Q2 26 EPS
$3.10
BEAT +8.74%
Est. $2.85
Q2 26 Revenue
$2.53B
MISS 0.59%
Est. $2.54B
vs S&P Since Q2 26
-45.0%
TRAILING MARKET
LULU -28.1% vs S&P +17.0%
Market Reaction
Did LULU Beat Earnings? Q2 2026 Results
Lululemon delivered a mixed second quarter for fiscal 2025, beating on earnings but falling just short on the top line as a sharp divide between its domestic and international businesses defined the period. Diluted EPS of $3.10 cleared the $2.85 cons… Read more Lululemon delivered a mixed second quarter for fiscal 2025, beating on earnings but falling just short on the top line as a sharp divide between its domestic and international businesses defined the period. Diluted EPS of $3.10 cleared the $2.85 consensus estimate by 8.74%, while revenue of $2.53 billion grew 6.5% year over year but came in 0.59% below expectations. The story behind the numbers was stark: Americas net revenue inched up just 1% with comparable sales declining 4%, while international revenue surged 22%, led by China Mainland's 25% growth. Product execution shortfalls in lounge and social categories weighed heavily on the U.S. Business, and gross margin contracted 110 basis points to 58.5% as promotional activity and rising costs took hold. Tariffs added further pressure, with the company estimating a $240 million reduction in gross profit from higher U.S. Import duties, contributing to a downward revision in full-year EPS guidance to $12.77 to $12.97. Wall Street is now weighing what comes next for a brand that acknowledges its most meaningful recovery steps may not register until 2026.
Key Takeaways
- • Strong international growth, particularly in China Mainland (+25% revenue, +17% comparable sales)
- • Americas comparable sales declined 4%, driven by U.S. underperformance
- • Gross margin contracted 110 basis points to 58.5%
- • Operating margin declined 210 basis points to 20.7%
- • SGA expenses increased to 37.7% of net revenue from 36.8%
- • 14 net new company-operated stores added during the quarter, ending with 784 stores
LULU YoY Financials
Q2 2026 vs Q2 2025, source: SEC Filings
“While we continued to see positive momentum overall in our international regions in the second quarter, we are disappointed with our U.S. business results and aspects of our product execution. We have closely assessed the drivers of our underperformance and are continuing to take the necessary actions to strengthen our merchandise mix and accelerate our business. We feel confident in the opportunity ahead and plans we have in place to drive long-term growth.”
— Calvin McDonald, Q2 2026 Earnings Press Release
LULU Earnings Trends
LULU vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
LULU EPS Trend
Earnings per share: estimate vs actual
LULU Revenue Trend
Quarterly revenue: estimate vs actual
LULU Quarterly Results
6 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 27 | — | — | — | — | — |
| Q4 26 FY | — | $5.01 | — | $3.64B | +1.81% |
| FY Full Year | $13.03 | $13.26 | +1.75% | $11.10B | +0.59% |
| Q3 26 BEAT | $2.21 | $2.59 | +17.27% | $2.57B | +3.57% |
| Q2 26 BEAT | $2.85 | $3.10 | +8.74% | $2.53B | -0.59% |
| Q1 26 BEAT | $2.59 | $2.60 | +0.38% | $2.37B | +0.05% |
| Q4 25 FY | — | $6.14 | — | $3.61B | — |
| FY Full Year | — | $14.64 | — | $10.59B | — |