Lululemon (LULU) · Consumer Brands
Lululemon Q2 FY2026 earnings: summary, key numbers & outlook
Results filed 3 Sep 2026 · Quarter ended 2 Aug 2026
Press release ↗Investor relations ↗
Summaries and transcripts are machine-generated and can contain errors.
In brief
Revenue decreased 4% to $2.4 billion, or decreased 5% on a constant dollar basis, with comparable sales down 9% and diluted EPS of $2.92.
Lululemon's second-quarter revenue fell 4% to $2.4 billion, and comparable sales fell 9%. The Americas were weak, with revenue down 8% and comparable sales down 12%. International revenue rose 4%. Gross margin rose to 60.5%, helped by $134.5 million of tariff refunds. Operating income fell 13% to $453.7 million and diluted EPS was $2.92, down from $3.10. The company repurchased 2.7 million shares for $330.0 million.
Management now expects 2026 revenue of $10.350 billion to $10.500 billion, a decline of 5% to 7%, and EPS of $9.48 to $9.73. Third-quarter revenue is guided to fall 10% to 11%. The main tension is that sales are shrinking in the Americas while the company plans more marketing spending, and the full-year EPS outlook includes $0.86 per share of tariff refunds that may not recur. A new CEO, Heidi O'Neill, joins next week.
Key numbers
- Net revenue · GAAP
- $2.4 billion
- Net income · GAAP
- $329.2M
- Diluted EPS · GAAP
- $2.92
- Gross margin · GAAP
- 60.5%
- Income from operations · GAAP
- $453.7 million
- Operating margin · GAAP
- 18.8%
- Operating cash flow (first two quarters) · GAAP
- $589.3M
- IEEPA tariff refunds recognized · GAAP
- $134.5 million
decreased 4%, or decreased 5% on a constant dollar basis
compared with $370,905 in the second quarter of 2025
compared to $3.10 in the second quarter of 2025
increased 200 basis points
decreased 13%
decreased 190 basis points
compared with 209,722 in the first two quarters of 2025
increased gross margin by 560 basis points
| Segment or metric | Value | Change |
|---|---|---|
| Americas net revenue | decreased 8% | decreased 8% |
| International net revenue | increased 4% | increased 4%, or 2% on a constant dollar basis |
| Americas comparable sales | decreased 12% | decreased 12% |
| International comparable sales | decreased 3% | decreased 3%, or 6% on a constant dollar basis |
| Company-operated stores | 825 | nine net new stores in the quarter |
Where each number comes from
- Net revenue: “Net revenue decreased 4% to $2.4 billion, or decreased 5% on a constant dollar basis.”
- Net income: “Income tax expense | 138,128 | 162,646 | 229,157 | 298,485 Net income | $329,223 | $370,905 | $524,271 | $685,477”
- Diluted EPS: “Diluted earnings per share were $2.92 compared to $3.10 in the second quarter of 2025.”
- Gross margin: “Gross profit decreased 1% to $1.5 billion and gross margin increased 200 basis points to 60.5%.”
- Income from operations: “Income from operations decreased 13% to $453.7 million and operating margin decreased 190 basis points to 18.8%.”
- Operating margin: “Income from operations decreased 13% to $453.7 million and operating margin decreased 190 basis points to 18.8%.”
- Operating cash flow (first two quarters): “Net cash provided by operating activities | 589,278 | 209,722 Net cash used in investing activities | (281,802) | (319,960)”
- IEEPA tariff refunds recognized: “This includes $134.5 million of tariff refunds(1) which increased gross margin by 560 basis points.”
- Americas net revenue: “Americas net revenue decreased 8%. –International net revenue increased 4%, or 2% on a constant dollar basis.”
- International net revenue: “Americas net revenue decreased 8%. –International net revenue increased 4%, or 2% on a constant dollar basis.”
- Americas comparable sales: “Comparable sales decreased 9%, or 10% on a constant dollar basis. –Americas comparable sales decreased 12%.”
- International comparable sales: “International comparable sales decreased 3%, or 6% on a constant dollar basis.”
- Company-operated stores: “The Company opened nine net new company-operated stores during the second quarter, ending with 825 stores.”
Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.
| From the filing | Q2 FY2026 | vs year ago | vs last quarter |
|---|---|---|---|
| Revenue | $2.4B | −4.3% | −2.3% |
| Operating income | $453.7M | −13.4% | +63.8% |
| Net income | $329.2M | −11.2% | +68.8% |
| Diluted EPS | $2.92 | −5.8% | +72.8% |
| Free cash flow | $225.2M | +49.3% | +158.6% |
| Gross margin | 60.5% | +2.0 pts | +6.3 pts |
| Operating margin | 18.8% | −1.9 pts | +7.6 pts |
Calculated by code from XBRL, not by the model.
