Lululemon posted weak results for its second quarter of fiscal 2026, with revenue decreasing by 4 per cent to $2.4bn, with the Americas net revenue going down by 8 per cent.
The fashion brand’s same-store sales decreased by 9 per cent, with the Americas comparable sales reduced by 12 per cent.
The company’s gross profit decreased by 1 per cent to $1.5bn, and the gross margin went up by 200 basis points to 60.5 per cent. The gross profit includes $134.5m of tariff refunds, which boosted gross margin by 560 basis points.
Lululemon’s income from operations decreased by 13 per cent to $453.7m, and the operating margin went down by 190 basis points to 18.8 per cent.
The company’s diluted earnings per share (EPS) went down to $2.92 compared to $3.10 in the second quarter of 2025.
During the second quarter, Lululemon opened nine stores and ended the period with 825 stores.
Moving forward, the company forecasted a low outlook and expects a net revenue decline of 10 per cent to 11 per cent to $2.29bn to $2.32bn.
Lululemon projected full-year revenue to decline by between 5 per cent to 7 per cent, in the range of $10.4bn to $10.5bn.
Meghan Frank, interim co-CEO and chief financial officer, said: “While we continue to navigate some challenging dynamics, we are taking a prudent approach with our revised full-year outlook.
“Our teams remain focused on accelerating growth by strengthening our product offerings, increasing our marketing investments, and maintaining disciplined expense management.
“Looking ahead, we have confidence in the strength of the Lululemon brand, the deep connection we have with our guests and ambassadors, and the significant opportunities we see to drive long-term growth.”
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