lululemon athletica inc. lowered its fiscal 2026 outlook after second-quarter revenue declined 4% year over year to $2.4 billion and comparable sales fell 9%, or 10% on a constant-dollar basis. The Americas was the weakest region, with revenue down 8% and comparable sales down 12%, while leggings sales dropped roughly 20% as consumers shifted to looser silhouettes. Management now expects full fiscal 2026 revenue of $10.35 billion to $10.50 billion, a decline of 5% to 7%, and earnings per share of $9.48 to $9.73; for the third quarter it guided revenue of $2.29 billion to $2.32 billion, down 10% to 11%, and earnings per share of 93 cents to 98 cents versus $2.59 a year earlier. Second-quarter operating income fell 13% to $453.7 million and operating margin slipped to 18.8%, though the quarter included $134.5 million in tariff refunds that added 560 basis points to gross margin and $0.86 per share after tax. The company ended the quarter with $1.4 billion in cash and cash equivalents, $593.7 million of available revolver capacity and $1.7 billion of inventory, down 1% year over year, and repurchased 2.7 million shares for $330 million while operating 825 company-operated stores globally as of Aug. 2, 2026.
Lululemon Athletica Inc.lululemon cut its fiscal 2026 outlook after Q2 revenue fell 4% and comparable sales dropped 9%, with operating income down 13%.
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