Lululemon Q2 Revenue Falls 4%, FY26 Guidance Cut Again; Tariff Refund Masks Core EPS Decline
LULU is trading near its 52-week low of $104.44 (1.0% below the low) on elevated volume (2.4× avg).
Summary
Lululemon's Q2 revenue fell 4% and comparable sales dropped 9%, with a $134.5M tariff refund masking a 34% core EPS decline. Full-year guidance was cut again, and Q3 guidance implies further deterioration.
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 comps 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, reflecting continued Americas weakness.
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Q3 Guidance Implies Steep Sequential Decline
Q3 FY2026 net revenue guided to $2.290B-$2.320B and EPS to $0.93-$0.98, down sharply from Q2's reported $2.92.
Analysis · LULU · Manufacturing
Lululemon's Q2 results confirm accelerating weakness in its core Americas business. Net revenue fell 4% to $2.416B and comparable sales dropped 9%, with Americas comps down 12%. The reported $2.92 EPS is flattered by a one-time $134.5M IEEPA tariff refund worth $0.86 per share — excluding it, core EPS was roughly $2.06 versus $3.10 a year ago, a 34% decline. Management cut full-year guidance again to $10.350B-$10.500B in revenue and $9.48-$9.73 in EPS, and Q3 EPS guidance of $0.93-$0.98 implies a steep sequential drop. The stock trades near its 52-week low, and the company continues aggressive buybacks — $695.1M in the first half plus another $118.8M through late August — which supports EPS but does not address the underlying demand problem.
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 $103.40 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.