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lululemon Q2 revenue drops 3.2%, leggings sales fall 20%, guidance cut, shares downgraded to hold

Company Fundamentals
14 Sep 2026
Seeking Alpha
View Source
Bearish
lululemon Q2 revenue drops 3.2%, leggings sales fall 20%, guidance cut, shares downgraded to hold

lululemon reported weak Q2 results with revenue down 3.2% year-over-year and core product sales, especially leggings, declining by 20%. The company's operational performance was temporarily supported by one-time tariff refunds, but underlying margins and comparable sales showed significant deterioration, particularly in the Americas. The company sharply cut its guidance, expecting Q3 earnings per share to fall below $1, raising concerns about the sustainability of its premium brand positioning and competitive advantage. As a result, the analyst downgraded lululemon to 'hold' due to ongoing operational challenges, while remaining watchful of the company's potential turnaround, strong cash flow, and balance sheet flexibility.

Lululemon Athletica Inc trades at USD 100.18 on Pluang as of Sep 15, 2026 10:41 WIB, up 1.22% in the last day. The stock's market cap stands at $10.96 billion, showing resilience despite recent earnings concerns. Its 52-week low is USD 96.88, indicating current prices are near the lower range for the year.

More News (LULU)

Retailers cut product lines to boost profits and manage inventory amid shifting consumer spending.

Retailers cut product lines to boost profits and manage inventory amid shifting consumer spending.

Major retailers like Dollar General, BJ's Wholesale Club, Lululemon, and Under Armour are reducing their product assortments to streamline inventory and improve profitability amid consumer spending cuts. These cuts help avoid excess markdowns and sta...

Market News
Bearish
1 day ago
lululemon's China sales fell 2% in Q2 due to PR issues and Tmall changes but shows signs of recovery.

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 sa...

Analyst Insights
Bullish
1 day ago
Lululemon revamps leadership with new roles but key positions remain open, says Jefferies.

Lululemon revamps leadership with new roles but key positions remain open, says Jefferies.

Lululemon Athletica has restructured its leadership by appointing Maggie Gauger as president and chief product officer and Joseph Godsey as chief operating officer, effective October 26. This move aims to improve product innovation and operational di...

Market News
Neutral
2 days ago
Investigation launched after lululemon's stock drops 17% on weak earnings and lowered guidance

Investigation launched after lululemon's stock drops 17% on weak earnings and lowered guidance

lululemon reported disappointing Q2 2026 results with lower-than-expected revenue and sharply reduced full-year guidance, blaming negative media, weak new product launches, and lower store traffic. Following this, the stock price fell 17.38%, prompti...

Market News
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2 days ago
Lululemon hires Athleta CEO Maggie Gauger as new chief product officer amid leadership reshuffle

Lululemon hires Athleta CEO Maggie Gauger as new chief product officer amid leadership reshuffle

Lululemon appointed Maggie Gauger, former Athleta CEO, as its new president and chief product officer in a newly created role, signaling a strategic focus on product innovation. This leadership change follows Heidi O'Neill's recent promotion to CEO a...

Market News
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