Overview
- Lululemon reported on Thursday that Q2 revenue fell 4% and comparable sales dropped 9%, with North America down about 12%.
- The company cut full-year net revenue guidance to $10.35 billion–$10.5 billion, a 5%–7% decline from last year, and issued weak Q3 revenue and EPS guidance.
- Investors reacted sharply, sending the stock down roughly 15% after the results and the second guidance cut in months.
- Management said product launches have had inconsistent reception and pointed to stronger competition as reasons for the slowdown while gross margin was partially lifted by a one-time $134.5 million tariff refund.
- Heidi O'Neill will take over as CEO next week and the company plans to accelerate marketing, speed product cycles, improve stores and pursue sharper cost cuts as it seeks to restore relevance and growth.