founder Chip Wilson, who had spent years criticizing the company and trying to overhaul the board via a proxy fight. Wilson, who is the company's biggest shareholder, settled with Lululemon in the spring after a long negotiation process. He agreed to sign a nondisparagement agreement in exchange for the right to name two board directors.

After O'Neill was appointed as chief executive, shares dropped, as investors critiqued her tenure as a former Nike executive. Analysts say they want to see her stop expanding stores, focus on improving North American sales and refocus on core products and traditional color palettes.