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lululemon's China sales fell 2% in Q2 due to PR issues and Tmall changes but shows signs of recovery.

Analyst Insights
09 Oct 2026
Seeking Alpha
View Source
Bullish
lululemon's China sales fell 2% in Q2 due to PR issues and Tmall changes but shows signs of recovery.

lululemon athletica inc. experienced a 2% year-over-year decline in comparable sales in China during Q2, mainly due to a public relations crisis and changes in the Tmall 618 shopping event. However, when excluding Tmall's impact, lululemon's other sales channels in China likely saw positive growth, indicating the brand's underlying strength. Competitor Alo quickly gained 27% of the online market share in China, but lululemon's expanding market presence and higher average selling prices support its pricing power. Analysts expect lululemon to rebound in Q3, with China same-store sales potentially growing in the high single digits to low double digits.

Lululemon Athletica's market cap stands at $10.27 billion as of Oct 09, 2026 21:11 WIB, reflecting its significant presence in the consumer cyclical sector. On Pluang, LULU shares trade at USD 93.21 with a modest 1-day gain of 0.57%, while trading volume reaches 4,392,324. Despite recent challenges in China, the stock sees more selling pressure with 80% of order activity as sell orders, indicating cautious investor sentiment at this time.

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