Lululemon Athletica Inc.LULU
▼ NegativeDemandrelevance
Q2 revenue miss and lowered FY26 guidance due to weak demand, especially in Americas.
Impact on stocks 1
Consumer Discretionary
Lululemon Athletica Inc.Lululemon has lowered its full-year 2026 guidance after reporting second-quarter revenue of $2.4 billion, down 4% from $2.53 billion a year earlier and below expectations. The decline was driven by an 8% drop in the Americas and China mainland, where revenue grew 4%, while international net revenue rose 4%. Comparable sales fell 9% overall, with a 12% decline in the Americas and a 3% decrease internationally. Interim co-CEO and CFO Meghan Frank attributed the softness to negative media and social commentary that hurt traffic and dampened response to new product launches. For the full year, Lululemon now expects net revenue between $10.35 billion and $10.5 billion, down 5% to 7%, and diluted EPS of $9.48 to $9.73, compared with prior guidance of $11.0 billion to $11.15 billion in revenue and EPS of $10.95 to $11.15. The company also reported Q2 net income of $329.22 million, or $2.92 per diluted share, down from $370.9 million and $3.10 a year earlier, with gross margin improving to 60.5% thanks to $134.5 million in tariff refunds.
Lululemon Athletica Inc.Q2 revenue miss and lowered FY26 guidance due to weak demand, especially in Americas.