lululemon Reports Q2 Fiscal 2026 Results and Updates Full-Year Outlook

Executive Summary

On September 3, 2026, lululemon athletica inc. filed a Form 8-K announcing financial results for the second quarter of fiscal 2026 ended August 2, 2026, and updating its financial guidance for the remainder of the fiscal year.

Second Quarter Fiscal 2026 Financial Highlights

• Net Revenue: $2.416 billion, down 4% compared to $2.525 billion in Q2 2025 (down 5% on a constant dollar basis).
  • Americas: Net revenue declined 8%.
  • International: Net revenue grew 4% (2% constant dollar).
• Comparable Sales: Decreased 9% (down 10% on a constant dollar basis).
  • Americas comp sales fell 12%.
  • International comp sales fell 3% (down 6% constant dollar).
• Gross Margin: 60.5%, up 200 bps YoY, benefiting by 560 bps from $134.5 million of IEEPA tariff refunds.
• Operating Income: $453.7 million (18.8% operating margin), down 13% YoY.
• Diluted EPS: $2.92 compared to $3.10 in Q2 2025 (includes an $0.86 per share net benefit from tariff refunds and related interest).
• Capital Allocation: Repurchased 2.7 million shares for $330.0 million. Ended the quarter with $1.4 billion in cash and cash equivalents.
• Store Fleet: Opened 9 net new company-operated stores during the quarter, bringing the total count to 825.

Fiscal 2026 Outlook

• Third Quarter 2026:
  • Expected Net Revenue: $2.290 billion to $2.320 billion (decline of 10% to 11%).
  • Expected Diluted EPS: $0.93 to $0.98 (assuming ~30% tax rate).
• Full Year 2026:
  • Expected Net Revenue: $10.350 billion to $10.500 billion (decline of 5% to 7%).
  • Expected Diluted EPS: $9.48 to $9.73 (incorporates the $0.86 Q2 tariff refund impact).

Corporate Leadership Note

Interim Co-CEOs Meghan Frank and André Maestrini noted disciplined expense management and confirmed incoming CEO Heidi O'Neill will take the helm starting next week.