Lululemon Q2 FY2026: revenue down 4%, guide cut, EPS lifted by tariffs
Lululemon's second quarter looked better than it was: revenue fell 4% to $2.42 billion and comparable sales dropped 9%, while a $134.5 million tariff refund inflated both gross margin and EPS. Management also trimmed the full-year revenue outlook. Strip out that one-off and the profit trend is clearly deteriorating, which is why the read here is Bearish, even with a clean, debt-light balance sheet.
1 · Expected vs. Actual
Free preview belowDiluted EPS of $2.92 compares with $3.10 a year ago, and it includes $0.86 per share from tariff refunds and associated interest. Remove that and the quarter earned roughly $2.06 per share. Operating margin of 18.8% also carries 560 basis points of refund benefit, so the underlying margin is closer to 13% versus 20.7% a year earlier.
Revenue of $2.42 billion was down 4.0% from $2.53 billion a year ago, and down 5.0% on a constant dollar basis. Comparable sales fell 9.0%, with the Americas down 12.0% and international down 3.0%. The $2.46 billion guide given alongside the prior quarter's results was missed, so the top line landed below management's own plan.
For the third quarter, management guides revenue of $2.29 billion to $2.32 billion, a decline of 10% to 11%, and EPS of $0.93 to $0.98. For the full year, revenue is now guided to $10.35 billion to $10.50 billion with EPS of $9.48 to $9.73, and that EPS range still contains the $0.86 of tariff refunds. The Q3 revenue midpoint of $2.305 billion sits below the $2.36 billion consensus revenue estimate for the next quarter.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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