Guidance check
| Metric | Outlook given with Q1 FY2026 | Reported | Result |
|---|---|---|---|
| Revenue | $2.450 billion to $2.475 billion | $2.4B | below the range |
| EPS (GAAP) | $1.76 to $1.81 | $2.92 | above the range |
Compared with the company's own guidance, not analyst estimates, and only where the outlook and the reported figure are the same measure on the same basis. Ranges are worked out by code from the company's wording. How this works.
Outlook
| Metric | Period | Outlook |
|---|---|---|
| Net revenue | third quarter of 2026 | $2.290 billion to $2.320 billion |
| Diluted EPS | third quarter of 2026 | $0.93 to $0.98 |
| Tax rate | third quarter of 2026 | approximately 30% |
| Net revenue | 2026 | $10.350 billion to $10.500 billion |
| Diluted EPS | 2026 | $9.48 to $9.73 |
Key takeaways
Tariff refunds flattered margins and EPS
The $134.5 million of tariff refunds increased gross margin by 560 basis points and added $0.86 per share. Without them, gross margin and EPS would have been lower.
Americas weakness drove the sales decline
Americas net revenue decreased 8% and Americas comparable sales decreased 12%. International net revenue increased 4%.
Expenses grew while revenue shrank
SG&A rose to $1,006,332 thousand, or 41.7% of net revenue, from 37.7% a year earlier. Operating margin fell 190 basis points to 18.8%.
Full-year outlook was revised lower
The company now expects 2026 net revenue of $10.350 billion to $10.500 billion, a decline of 5% to 7%, and EPS of $9.48 to $9.73. Third-quarter revenue is guided to decline 10% to 11%.
Buybacks continued amid leadership transition
The company repurchased 2.7 million shares for $330.0 million. Incoming CEO Heidi O'Neill is due to start next week, according to the Interim Co-CEO.
Charts
Fourth quarter worked out from the annual figure.
Data
| Q3 FY24 | $2.4B |
| Q4 FY24 | $3.6B * |
| Q1 FY25 | $2.4B |
| Q2 FY25 | $2.5B |
| Q3 FY25 | $2.6B |
| Q4 FY25 | $3.6B * |
| Q1 FY26 | $2.5B |
| Q2 FY26 | $2.4B |
Data
| Q3 FY24 | $2.87 |
| Q1 FY25 | $2.60 |
| Q2 FY25 | $3.10 |
| Q3 FY25 | $2.59 |
| Q1 FY26 | $1.69 |
| Q2 FY26 | $2.92 |
Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.
Data
| Q3 FY24 | 20.5% |
| Q4 FY24 | 28.9% |
| Q1 FY25 | 18.5% |
| Q2 FY25 | 20.7% |
| Q3 FY25 | 17.0% |
| Q4 FY25 | 22.3% |
| Q1 FY26 | 11.2% |
| Q2 FY26 | 18.8% |
Data
| Q3 FY24 | $122.2M |
| Q4 FY24 | $1.2B |
| Q1 FY25 | -$271.2M |
| Q2 FY25 | $150.8M |
| Q3 FY25 | $82.4M |
| Q4 FY25 | $959.7M |
| Q1 FY26 | $87.1M |
| Q2 FY26 | $225.2M |
Operating cash flow minus capital expenditure, from cash flow statements.
Questions
What were Lululemon's second-quarter fiscal 2026 results?
Revenue decreased 4% to $2.4 billion and comparable sales decreased 9%. Diluted EPS was $2.92, down from $3.10 a year earlier.
How did tariff refunds affect the quarter?
Lululemon received $134.5 million of IEEPA tariff refunds, which increased gross margin by 560 basis points and added $0.86 to diluted EPS.
What is Lululemon's new full-year 2026 outlook?
It expects net revenue of $10.350 billion to $10.500 billion, down 5% to 7%, and diluted EPS of $9.48 to $9.73. The EPS range includes the $0.86 per share from tariff refunds and interest.
What does Lululemon expect for the third quarter?
It expects net revenue of $2.290 billion to $2.320 billion, a decline of 10% to 11%, and diluted EPS of $0.93 to $0.98. The guidance assumes a tax rate of approximately 30%.
Which regions are performing better or worse?
The Americas were weaker, with net revenue down 8% and comparable sales down 12%. International net revenue rose 4%, though international comparable sales fell 3%.
Documents
From Lululemon investor relations
SEC filing