Companies /Consumer Cyclical

Lululemon Athletica Inc

NASDAQ: LULU Apparel Retail
$121.77
▲ $1.70 (+1.42%) today
Markets closed · 9:24am ET

Q2 2027 Earnings

Reported Sep 3, 2026, 4:07pm ET · SEC source
$2.92
Beat +63.11%
EPS · est. $1.79 GAAP

Includes $0.86 per share from IEEPA tariff refunds of $134.5 million and associated interest of $4.1 million, net of tax

$2.4B
Miss −1.82%
Revenue · est. $2.5B
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
0+8%+16%Sep 3Sep 4report 4:07pm ETearnings−0.1%−5.1%
0+8%+16%Sep 3Sep 4earnings−0.1%−5.1%
LULU −5.1%S&P 500 −0.1%
0+8%+16%Sep 3Sep 4report 4:07pm ETearnings+0.2%−5.1%
0+8%+16%Sep 3Sep 4earnings+0.2%−5.1%
LULU −5.1%NASDAQ +0.2%
0+8%+16%+24%Sep 2Sep 4report 4:07pm ETearnings−0.1%−2.4%
0+8%+16%+24%Sep 2Sep 4earnings−0.1%−2.4%
LULU −2.4%S&P 500 −0.1%
0+8%+16%+24%Sep 2Sep 4report 4:07pm ETearnings+0.2%−2.4%
0+8%+16%+24%Sep 2Sep 4earnings+0.2%−2.4%
LULU −2.4%NASDAQ +0.2%
+0.00%
Day of report

Did LULU Beat Earnings? Q2 2027 Results

Lululemon athletica posted a headline earnings beat in its fiscal second quarter of 2027, but the underlying story was considerably more complicated. The company reported GAAP diluted EPS of $2.92, beating the $1.79 consensus estimate by 63.11% and extending its streak of topping Wall Street's per-share expectations to five consecutive quarters; however, that figure includes $0.86 per share from a one-time IEEPA tariff refund of $134.50 million and associated interest of $4.10 million, net of tax. Revenue told a softer story, coming in at $2.42 billion, a 4.3% decline year-over-year and a 1.82% miss versus the $2.46 billion consensus, with comparable sales falling 9% globally and the Americas segment down 12%. The weakness has drawn cautious analyst attention, with consensus ratings reflecting concern about persistent North American softness. Looking ahead, management lowered its full-year 2026 revenue outlook to $10.35 billion to $10.50 billion, a decline of 5% to 7%, and guided third-quarter revenue to $2.29 billion to $2.32 billion, representing a further 10% to 11% contraction.

Key Takeaways
  • Americas net revenue decreased 8% with comparable sales declining 12%
  • International net revenue increased 4% (2% constant dollar) with comparable sales declining 3% (-6% constant dollar)
  • Gross margin expanded 200 basis points to 60.5%, including 560 basis points from $134.5 million IEEPA tariff refunds
  • SG&A expenses increased to 41.7% of net revenue from 37.7%
  • Comparable sales decreased 9% total (10% constant dollar)

“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

Forward Guidance & Outlook

For Q3 2026, the company expects net revenue of $2.290 billion to $2.320 billion, representing a decline of 10% to 11%, with diluted EPS of $0.93 to $0.98 (assuming ~30% tax rate). For full-year 2026, the company now expects net revenue of $10.350 billion to $10.500 billion, representing a decline of 5% to 7%, and diluted EPS of $9.48 to $9.73. The full-year outlook includes the $0.86 per share from tariff refunds recognized in Q2 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

Q2 2027 vs Q2 2026 · SEC filings Q2 2026 Q2 2027
$0$700.0M$1.4B$2.1B$2.5B$2.4BRevenue$1.5B$1.5BGross Profit$523.8M$453.7MOperating Income$370.9M$329.2MNet Income
$0$700.0M$1.4B$2.1BRevenueGross ProfitOperating IncomeNet Income

Figures from SEC filings and company reports. Not investment advice.