lululemon athletica (NASDAQ:LULU) Releases Earnings Results, Beats Expectations By $1.13 EPS

lululemon athletica (NASDAQ:LULU) released its quarterly earnings data on Thursday. The apparel retailer reported $2.92 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.79 by $1.13, FiscalAI reports. The business had revenue of $2.42 billion during the quarter, compared to analysts’ expectations of $2.46 billion. lululemon athletica had a net margin of 13.03% and a return on equity of 31.26%. The company’s revenue for the quarter was down 4.3% on a year-over-year basis. During the same period in the previous year, the company earned $3.10 EPS. lululemon athletica updated its FY 2026 guidance to 9.480-9.730 EPS and its Q3 2026 guidance to 0.930-0.980 EPS.

Here are the key takeaways from lululemon athletica’s conference call:

• Q2 revenue fell 4% to $2.4 billion, with comparable sales down 10%; North America declined 8% and China mainland grew just 4% reported, or declined 2% in constant currency.
• Management lowered full-year 2026 guidance to revenue of $10.35 billion–$10.5 billion, down 5%–7%, and diluted EPS of $9.48–$9.73 versus $13.26 in 2025. Q3 is expected to be particularly weak, with revenue down 10%–11% and operating margin falling to approximately 6.5%.
• Product demand remains inconsistent, including a roughly 20% decline in leggings sales and a 13% drop in accessories, while traffic and conversion are under pressure in both stores and digital channels. Management expects additional seasonal clearance, with markdowns rising 40 basis points for the full year.
• The company is responding by chasing stronger-performing products such as Groove, Define, Scuba, and newer away-from-body bottoms, increasing chase volume approximately 20%, investing more in brand marketing and community activations, and tightening expenses and store expansion plans.
• Lululemon ended Q2 with $1.4 billion in cash, repurchased approximately 2.7 million shares, and retained $713 million under its buyback authorization. Gross margin also benefited from a $134.5 million tariff refund, contributing $0.86 to quarterly EPS, although management is assuming no further refunds in its guidance.

lululemon athletica Price Performance

NASDAQ LULU opened at $121.77 on Friday. lululemon athletica has a 1 year low of $104.44 and a 1 year high of $225.98. The company has a market capitalization of $14.45 billion, a PE ratio of 9.83, a P/E/G ratio of 2.50 and a beta of 0.87. The company has a fifty day moving average of $118.76 and a two-hundred day moving average of $136.61.

Wall Street Analyst Weigh In

LULU has been the topic of a number of analyst reports. Evercore cut their price target on lululemon athletica from $175.00 to $130.00 in a research note on Wednesday, June 3rd. Bank of America lowered their price objective on lululemon athletica from $175.00 to $140.00 and set a “neutral” rating for the company in a research report on Friday, June 5th. Deutsche Bank Aktiengesellschaft dropped their price objective on lululemon athletica from $171.00 to $127.00 and set a “hold” rating on the stock in a report on Monday, June 8th. Freedom Capital raised lululemon athletica from a “strong sell” rating to a “hold” rating in a research report on Friday, June 5th. Finally, BTIG Research cut lululemon athletica from a “buy” rating to a “neutral” rating in a research note on Friday, June 5th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, twenty-five have assigned a Hold rating and five have issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Reduce” and an average price target of $148.38.

Insider Activity

In other news, Director Charles Bergh bought 4,275 shares of the business’s stock in a transaction dated Monday, June 15th. The shares were acquired at an average price of $117.05 per share, for a total transaction of $500,388.75. Following the completion of the transaction, the director owned 10,365 shares of the company’s stock, valued at approximately $1,213,223.25. This trade represents a 70.20% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.54% of the company’s stock.

Hedge Funds Weigh In On lululemon athletica

A number of hedge funds have recently modified their holdings of LULU. Uniplan Investment Counsel Inc. purchased a new position in lululemon athletica during the 4th quarter worth $26,000. DV Equities LLC acquired a new stake in shares of lululemon athletica during the fourth quarter worth about $31,000. GW&K Investment Management LLC grew its holdings in shares of lululemon athletica by 70.3% during the fourth quarter. GW&K Investment Management LLC now owns 189 shares of the apparel retailer’s stock worth $39,000 after buying an additional 78 shares during the last quarter. Quattro Advisors LLC purchased a new position in shares of lululemon athletica during the fourth quarter worth about $46,000. Finally, Golden State Wealth Management LLC increased its position in lululemon athletica by 43.6% in the 4th quarter. Golden State Wealth Management LLC now owns 280 shares of the apparel retailer’s stock valued at $58,000 after acquiring an additional 85 shares during the period. 85.20% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about lululemon athletica

Here are the key news stories impacting lululemon athletica this week:

• Positive Sentiment: Second-quarter diluted EPS was $2.92, above the $1.79 analyst consensus. However, the result benefited substantially from $134.5 million in tariff refunds and related interest, which added approximately $0.86 to EPS after tax. Second-Quarter Fiscal 2026 Results
• Positive Sentiment: International revenue increased 4%, and lululemon repurchased approximately 2.7 million shares for $330 million during the quarter, providing some support for per-share results. Lululemon Q2 Revenue Falls 4%
• Neutral Sentiment: Nike veteran Heidi O’Neill is scheduled to become CEO next week. Her appointment offers a potential catalyst, but investors are likely to remain cautious until she demonstrates progress on product, brand, and North American growth issues. Forecast Cut Underscores Challenge for Next CEO
• Negative Sentiment: Revenue declined 4% year over year to $2.416 billion, missing expectations, while comparable sales fell 9%—the company’s weakest comparable-sales performance since the Great Recession. Americas revenue dropped 8%, highlighting intensifying competition and softer consumer demand. Lululemon Stock Plunges on Earnings and Outlook
• Negative Sentiment: Lululemon cut its fiscal 2026 revenue forecast to $10.35 billion–$10.50 billion from $11.00 billion–$11.15 billion and reduced EPS guidance to $9.48–$9.73, well below the approximately $12.35 consensus. Third-quarter EPS guidance of $0.93–$0.98 also trails estimates. Lululemon Cuts Outlook Again
• Negative Sentiment: Analysts and commentators questioned whether lululemon’s product assortment—particularly its reliance on form-fitting leggings—still matches changing customer preferences. The resulting uncertainty over the brand’s ability to restore growth contributed to the sharp decline following the earnings release. Sales Drop Raises Turnaround Concerns

lululemon athletica Company Profile

lululemon athletica inc. is a design-focused athletic apparel company known for performance-oriented apparel, footwear and accessories. The company’s product portfolio centers on technical apparel for yoga, running, training and everyday active lifestyle use and includes tops, bottoms, outerwear, underwear, bags and a growing footwear assortment. lululemon emphasizes fabric science and product innovation, marketing garments that blend performance features with lifestyle styling.

Products are developed in-house and produced through a network of third-party manufacturers.