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

Company Fundamentals
07 Sep 2026
Seeking Alpha
View Source
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.

More News (LULU)

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...

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lululemon stock drops 17% after weak Q2 results and lowered guidance sparks investor lawsuit

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

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2 days ago
Lululemon sales fall 12%, margins shrink; stock seen undervalued with 15% upside potential

Lululemon sales fall 12%, margins shrink; stock seen undervalued with 15% upside potential

Lululemon Athletica reported a 12% drop in comparable North American sales and a decline in operating margin from 21% to 12%. The company faces challenges as core product sales decline and excess store costs weigh on profitability. New CEO Heidi O'Ne...

Analyst Insights
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2 days ago
Lululemon faces securities fraud probe after major stock drops linked to growth concerns.

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BFA Law is investigating Lululemon for potential securities fraud following significant stock price declines tied to concerns over the company's growth and business health. Key stock drops occurred after announcements of a new CEO appointment, declin...

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