Lululemon (LULU) Q1 2026 Earnings
How Did LULU Stock React to Q1 2026 Earnings?
S&P 500 over the same 30 days: +1.92%.
Did LULU Beat Earnings? Q1 2026 Results
Yes. Lululemon reported Q1 2026 earnings of $1.69 a share on Jun 4, 2026, beating the $1.67 consensus estimate by 1.0%. Revenue was $2.5B against a $2.4B estimate.
Lululemon posted a mixed but technically better-than-expected first quarter of fiscal 2026, beating Wall Street estimates on both the top and bottom lines even as the underlying results pointed to a company under real pressure. GAAP diluted EPS of $1.69 edged past the $1.67 consensus by roughly 1%, while revenue of $2.47 billion topped the $2.43 billion estimate by 1.53% and grew 4.3% year over year, yet the headline numbers masked a sharp deterioration in profitability: gross margin contracted 410 basis points to 54.2% and operating margin fell 730 basis points to 11.2%, driving a 37% decline in operating income and sending EPS well below the $2.60 reported in the year-ago quarter. The geographic picture was starkly divided, with Americas comparable sales dropping 5% while international revenue surged 22%, led by 30% growth in China Mainland. Leadership in transition, the company's interim co-CEOs updated full-year guidance to revenue of $11.00 billion to $11.15 billion, representing a decline of 1% to flat, with diluted EPS of $10.95 to $11.15, a sober outlook that has contributed to the stock trading near multi-year lows.
- International revenue growth of 22% (16% constant dollar), led by China Mainland at 30% growth
- Sequential improvement in full-price sales in North America
- Comparable sales increased 1% overall (decreased 2% on a constant dollar basis)
- Gross margin contraction of 410 basis points to 54.2%
- SG&A increased to 42.9% of net revenue from 39.8%
- Americas comparable sales declined 5% (6% constant dollar)
“We experienced a solid start to 2026 as our teams executed with speed, agility, and discipline. Our work to drive improvements in North America resulted in some positive signals in the quarter, including a sequential improvement in full-price sales. More recently, we have been navigating headwinds that have led us to adjust our outlook for the full year. We have assessed the business and are taking additional actions to reposition where needed and further strengthen our product engine. We remain confident in our path forward.”
Lululemon CEO, on the earnings call
What Was Lululemon's Outlook in Q1 2026?
For Q2 2026, the company expects net revenue of $2.450 billion to $2.475 billion (a decline of 3% to 2%) and diluted EPS of $1.76 to $1.81, assuming a tax rate of approximately 30%. For full-year fiscal 2026, the company now expects net revenue of $11.000 billion to $11.150 billion (a decline of 1% to flat) and diluted EPS of $10.95 to $11.15, assuming a tax rate of approximately 30%. Guidance excludes potential IEEPA tariff refunds and future share repurchases.
LULU YoY Financials
| Metric | Q1 2026 | Q1 2025 | Year over year |
|---|---|---|---|
| Revenue | $2.5B | $2.4B | +4.3% |
| Gross Profit | $1.3B | $1.4B | −3.2% |
| Operating Income | $276.9M | $438.6M | −36.9% |
| Net Income | $195.0M | $314.6M | −38.0% |
Figures from SEC filings and company reports. Not investment advice.