Lululemon cuts quarterly, annual forecast ahead of new CEO arrival

lululemon athletica

03/09/2026 21:18

Overview
US athletic apparel retailer's fiscal Q2 revenue fell 4%, missing analyst expectations
Comparable sales declined 9% in the quarter
Incoming CEO Heidi O'Neill will join the company next week
Shares of the company were down about 14% in extended trading

Outlook
Lululemon expects Q3 revenue of $2.290 bln to $2.320 bln, down 10% to 11%
Company sees Q3 diluted EPS of $0.93 to $0.98
Lululemon now expects 2026 revenue of $10.350 bln to $10.500 bln, down 5% to 7%
Company expects 2026 diluted EPS of $9.48 to $9.73, including $0.86 from tariff refunds

Result Drivers
AMERICAS WEAKNESS - Co reported an 8% decline in Americas net revenue and a 12% drop in Americas comparable sales
TARIFF REFUNDS - $134.5 mln in tariff refunds increased gross margin and contributed $0.86 per share to diluted EPS
INTERNATIONAL GROWTH - Co said international net revenue increased 4%, partially offsetting declines in the Americas

Company press release: ID:nBw7yDS5Ja

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$2.42 bln
$2.46 bln (24 Analysts)
Q2 EPS
 
$2.92
 
Q2 Comparable Sales Growth
 
-9%
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 29 "hold" and 4 "sell" or "strong sell"
The average consensus recommendation for the apparel & accessories peer group is "buy"
Wall Street's median 12-month price target for lululemon athletica inc. is $120.00, about 0.1% below its September 2 closing price of $120.07
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)