AI Generated Image
Lululemon (LULU) Q2 2026 earnings
CNBC • • business
Key Points:
- Lululemon's shares dropped 15% following a 4% revenue decline and a 9% decrease in comparable sales for the second fiscal quarter, marking another disappointing quarter for the retailer.
- Interim CEO Meghan Frank attributed the weak performance to negative social media commentary and a larger-than-expected slowdown in key product categories like leggings.
- The company lowered its full-year revenue guidance to $10.35 billion–$10.5 billion, down 5% to 7% from the previous outlook, and cut earnings per share estimates to $9.48–$9.73 from $10.95–$11.15.
- For the third quarter, Lululemon projects revenue between $2.29 billion and $2.32 billion, a 10% to 11% decline year-over-year, with earnings per share expected between 93 and 98 cents.
- Management plans to focus on new product styles and inventory control to drive a turnaround, acknowledging more work is needed to improve sales momentum.
