Lululemon executives said Tuesday that the company plans to sell more of its clothes at full price in fiscal 2026.

The athleisure brand's fourth-quarter results beat estimates, sending the stock higher Wednesday morning.

Lululemon says it's looking to sell more clothes at full price this year, as it works to shore up declining margins. Could its plans help inject some fresh enthusiasm into the stock?

The athletic apparel maker's shares were up 3% in recent trading, a day after the company posted earnings that topped analysts' estimates, and laid out more details on its plans to revamp the business, including relying less on discounts.

Lululemon Athletica stock (LULU) has been pressured for much of the last year amid worries about higher tariffs, a shakeup in its leadership, dispute with its founder, and disappointing sales growth executives have credited to a "newness" problem.

Lululemon interim co-CEO and CFO Meghan Frank said during the company's earnings call Tuesday that its margins were hampered in the quarter by discounts and tariffs, according to a transcript from AlphaSense. However, Co-CEO André Maestrini said Lululemon is already seeing better full-price sales growth this month than it did in the fourth quarter, and expects it could continue to improve this year.

Lululemon's latest moves could lift sentiment around the stock, though many investors may be waiting for more certainty around the company's leadership. Lululemon has yet to announce a new permanent CEO following Calvin McDonald's departure at the end of January.

Lululemon founder Chip Wilson has criticized several of Lululemon's recent decisions, including the lack of a succession plan for McDonald. Wilson on Wednesday called its appointment of new board member Chip Bergh "underwhelming," and said the company's lackluster outlook shows it still needs significant changes to its board and strategy to return to consistent sales growth in the U.S.

Lululemon reported fourth-quarter earnings per share of $5.01 on a 1% year-over-year rise in revenue to $3.64 billion. Both figures beat analysts' estimates compiled by Visible Alpha. However, the athleisure brand's outlook was less impressive.

Lululemon said it expects first-quarter EPS of $1.63 to $1.68 on $2.4 billion to $2.43 billion in sales, with full-year EPS of $12.10 to $12.30 on revenue of $11.35 billion to $11.5 billion. All four ranges came in largely below what analysts were looking for.

Even with Wednesday's gains, Lululemon stock is down more than 20% for the year so far.

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