Lululemon Athletica reported a 4% year-over-year revenue decline to $2.4 billion in its second quarter, with comparable sales down 9%, and cut its full-year revenue forecast to $10.35 billion-$10.50 billion and diluted EPS outlook to $9.48-$9.73. Americas comparable sales fell 12% and international comparable sales declined 3%. Diluted EPS came in at $2.92, but $0.86 of that came from tariff refunds and related interest, with the company receiving $134.5 million in tariff refunds and gross margin benefiting by 560 basis points from the refunds. Jim Cramer said on Mad Money that Lululemon has gone from a premier growth stock to a thoroughly broken stock and maybe a broken company, citing a crowded athleisure market now featuring Alo Yoga, Vuori, Athleta, and Fabletics, and adding that buying the stock because it is cheap has been a sucker's game. Heidi O'Neill, a Nike veteran, became CEO on September 8 after an extended transition, and Cramer said the quarter could have been a kitchen sink quarter that cleared out bad news before she took over, though he remains unwilling to buy.
Lululemon Athletica Inc.Q2 revenue fell 4% to $2.4B with comps down 9%, and the company cut its full-year revenue and EPS outlook.
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