Lululemon Athletica (LULU) reported declining second-quarter fiscal 2026 sales and lowered its full-year outlook as weakness in the Americas continued to weigh on the athletic apparel company\u2019s performance.<\/p>\n\n\n\n
Net revenue decreased 4% year over year to $2.4 billion, or 5% on a constant-currency basis. Comparable sales declined 9%, including a 12% drop in the Americas. International revenue provided some offset, increasing 4%, or 2% in constant currency, although international comparable sales declined 3%.<\/p>\n\n\n\n
Gross profit slipped 1% to $1.5 billion, while gross margin expanded 200 basis points to 60.5%. However, the quarter benefited significantly from $134.5 million in tariff refunds, which boosted gross margin by 560 basis points.<\/p>\n\n\n\n
Operating income fell 13% to $453.7 million, with operating margin declining 190 basis points to 18.8%. Diluted earnings per share fell to $2.92 from $3.10 a year earlier. The tariff refunds and associated interest contributed $0.86 per share to quarterly earnings.<\/p>\n\n\n\n
Management adopted a more cautious outlook following the results. For the third quarter, Lululemon expects revenue between $2.29 billion and $2.32 billion, representing a 10% to 11% decline. Diluted EPS is projected between $0.93 and $0.98.<\/p>\n\n\n\n
For fiscal 2026, the company now forecasts revenue of $10.35 billion to $10.50 billion, representing a 5% to 7% decline. Full-year diluted EPS is expected between $9.48 and $9.73.<\/p>\n\n\n\n
Interim Co-CEO and CFO Meghan Frank said Lululemon is focused on strengthening its product offerings, increasing marketing investments and maintaining disciplined expense management.<\/p>\n\n\n\n
The company ended the quarter with $1.4 billion in cash and equivalents and repurchased $330 million of stock. Inventory declined 1% in value and 7% on a unit basis.<\/p>\n\n\n\n
Lululemon is also preparing for a leadership transition, with incoming CEO Heidi O\u2019Neill expected to take the helm next week.<\/p>\n\n\n\n
The challenge ahead will be restoring growth\u2014particularly in the Americas\u2014while protecting the premium positioning and profitability that have historically defined the Lululemon brand.<\/p>\n","protected":false},"excerpt":{"rendered":"
Revenue fell 4% to $2.4 billion and comparable sales dropped 9%, while management outlined plans to strengthen products and marketing ahead of incoming CEO Heidi O\u2019Neill\u2019s arrival. Lululemon Athletica (LULU) reported declining second-quarter fiscal 2026 sales and lowered its full-year outlook as weakness in the Americas continued to weigh on the athletic apparel company\u2019s performance. […]<\/p>\n","protected":false},"author":1,"featured_media":1382,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_social_meta":[],"jnews_override_counter":[],"jnews_post_split":[]},"categories":[361,321,381],"tags":[420,507,418,417],"coauthors":[453],"_links":{"self":[{"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/posts\/11150"}],"collection":[{"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/comments?post=11150"}],"version-history":[{"count":1,"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/posts\/11150\/revisions"}],"predecessor-version":[{"id":11151,"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/posts\/11150\/revisions\/11151"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/media\/1382"}],"wp:attachment":[{"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/media?parent=11150"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/categories?post=11150"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/tags?post=11150"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/coauthors?post=11150"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}