Overview
- The company reported its Q2 results on Thursday showing revenue of about $2.4 billion and comparable sales down roughly 9 percent, with leggings sales falling about 20 percent.
- Lululemon cut full‑year fiscal 2026 revenue guidance to $10.35 billion–$10.5 billion and lowered EPS to $9.48–$9.73, marking the second guidance reduction in months.
- Management said gross margin was raised by a $134.5 million tariff refund, which added to reported profit but does not change the underlying sales weakness.
- Investors reacted sharply with the stock dropping about 15–20 percent as analysts cut targets and flagged deeper market share losses to rivals such as Alo, Vuori and Gymshark.
- Incoming CEO Heidi O’Neill will take over next week facing an urgent turnaround task to fix product execution, win back customers in North America and mainland China, and show clear signs of sales stabilization before investors regain confidence.