Lululemon Athletica Inc. · LULU · FY2026 Q2 · Calendar Q3 2026

Lululemon lowers FY2026 outlook as North America weakens

The quarter weakens the case for near-term earnings growth: revenue declined and FY2026 guidance was lowered, while management's product, replenishment, marketing, and store actions are intended to restore full-price demand. Evidence for a recovery includes strength in away-from-body styles, planned product launches, and international expansion; evidence against it includes North American weakness, softer traffic and conversion, and continued margin and brand-sentiment risks.

Reported After market closeNASDAQConsumer Cyclical $11.14B market cap
100quality score

Earnings scorecard

Reported versus consensus
Reported EPS $2.92 Consensus $1.79
EPS surprise +63.1% Reported versus consensus
Reported revenue $2.42B Consensus $2.46B
Revenue surprise -1.7% Reported versus consensus

Market reaction

event-close to next-session close
Stock move -17.4% Event window
SPY move -0.4% Same window
Abnormal move -17.0% Stock minus SPY
Volume 8.7× Versus trailing sessions
Subsequent drift -2.5% Up to 20 sessions
LULUSPY benchmark

Ask FN2 about LULU FY2026 Q2

Transcript, numbers and history already loaded
Why did LULU fall 17.4% after beating EPS estimates in FY2026 Q2?What changed in LULU's guidance and outlook in FY2026 Q2?Give me the bull and bear case for LULU after FY2026 Q2 earnings.

Free account. Your question opens in FN2 with this report's transcript and numbers attached.

Transcript intelligence

What changed

Compared with the prior quarter, management reported a deeper revenue decline and again lowered FY2026 guidance. The response remains focused on SKU reduction, faster chase, marketing, store optimization, and product innovation; tariff refunds improved gross margin in the latest quarter, but ongoing pressure is expected.

Guidance delta

FY2026 guidance was lowered. Management also expects continued overall margin pressure despite gross-margin help from tariff refunds.

Key takeaways

  • Q2 revenue declined 4% year over year to $2.4 billion, with North America down 8% and modest growth in China Mainland.
  • Management is responding with SKU reductions, faster chase capability, store optimization, increased marketing, and product launches.
  • Tariff refunds supported gross margin this quarter, but softer traffic, conversion pressure, and brand-sentiment issues remain material risks.

Management priorities

  • Reduce SKU count by about 15% and continue store-layout redesigns.
  • Increase chase volume and improve replenishment of high-demand styles.
  • Invest in mid-funnel creator content, community events, and international partnerships.
  • Open about 35 net new company-operated stores in 2026 while trimming capital spending.

Follow LULU with an agent that reads every filing, transcript, and price print. Free to start.

Try FN2 free

Earnings History

Estimate Beat Miss Match
LULU EPS earnings history estimate and actual scatter chart 10 reported fiscal quarters and 2 future estimate-only quarters. Q1 '25 estimate $2.38 Q1 '25 actual $2.54, beat Q2 '25 estimate $2.93 Q2 '25 actual $3.15, beat Q1 '26 estimate $2.58 Q1 '26 actual $2.60, beat Q2 '26 estimate $2.91 Q2 '26 actual $3.10, beat Q3 '26 estimate $2.22 Q3 '26 actual $2.59, beat Q4 '26 estimate $4.76 Q4 '26 actual $5.01, beat Q1 '27 estimate $1.67 Q1 '27 actual $1.69, beat Q2 '27 estimate $1.79 Q2 '27 actual $2.92, beat Q3 '27 estimate $2.40 Q4 '27 estimate $4.97
Show 2 more >

Analyst Consensus ?

ConsensusHold68 ratings
Bullish2638.2%
Neutral3551.5%
Bearish710.3%

1 unmapped firm rating excluded from the percentages.

Analyst 52W Price Targets

$98.06Current
$70Low
$312.32Average
$542High

Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Sep 20, 2026. Not an FN2 forecast.

Firm-level rating actions

FMP grade actions identify the grading firm, not a named analyst.

FirmRatingPrior ratingActionDate
Argus Research Hold HoldMaintainSep 14, 2026
Citigroup Neutral NeutralMaintainSep 9, 2026
Wells Fargo Equal Weight Equal WeightMaintainSep 4, 2026
UBS Neutral NeutralMaintainSep 4, 2026
Truist Securities Sell SellMaintainSep 4, 2026
Show 64 more rating actions

Named analyst price targets

Upside is calculated against the persisted current price $98.06. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
BMO CapitalAnalyst unavailable$70$103.19 -28.6%Sep 8, 2026
BernsteinAneesha Sherman$115$121.77 +17.3%Sep 4, 2026
Robert W. BairdAnalyst unavailable$115$121.77 +17.3%Sep 4, 2026
Stifel NicolausAnalyst unavailable$100$121.77 +2.0%Sep 4, 2026
Piper SandlerAnalyst unavailable$80$121.77 -18.4%Sep 4, 2026
See 143 more

Track every rating change on LULU the moment it posts. Free to start.

Start free

Company context

Snapshot as of publication

Lululemon Athletica Inc., alongside its subsidiaries, specializes in the design, global distribution, and retail of athletic apparel and accessories for both women and men. Its business operations are structured into two main divisions: company-owned retail establishments and direct-to-consumer sales. The firm's offerings encompass a range of clothing such as pants, shorts, tops, and jackets, all crafted for promoting a healthy lifestyle and facilitating athletic endeavors. These activities span yoga, running, training, and other physically demanding pursuits. Beyond apparel, Lululemon also supplies fitness-related accessories and a selection of footwear. Customers can acquire Lululemon products through numerous channels. These include a global network of corporate-managed stores, outlet locations, and seasonal warehouse sales.…

Historical context

All LULU earnings
-8.6%FY2027 Q1 · Calendar Q2 2026

Consumer Cyclical peers this season

Latest reports in the same sector
CompanyQuarterEPS surpriseMarket moveHeadline
LEN-B Lennar Corporation FY2026 Q3 · Calendar Q3 2026 — — Lennar: Efficiency Gains Offset Housing-Market Pressures
LEN Lennar Corporation FY2026 Q3 · Calendar Q3 2026 — -4.1% Lennar Holds Volume Guidance as Margins Improve Despite Housing Headwinds
TCOM Trip.com Group Limited FY2026 Q2 · Calendar Q3 2026 +22.3% +3.0% Trip.com pairs international growth with heavier AI investment
CASY Casey's General Stores, Inc. FY2027 Q1 · Calendar Q3 2026 +8.7% -14.2% Casey's Q1: Prepared Food Drives Growth as Fuel Margins Stay Volatile
DECK Deckers Outdoor Corporation FY2027 Q1 · Calendar Q3 2026 +6.8% -0.2% Deckers Crosses $1 Billion Quarterly Revenue as HOKA and UGG DTC Drive Margin Gains
TSCO Tractor Supply Company FY2026 Q2 · Calendar Q3 2026 -1.0% +3.3% TSCO Q2: Comp Sales Turn Negative as Pet Ecosystem Expands

Latest beats and misses

Who reports next

Beat on EPS

Missed on EPS

Get the LULU recap when the next report posts

One email per quarter with the scorecard, the market reaction and what changed on the call. No account needed.

Sources

  1. Earnings call transcript and parsed analysis · 2026-09-04T13:21:42.190399+00:00
  2. FN2 earnings calendar · 2026-09-20T01:23:12.707946+00:00
  3. Polygon adjusted daily market bars · 2026-09-20T23:40:47.084885+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-09-20T23:40:47.082233+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated . For educational purposes only; not investment advice.