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Lululemon Stock Plunges 20% After Cutting Its Full-Year Sales Forecast Again

The athletic-wear retailer beat second-quarter profit estimates, but a second guidance cut this fiscal year and a steep sales decline in the Americas rattled investors.

By THRYV Life Desk·Published September 9, 2026·Updated September 9, 2026·3 min read
Lululemon Stock Plunges 20% After Cutting Its Full-Year Sales Forecast Again
Fashion · Illustration commissioned for THRYV. Photography is replaced with original imagery as each story is produced.

The takeaway

Lululemon's stock fell sharply after the athletic-apparel retailer reported a 4% drop in second-quarter revenue, a 9% decline in comparable sales, and cut its full-year fiscal 2026 guidance to $10.35-$10.50 billion, down 5-7% from last year. Comparable sales fell 12% in the Americas despite a profit beat helped by tariff refunds.

Lululemon shares fell as much as 20% on Sept. 3 after the athletic-apparel retailer cut its full-year sales outlook for the second time this fiscal year, even as second-quarter profit topped Wall Street's estimates.

The numbers

  • Net revenue: $2.4 billion, down 4% year over year (down 5% in constant dollars)
  • Comparable sales: down 9% overall, down 10% in constant dollars
  • Americas comparable sales: down 12%
  • International comparable sales: down 3% (down 6% in constant dollars)
  • Diluted EPS: $2.92, which included $0.86 per share from tariff refunds
  • Gross margin: 60.5%, up 200 basis points from a year earlier

A weaker outlook

Lululemon now expects full-year fiscal 2026 net revenue of $10.35 billion to $10.50 billion, a decline of 5% to 7% from the prior year, with diluted earnings per share of $9.48 to $9.73. The company is currently being run by interim co-CEOs following a leadership transition.

While we continue to navigate some challenging dynamics, we are taking a prudent approach with our revised full-year outlook.
Meghan Frank, Lululemon interim co-CEO and CFO

Interim co-CEO Andre Maestrini said the company remains confident in its ability to "take the right steps to strengthen our performance and deliver sustainable growth over time," even as it works through weaker demand in its largest market.

What it means for shoppers

A steep pullback in North American demand hasn't yet translated into deep discounting from lululemon, but the guidance cut signals the company expects the slowdown to continue through the rest of the year.

Sources

This article is original writing by THRYV. We link to primary reporting and official documents rather than reproducing them.

  1. lululemon athletica inc. Announces Second Quarter Fiscal 2026 Results — Yahoo Finance

Why you can trust this article

Written and edited in-house by the THRYV Life Desk. We do not republish or reword agency copy, and we do not invent quotes, statistics, testimonials or ratings. Where figures move frequently, we point you to the primary release rather than printing a number that will be out of date. Advertising and affiliate partnerships have no influence on our reporting — see our editorial standards, fact-checking policy and affiliate disclosure. Spotted an error? Write to newsroom@thryv-news.com.

General information only. Not personalised financial, medical or legal advice.

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