Lululemon Athletica Q2 Results Drop, Warns On Weak Q3 Revenues, Cuts FY26 View; Stock Down 18%

Lululemon stock fell 17.8% in pre-market trading after reporting Q2 FY2026 results. Revenue of $2.42B missed estimates, with comparable sales down 9-10%. EPS beat was inflated by a one-time $0.86 benefit. Guidance was cut, with full-year revenue now expected to decline 5-7%. The drop extended to peers, with broader market offering no support. According to the company, negative social media commentary impacted the quarter.

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.

Lululemon (LULU) cut its full-year revenue and earnings forecasts, citing weak sales in China and the Americas. Q2 revenue was $2.42B, missing estimates. The company faces competition from rivals like Alo Yoga and Vuori. New CEO Heidi O’Neill starts next week. Shares fell 18% in extended trading.