lululemon athletica inc. reported second-quarter fiscal 2026 results that paired tariff-related earnings support with continued demand weakness, and lowered its full-year outlook. The company recognized $134.5 million of IEEPA tariff refunds and $4.1 million of associated interest, which increased diluted earnings per share by $0.86, while second-quarter gross margin rose 200 basis points year over year to 60.5%, primarily on the refund benefit. Even so, operating income declined 13% year over year to $453.7 million and operating margin fell to 18.8%, as revenue declined 4% to $2.4 billion and comparable sales fell 9% and 10% on a constant-dollar basis. The Americas remained the largest pressure point with an 8% revenue decline and a 12% drop in comparable sales, while China Mainland revenue rose 4% on a reported basis but fell 2% in constant dollars. Management now expects full-year revenue of $10.35 billion to $10.50 billion, a decline of 5% to 7%, with earnings per share of $9.48 to $9.73, and third-quarter revenue of $2.29 billion to $2.32 billion, a decline of 10% to 11%, with earnings per share of 93 cents to 98 cents.
Lululemon Athletica Inc.Q2 revenue fell 4% with comparable sales down 9-10% and full-year outlook cut on continued demand weakness.
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