Overview

• Lululemon lowered full-year guidance to $10.85 billion to $11.0 billion in revenue and $12.77 to $12.97 in EPS, and forecast Q3 revenue of $2.47 billion to $2.50 billion with EPS of $2.18 to $2.23.
• Executives expect about a $240 million reduction to 2025 gross profit from higher U.S. tariffs and the end of the de minimis exemption, with a potential operating-margin impact around $320 million in 2026.
• Q2 EPS of $3.10 beat estimates while revenue of $2.53 billion slightly missed; total comparable sales rose 1% as international revenue grew 22% and the Americas increased 1%.
• CEO Calvin McDonald acknowledged stale assortments and longer product life cycles in core casual categories, with plans to lift fresh styles to roughly 35% of the assortment by spring and accelerate go-to-market speed.
• The company is taking targeted U.S. price increases alongside higher markdowns to offset costs and clear inventory, which rose 21% year over year to $1.7 billion; shares fell roughly 17% to 20% and are down more than 40% year to date.