Lululemon (LULU) Q2 2026 Earnings
Includes $0.86 per share related to IEEPA tariff refunds of $134.5 million and associated interest of $4.1 million, net of tax
How Did LULU Stock React to Q2 2026 Earnings?
S&P 500 over the same 30 days: +0.91%.
Did LULU Beat Earnings? Q2 2026 Results
Yes. Lululemon reported Q2 2026 earnings of $2.92 a share on Sep 3, 2026, beating the $1.79 consensus estimate by 63.3%. Revenue was $2.4B against a $2.5B estimate.
Lululemon delivered a jarring mix of headline beat and operational strain in its second quarter of fiscal 2026, as a one-time windfall obscured deepening demand trouble beneath the surface. GAAP diluted EPS of $2.92 cleared the $1.79 consensus estimate by 63.34%, but that figure includes $0.86 per share tied to $134.50 million in IEEPA tariff refunds and $4.10 million in associated interest, net of tax; strip away the context and the print looks far less reassuring. Revenue of $2.42 billion missed the $2.46 billion consensus by 1.77% and fell 4.3% year over year, while comparable sales dropped 9%, with the Americas segment particularly weak at a 12% comparable-sales decline. Gross margin expanded 200 basis points to 60.5%, but the tariff refunds provided 560 basis points of that lift, pointing to meaningful underlying compression. With the stock down sharply in 2026 and commentators describing the brand as a turnaround situation, management lowered full-year revenue guidance to $10.35 billion to $10.50 billion and set Q3 revenue guidance at $2.29 billion to $2.32 billion, signaling further pressure ahead as incoming CEO Heidi O'Neill prepares to take the helm.
- Americas comparable sales declined 12%, driving overall revenue weakness
- International revenue grew 4% (2% constant dollar), partially offsetting Americas decline
- IEEPA tariff refunds of $134.5 million plus $4.1 million associated interest boosted gross margin by 560 basis points
- Gross margin expanded 200 basis points to 60.5%, entirely driven by tariff refund benefit
- SG&A deleverage to 41.7% of revenue from 37.7% due to lower sales and increased marketing spend
- Company-operated store count grew to 825 with nine net new openings in the quarter
“While we continue to navigate some challenging dynamics, we are taking a prudent approach with our revised full-year outlook. Our teams remain focused on accelerating growth by strengthening our product offerings, increasing our marketing investments, and maintaining disciplined expense management. Looking ahead, we have confidence in the strength of the lululemon brand, the deep connection we have with our guests and ambassadors, and the significant opportunities we see to drive long-term growth.”
Lululemon CEO, on the earnings call
What Is Lululemon's Outlook?
For Q3 2026, the company expects net revenue of $2.290 billion to $2.320 billion (a 10% to 11% decline) and diluted EPS of $0.93 to $0.98, assuming a ~30% tax rate. For full-year fiscal 2026, net revenue is now expected at $10.350 billion to $10.500 billion (a 5% to 7% decline), with diluted EPS of $9.48 to $9.73. The full-year outlook includes $0.86 per share from Q2 tariff refunds but does not reflect any further potential tariff refunds or future share repurchases. Guidance does not incorporate future unknown impacts including tariffs and macroeconomic trends.
LULU YoY Financials
| Metric | Q2 2026 | Q2 2025 | Year over year |
|---|---|---|---|
| Revenue | $2.4B | $2.5B | −4.3% |
| Gross Profit | $1.5B | $1.5B | −1.0% |
| Operating Income | $453.7M | $523.8M | −13.4% |
| Net Income | $329.2M | $370.9M | −11.2% |
When Does Lululemon Report Next?
Figures from SEC filings and company reports. Not investment advice.