Quarterly ResultSep 3, 2026, 04:28 PM
lululemon Q2 Revenue Down 4% to $2.4B; EPS $2.92; Full-Year Outlook Revised
AI Summary
lululemon athletica inc. announced its second quarter fiscal 2026 financial results, reporting a 4% decrease in net revenue to $2.4 billion and a 9% decrease in comparable sales. Diluted EPS was $2.92, down from $3.10 in the prior year. The company noted a significant positive impact from $134.5 million in tariff refunds, which boosted gross margin and EPS. Despite challenging dynamics, the company repurchased $330 million of its shares. Management revised its full-year 2026 revenue outlook to a decline of 5% to 7% and expects Q3 revenue to decrease by 10% to 11%.
Key Highlights
- lululemon athletica inc. reported Q2 2026 net revenue of $2.4 billion, a 4% decrease YoY.
- Diluted EPS for Q2 2026 was $2.92, down from $3.10 in Q2 2025.
- Comparable sales decreased 9% YoY (10% on a constant dollar basis).
- Gross margin increased 200 basis points to 60.5%, aided by $134.5 million in tariff refunds.
- Company repurchased 2.7 million shares for $330.0 million in Q2 2026.
- Full-year 2026 revenue outlook revised to a decline of 5% to 7%.
- Q3 2026 revenue expected to be in the range of $2.290 billion to $2.320 billion, a 10% to 11% decline.
Price Impact
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