Shoppers walk past a Lululemon store in a shopping mall in Hong Kong, China, on June 21, 2026.
Chen Xin | Getty Images
shares of lululemon Shares plunged 20% in premarket trading Friday after the retailer reported more disappointing results and cut its outlook for the year.
The company announced Thursday that second-quarter sales were down 4% and like-for-like sales were down 9%. This was just the latest tough quarter for the apparel retailer, which lowered its outlook last quarter.
Interim CEO Meghan Frank said on a conference call with analysts Thursday that the company experienced “negative comments” on social media that impacted its second-quarter results. The company also experienced a “bigger-than-expected” slowdown in some of its core categories, such as leggings.
“While guest response to our activations and some new styles has been positive, overall response to product launches remains inconsistent and there continues to be pressure on the brand in both of our largest markets,” Frank said.
Lululemon said it expects third-quarter sales to be between $2.29 billion and $2.32 billion, down about 10% to 11% from a year ago. The company expects earnings for the period to be 93 cents to 98 cents per share.
Lululemon said it expects full-year net revenue to be between $10.35 billion and $10.5 billion, representing a 5% to 7% decline and revised down from its previous guidance of $11 billion to $11.15 billion. The company now expects earnings to range from $9.48 to $9.73 per share, compared to its previous guidance of $10.95 to $11.15 per share. The new outlook also includes a boost from tariff rebates, Lululemon added.
Here’s how Lululemon’s fiscal second quarter results compare to Wall Street expectations, based on a survey of analysts by LSEG.
Earnings per share: $2.06 adjusted vs. $1.79 expected Revenue: $2.42 billion vs. $2.46 billion expected
For the quarter, Lululemon reported net income of $329.2 million, or $2.92 per share. This compares to $370.9 million, or $3.10 per share, in the year-ago period.
The company announced that while gross profit decreased 1% to $1.5 billion, gross profit margin increased 5.6% due to $134.5 million in tariff refunds.
Frank said on a conference call Thursday that Lululemon’s management is focused on introducing new styles and reducing inventory to restore sales growth.
“We know there is still a lot of work to do,” Frank said. “Our leadership team and employees are focused on executing on initiatives to serve our customers and drive business transformation.”
Lululemon has struggled to regain strength and relevance among customers, even as it faces criticism from founder Chip Wilson. The company’s new CEO, Heidi O’Neill, will take over the reins of the retailer next week.
