Jim Cramer declared Lululemon a "thoroughly broken stock" on his September 10 Mad Money segment, saying he cannot give a good reason to buy the shares even after their steep declines. The stock closed at $98.97 on Friday, down 52.48% year to date and 76.79% over five years. For the quarter ended August 2, 2026, Lululemon reported revenue of $2.42 billion, down 4.3% year over year, with global comparable sales falling 9% and Americas comps dropping 12%. Gross margin expanded 200 basis points to 60.5%, but 560 basis points of that came from an IEEPA tariff refund of $134.5 million pre-tax, which contributed 86 cents to EPS, while operating income fell 13.39% to $453.7 million. The company guided third-quarter revenue to $2.29 billion to $2.32 billion, a decline of 10% to 11%, with diluted EPS of 93 to 98 cents versus $2.59 a year ago, and cut full-year revenue to $10.35 billion to $10.50 billion and EPS to $9.48 to $9.73. Heidi O'Neill began as CEO on September 8, 2026, inheriting an inconsistent product cycle, a traffic problem in the two largest markets, and guidance that assumes no further tariff recovery.
Lululemon Athletica Inc.Guidance cut to a 10-11% Q3 revenue decline and full-year EPS reduction, with operating income down 13.39%.
