Nike Has Tumbled 38% in 2026: Is It Time to Switch to Dick’s or Lululemon?

Lululemon Athletica Inc. (LULU) reported a 5% drop in Q2 revenue to $2.4B, lowered forecasts, and expects mid-teens North American sales decline in Q3. New CEO Heidi O’Neill, a Nike veteran, takes over amid investor concerns and a 50% stock drop over the past year. Analysts cite competition, product delays, and China market struggles as key challenges.

Lululemon Athletica Inc. reported Q2 fiscal 2026 revenue of $2.42B, missing expectations, while EPS of $2.92 beat estimates due to a $0.86-per-share tariff-refund benefit. Comparable sales declined 9%, and guidance was reduced, reflecting weaker demand. Shares fell in after-hours trading. Revenue fell 4% YoY, and gross margin increased to 60.5% due to tariff refunds. Management emphasized expense discipline and product improvement.

Lululemon's shares fell 18% to an eight-year low after the company reduced its annual forecast, raising concerns about its turnaround under new CEO Heidi O'Neill. The company has struggled with product innovation and design issues, failing to resonate with customers.

Lululemon (LULU) reported fiscal Q2 results, missing revenue estimates and cutting its full-year outlook for the fourth time since June. Revenue fell 4% YoY to $2.42B, and adjusted EPS dropped 34% to $2.01. The company cited negative brand sentiment, weak product launches, and increased competition. LULU stock has lost over half its value this year and nearly three-quarters over five years.

The S&P 500 rose 12.2% this year, but The Trade Desk (TTD), AppLovin (APP), and Lululemon (LULU) fell 62%, 53%, and 52%, respectively. TTD's revenue grew 3% to $715M in Q2, with weak guidance. APP's revenue rose 53% to $1.92B but missed expectations. LULU's revenue dropped 4% to $2.4B in Q2, with slowing growth in key regions.

Lululemon (LULU) shares fell 18% after Q2 2026 earnings missed expectations, excluding a $0.86 EPS tariff refund benefit. Revenue declined 8% in Americas, and China growth slowed. Management cut full-year guidance, citing weak leggings sales and foot traffic. Shares briefly dipped below $100, 80% off 2024 peak.