Companies /Consumer Cyclical

Lululemon Athletica Inc

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

Q2 2026 Earnings

Reported Sep 4, 2025, 4:10pm ET · SEC source
$3.10
Beat +8.74%
EPS · est. $2.85
$2.5B
Miss −0.59%
Revenue · est. $2.5B
−0.2%
Trailing market
LULU vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−7%0+7%+14%Sep 4Sep 5report 4:10pm ETearnings−0.5%−7.7%
−7%0+7%+14%Sep 4Sep 5earnings−0.5%−7.7%
LULU −7.7%S&P 500 −0.5%
−7%0+7%+14%Sep 4Sep 5report 4:10pm ETearnings−0.2%−7.7%
−7%0+7%+14%Sep 4Sep 5earnings−0.2%−7.7%
LULU −7.7%NASDAQ −0.2%
−8%0+8%+16%Sep 3Sep 12report 4:10pm ETearnings+1.3%−9.5%
−8%0+8%+16%Sep 3Sep 12earnings+1.3%−9.5%
LULU −9.5%S&P 500 +1.3%
−8%0+8%+16%Sep 3Sep 12report 4:10pm ETearnings+1.9%−9.5%
−8%0+8%+16%Sep 3Sep 12earnings+1.9%−9.5%
LULU −9.5%NASDAQ +1.9%
−18.58%
Day of report
+0.18%
Next session
−4.73%
One week
+3.20%
30 days

S&P 500 over the same 30 days: +3.38%.

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 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 <a href="https://247wallst.com/investing/2025/09/04/live-is-lululemon-lulu-set-to-rise-following-its-earnings-report/">weighing what comes next</a> 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

“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.”

Lululemon CEO, on the earnings call

Forward Guidance & Outlook

For Q3 2025, the company expects net revenue of $2.470 billion to $2.500 billion (3%-4% growth) and diluted EPS of $2.18 to $2.23, assuming a 30.5% tax rate. For full year 2025, the company revised guidance downward, now expecting net revenue of $10.850 billion to $11.000 billion (2%-4% growth, or 4%-6% excluding the 53rd week of fiscal 2024) and diluted EPS of $12.77 to $12.97, assuming a 30% tax rate. Guidance includes an estimated $240 million reduction in gross profit from higher U.S. tariffs and removal of the de minimis exemption, net of mitigation efforts. Guidance does not reflect potential future share repurchases.

LULU YoY Financials

Q2 2026 vs Q2 2025 · SEC filings Q2 2025 Q2 2026
$0$700.0M$1.4B$2.1B$2.4B$2.5BRevenue$1.4B$1.5BGross Profit$540.2M$523.8MOperating Income$392.9M$370.9MNet Income
$0$700.0M$1.4B$2.1BRevenueGross ProfitOperating IncomeNet Income

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