Shoppers stroll by a Lululemon outlet in a Hong Kong shopping centre on June 21, 2026.
Cheng Xin | Getty Images
Shares of Lululemon fell 15% on Thursday after the company posted another disappointing quarter and lowered its annual forecast.
The retailer posted a 4% drop in revenue and a 9% decline in comparable sales for the second fiscal quarter, marking another weak period after it had trimmed its guidance in the prior quarter.
Interim CEO Meghan Frank told analysts that negative social‑media commentary hurt second‑quarter performance and that the company saw a sharper‑than‑expected slowdown in core categories such as leggings.
“While we are seeing positive guest response to our activations and several new styles, the overall reaction to our product launches remains uneven, and we continue to feel pressure on the brand in our two biggest markets,” Frank said.
For the upcoming third quarter, Lululemon forecasts revenue of $2.29 billion to $2.32 billion, down about 10%–11% year‑over‑year, and expects earnings of 93 cents to 98 cents per share.
For the full year, Lululemon projects net revenue of $10.35 billion to $10.5 billion, a 5%‑7% decline versus the prior year and below its earlier guidance of $11 billion‑$11.15 billion. Earnings are expected to range from $9.48 to $9.73 per share, down from the previous $10.95‑$11.15 per share outlook, a figure that incorporates a tariff‑refund boost.
Below is how Lululemon’s second‑quarter results stacked up against analyst expectations compiled by LSEG.
- Earnings per share: $2.92, though it was unclear whether this figure compared to the $1.79 estimate.
- Revenue: $2.42 billion, compared with the $2.46 billion forecast.
In the quarter, Lululemon posted net income of $329.2 million, or $2.92 per share, down from $370.9 million, or $3.10 per share, a year earlier.
The company noted that gross profit slipped 1% to $1.5 billion, even as gross margin rose 5.6% thanks to a $134.5 million tariff refund.
Frank said on the Thursday call that management is prioritising new‑style introductions and tighter inventory to revive sales growth.
“We know there is still plenty of work ahead,” Frank said. “Our leadership and staff remain committed to serving customers and executing initiatives that will spark a turnaround in the business.”
Lululemon continues to work on regaining strength and relevance with shoppers amid criticism from founder Chip Wilson, while incoming CEO Heidi O’Neill is set to assume leadership next week.