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# LULULEMON Cuts Full-Year Outlook as Comparable Sales Fall 9%
- URL: https://redfiled.com/lululemon-cuts-full-year-outlook-as-comparable-sales-fall-9/
- Published: 2026-09-04T15:05:32.000Z
- Updated: 2026-09-04T15:34:34.000Z
- Description: Q2 revenue slipped 4% to $2.4 billion and lululemon now sees full-year revenue declining 5% to 7%, with Q3 sales set to drop as much as 11%.
- Author: William Hayes
- Tags: LULU, Guidance

**lululemon athletica (LULU)** reported second-quarter fiscal 2026 results on **September 3, 2026**, showing **net revenue down 4% to $2.4 billion** and **comparable sales down 9%** — or **10% on a constant dollar basis**. The company also lowered its full-year outlook, now guiding to **net revenue of $10.35 billion to $10.50 billion**, a **decline of 5% to 7%**, with diluted earnings per share of **$9.48 to $9.73**.

The weakness was concentrated in the home market. **Americas net revenue fell 8%** and **Americas comparable sales fell 12%**, while **international revenue rose 4%** (2% in constant dollars) even as international comps slipped 3%. The quarter ended on **August 2, 2026**.

Reported profitability was flattered by a one-time item. Gross margin rose **200 basis points to 60.5%**, but that included **$134.5 million of IEEPA tariff refunds** that added **560 basis points**. Operating income fell **13% to $453.7 million** and operating margin declined **190 basis points to 18.8%**, again including the same 560-basis-point tariff benefit.

Diluted earnings per share came in at **$2.92**, down from **$3.10** a year earlier, and included **$0.86 per share** from the tariff refunds and **$4.1 million of associated interest**, net of tax. Selling, general and administrative expenses climbed to **41.7% of revenue** from 37.7%. Net income was **$329.2 million** versus $370.9 million.

Guidance for the current quarter is notably weaker than the reported quarter. For the third quarter, lululemon expects revenue of **$2.290 billion to $2.320 billion**, a **decline of 10% to 11%**, and diluted EPS of **$0.93 to $0.98**, assuming a roughly **30% tax rate**. The full-year outlook includes the $0.86 tariff benefit already booked but **assumes no further refunds**.

Interim Co-CEO and CFO Meghan Frank said the company is *taking a prudent approach with our revised full-year outlook*, pointing to plans to strengthen product, increase marketing investment and maintain *disciplined expense management*. Interim Co-CEO André Maestrini said the company looks forward to welcoming incoming CEO **Heidi O'Neill** next week.

The balance sheet ended the quarter with **$1.4 billion in cash** and **$593.7 million** of available revolver capacity. Inventories fell **1% to $1.7 billion**, and **7% on a unit basis**. The company repurchased **2.7 million shares for $330.0 million** and opened nine net new stores, ending with **825** company-operated locations.

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This is a factual summary of a public filing or press release, not investment advice. Verify all figures against the source before acting on them.