Lululemon Q2 Revenue Falls 4%, Cuts FY26 Outlook Again; Tariff Refunds Mask Core Weakness
LULU is trading near its 52-week low of $104.44 (4.8% above the low) on elevated volume (2.0× avg).
Summary
Lululemon reported Q2 revenue down 4% and comparable sales down 9%, with EPS of $2.92 boosted by a one-time $134.5M tariff refund. Full-year guidance was cut again, and Q3 EPS guidance of $0.93-$0.98 signals continued pressure.
Key Events · Earnings and Guidance · LULU
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Q2 Revenue and Comps Decline
Net revenue fell 4% to $2.416B; comparable sales dropped 9% overall, with Americas comparable sales down 12% and international down 3%.
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Tariff Refund Masks Core EPS Decline
Diluted EPS of $2.92 included a one-time $134.5M IEEPA tariff refund plus $4.1M interest, worth $0.86 per share. Excluding this, core EPS was approximately $2.06 versus $3.10 a year ago.
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Full-Year Guidance Cut Again
FY2026 net revenue guidance lowered to $10.350B-$10.500B (down 5-7%) and diluted EPS to $9.48-$9.73, down from prior expectations and reflecting continued Americas weakness.
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Q3 Guidance Implies Steep Sequential Decline
Q3 FY2026 net revenue guided to $2.290B-$2.320B (down 10-11% YoY) with diluted EPS of $0.93-$0.98, well below Q2's $2.92.
Analysis · LULU · Manufacturing
Lululemon's Q2 results confirm the deterioration flagged in June: revenue fell 4% to $2.42B, comparable sales dropped 9% (Americas down 12%), and operating income fell 13%. The headline EPS of $2.92 includes a one-time $134.5M IEEPA tariff refund worth $0.86 per share — without it, core EPS would have been roughly $2.06, well below last year's $3.10. Management cut full-year revenue guidance to $10.35B-$10.50B (down 5-7%) and EPS to $9.48-$9.73, while Q3 guidance of $0.93-$0.98 implies a sharp sequential decline. The stock trades near its 52-week low, and this filing provides the first complete picture of how deep the Americas slowdown really is.
How filings like this one have moved
In the 30 days to Sep 14, 2026, 35.8% of the 1051 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.43%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, LULU was trading at $109.50 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $14.5B. The 52-week trading range was $104.44 to $225.98. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.