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lululemon stock drops 18% post-earnings as core sales decline and outlook weakens

Company Fundamentals
07 Sep 2026
Seeking Alpha
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Bearish
lululemon stock drops 18% post-earnings as core sales decline and outlook weakens

lululemon athletica's stock fell about 18% after earnings showed weakening core business momentum, with Americas revenue down 8% and same-store sales dropping 12%. The company’s Q3 guidance predicts another 10–11% revenue decline. Although gross margin appeared strong, it was inflated by a one-time $134.5 million tariff refund, masking underlying profitability issues. The turnaround depends on new CEO Heidi O'Neill's leadership, product mix improvements, and more stable guidance, none of which are currently evident.

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