Lululemon reported lower second-quarter revenue and profit and cut its fiscal 2026 sales outlook, as comparable sales dropped 9% across its business for the period ended Aug. 2.
In its Sept. 3 earnings release, Lululemon said revenue for the period was $2.416 billion, down from $2.525 billion in the year-earlier quarter. Net income was $329.2 million, compared with $370.9 million a year earlier.
The release also reported a 9% comparable-sales decline across the business. In the Americas, comparable sales slipped 12% and revenue fell 8%; international revenue grew 4%.
Lululemon’s June guidance put fiscal 2026 revenue between $11 billion and $11.15 billion, with a projected decline of 0% to 1%. The company has since set its range at $10.35 billion to $10.50 billion, representing a 5% to 7% reduction from fiscal 2025.
Reported diluted earnings per share came to $2.92, with $0.86 after tax tied to tariff refunds and related interest. Excluding that benefit, the figure was $2.06, compared with $3.10 a year earlier. Operating margin stood at 18.8%, 190 basis points lower year over year, while tariff refunds contributed 560 basis points.
As of Aug. 2, the company had $1.39 billion in cash and cash equivalents and $593.7 million available through its revolving credit facility. Interim co-CEO and Chief Financial Officer Meghan Frank called the revised annual outlook “a prudent approach.”
Lululemon expects third-quarter revenue of $2.29 billion to $2.32 billion, 10% to 11% below the year-earlier quarter.
