U.S. stock index futures steady with nonfarm payrolls on deck

Lululemon Athletica (LULU) reported Q2 earnings of $2.92 per share, down from $3.10 last year, with revenue falling 4.4% to $2.415B. The company cut its FY26 outlook, expecting EPS of $9.48-$9.73 and revenue of $10.35B-$10.5B, down from prior estimates. Q3 revenue is projected to decline 10-11%. Shares dropped 18% in overnight trading.

Adobe (ADBE) announced Anil Chakravarthy will become CEO on 1 December 2026, with Shantanu Narayen moving to executive chair. Chakravarthy currently leads Adobe’s Customer Experience Orchestration business. Adobe's revenue grew from $5.18bn in Q1 2024 to $6.62bn in Q2 2026, with net income reaching $1.71bn. Shares closed at $280.76 on 3 September 2026, down 1.9% on the day.

Lululemon (LULU) reported a 4% revenue decline to $2.4B in Q2 2026, with net income dropping to $329.2M. Despite this, it maintained a 60.5% gross margin and a GF Score of 77/100. The company's stock is seen as 66.1% undervalued at $121.77. Strengths include high profitability, brand loyalty, and international expansion, while weaknesses involve declining sales and high SG&A expenses.

Lululemon Athletica (LULU) reported Q2 2026 revenue of $2.4B, down 4% YoY, with comparable sales declining 10% globally. Gross profit rose to $1.46B (60.5% margin), but net income fell to $329M ($2.92 per share). The company reduced full-year guidance, expecting revenue to decline 5-7% and EPS to range from $9.48 to $9.73. LULU repurchased 2.7M shares at $120 each and plans to cut costs and store openings.

Lululemon (LULU) shares fell 18% after hours on Thursday after missing Q2 revenue estimates and cutting full-year guidance. Michael Burry, Lululemon's largest shareholder, called the stock 'the trickster in my portfolio.' Weakness in China and leadership transition concerns contributed to the selloff. The stock closed at $121.77, down 42% year-to-date.

Lululemon reported Q2 FY26 revenue of $2.42bn, down 4% YoY, missing guidance. North America revenue fell 8% YoY, while China saw its first fixed-FX decline since market entry. Core categories like leggings declined 20% YoY. Operating margins deteriorated, and guidance was cut again. Analysts cite structural issues in core categories and intensifying competition from brands like Alo Yoga.