lululemon athletica inc. Announces Second Quarter Fiscal 2026 Results

This section is The content in this section is supplied by Business Wire for the purposes of distributing press releases on behalf of its clients. Postmedia has not reviewed the content. by Business Wire Article contentRevenue decreased 4% to $2.4 billion, or decreased 5% on a constant dollar basis

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Article contentDiluted EPS of $2.92(1)Article content

VANCOUVER, British Columbia — lululemon athletica inc. (NASDAQ:LULU) today announced financial results for the second quarter of fiscal 2026, which ended on August 2, 2026.

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Meghan Frank, Interim Co-CEO and Chief Financial Officer, stated: “While we continue to navigate some challenging dynamics, we are taking a prudent approach with our revised full-year outlook. Our teams remain focused on accelerating growth by strengthening our product offerings, increasing our marketing investments, and maintaining disciplined expense management. Looking ahead, we have confidence in the strength of the lululemon brand, the deep connection we have with our guests and ambassadors, and the significant opportunities we see to drive long-term growth.”

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André Maestrini, Interim Co-CEO, President, and Chief Commercial Officer, stated: “We remain confident in our ability to take the right steps to strengthen our performance and deliver sustainable growth over time. I would like to thank our teams around the world for their focused efforts and continued commitment to lululemon. We look forward to welcoming our incoming CEO, Heidi O’Neill, next week as we begin an exciting new chapter for the company.”

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For the second quarter of 2026, compared to the second quarter of 2025:

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• Net revenue decreased 4% to $2.4 billion, or decreased 5% on a constant dollar basis.
  • Americas net revenue decreased 8%.
  • International net revenue increased 4%, or 2% on a constant dollar basis.
• Comparable sales decreased 9%, or 10% on a constant dollar basis.
  • Americas comparable sales decreased 12%.
  • International comparable sales decreased 3%, or 6% on a constant dollar basis.
• Gross profit decreased 1% to $1.5 billion and gross margin increased 200 basis points to 60.5%.
  • This includes $134.5 million of tariff refunds(1) which increased gross margin by 560 basis points.
• Income from operations decreased 13% to $453.7 million and operating margin decreased 190 basis points to 18.8%.
  • The tariff refunds(1) of $134.5 million increased operating margin by 560 basis points.
• The effective income tax rate for the second quarter of 2026 was 29.6%, compared to 30.5% for the second quarter of 2025.
• Diluted earnings per share were $2.92 compared to $3.10 in the second quarter of 2025.
  • This includes $0.86 per share related to tariff refunds and associated interest(1), net of tax.
• The Company repurchased 2.7 million of its shares for a cost of $330.0 million.
• The Company opened nine net new company-operated stores during the second quarter, ending with 825 stores.

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(1)

During the second quarter of 2026, the Company received International Emergency Economic Powers Act (“IEEPA”) tariff refunds of $134.5 million plus associated interest of $4.1 million. These amounts were recognized as a reduction of cost of goods sold and an increase to other income, respectively, and increased diluted earnings per share by $0.86.

Article contentBalance Sheet HighlightsArticle content

The Company ended the second quarter of 2026 with $1.4 billion in cash and cash equivalents and it had $593.7 million of available capacity under its committed revolving credit facility.

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Inventories at the end of the second quarter of 2026 decreased by 1% to $1.7 billion compared to the end of the second quarter of 2025. On a unit basis, inventories decreased 7%.

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Article content2026 OutlookArticle content

For the third quarter of 2026, the Company expects net revenue to be in the range of $2.290 billion to $2.320 billion, representing a decline of 10% to 11%. Diluted earnings per share are expected to be in the range of $0.93 to $0.98 for the quarter. This assumes a tax rate of approximately 30%.

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For 2026, the Company now expects net revenue to be in the range of $10.350 billion to $10.500 billion, representing a decline of 5% to 7%. Diluted earnings per share are now expected to be in the range of $9.48 to $9.73 for the year. This assumes a tax rate of approximately 30%. The 2026 outlook includes $0.86 per share from tariff refunds and associated interest, net of tax recognized in the second quarter of 2026, but does not reflect any further potential tariff refunds.

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The outlook does not reflect any future repurchases of the Company’s shares.

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The guidance and outlook forward-looking statements made in this press release are based on management’s expectations as of the date of this press release and do not incorporate future unknown impacts, including tariffs and macroeconomic trends. The Company undertakes no duty to update or to continue to provide information with respect to any forward-looking statements or risk factors, whether as a result of new information or future events or circumstances or otherwise. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of risks and uncertainties, including those stated below.

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A conference call to discuss second quarter results is scheduled for today, September 3, 2026, at 4:30 p.m. Eastern time. Those interested in participating in the call are invited to dial 1-833-752-3550 or 1-647-846-8290, if calling internationally, approximately 10 minutes prior to the start of the call. A live webcast of the conference call will be available online at: https://corporate.lululemon.com/investors/news-and-events/events-and-presentations. A replay will be made available online approximately two hours following the live call for a period of 30 days.

Article contentAbout lululemon athletica inc.Article content

lululemon athletica inc. (NASDAQ:LULU) is a technical athletic apparel, footwear, and accessories company for yoga, running, training, and most other activities, creating transformational products and experiences that build meaningful connections, unlocking greater possibility and wellbeing for all. Setting the bar in innovation of fabrics and functional designs, lululemon works with yogis and athletes in local communities around the world for continuous research and product feedback. For more information, visit lululemon.com.