Lululemon Athletica Inc.LULU
▼ NegativeCapitalrelevance
Weak Q2 results and lowered full-year 2026 outlook, with projected revenue decline and stock drop.
Impact on stocks 1
Consumer Discretionary
Lululemon Athletica Inc.In early September 2026, lululemon athletica inc. reported second-quarter results showing year-over-year declines in sales to US$2,415.63 million and net income to US$329.22 million, alongside lower earnings per share. The company also cut its full-year 2026 outlook, now projecting a 5% to 7% revenue decline to about US$10.35–US$10.50 billion, even as gross margin benefited from one-off tariff refunds. The revised guidance and expected 10% to 11% third-quarter revenue decline have led to a 16.7% drop in the stock, raising questions about the bull case. The company's narrative projects US$12.2 billion revenue and US$1.6 billion earnings by 2029, with a fair value estimate of US$127.73, implying a 27% upside. However, pessimistic analysts see flat revenues around US$10.9 billion and lower margins by 2029, suggesting the stock might be worth just US$107.30.
Lululemon Athletica Inc.Weak Q2 results and lowered full-year 2026 outlook, with projected revenue decline and stock drop.