Lululemon Shares Rise 5.3%; Quarterly Revenue Falls 4.3%

Lululemon Athletica Inc. (LULU) finished Oct. 15 at $99.09, a $5 increase from the previous close and a 5.31% gain. The closing price was recorded at 4 p.m. ET (20:00 UTC). The company released its fiscal second-quarter results Sept. 3 for the period ending Aug. 2.

Revenue totaled $2.416 billion, compared with $2.525 billion a year earlier, a 4.3% decrease. Net income fell to $329.2 million from $370.9 million. Both measures were lower than in the corresponding quarter of fiscal 2025.

Comparable sales declined 9% across the business. In the Americas, comparable sales fell 12% and revenue dropped 8%, while international revenue rose 4%. Fiscal first-quarter revenue had grown 4% year over year.

Diluted earnings per share were $2.92, including a $0.86 benefit from tariff refunds and related interest, net of tax. After excluding the disclosed benefit, diluted earnings per share were $2.06, versus $3.10 in the year-earlier quarter. Operating margin was 18.8%, down 190 basis points year over year. Tariff refunds added 560 basis points to the quarter’s operating margin.

Lululemon now projects fiscal 2026 revenue of $10.35 billion to $10.50 billion, a 5% to 7% annual decline. Its June forecast called for $11 billion to $11.15 billion in revenue, or a decrease of 0% to 1%. The updated range shifts the annual outlook from a near-flat decline to a steeper contraction. For the third quarter, the company forecasts revenue of $2.29 billion to $2.32 billion, down 10% to 11% from a year earlier.

Interim co-CEO and Chief Financial Officer Meghan Frank said, “While we continue to navigate some challenging dynamics, we are taking a prudent approach with our revised full-year outlook.”

As of Aug. 2, Lululemon had $1.39 billion in cash and cash equivalents. It also had $593.7 million available through its revolving credit facility.