VANCOUVER, September 6 — lululemon athletica’s second-quarter numbers showed a decline, and the company’s own guidance suggests the trend may continue. The athletic apparel maker reported net revenue of $2.4 billion for the quarter ended August 2, 2026, a 4% decrease from the same period last year — or 5% on a constant dollar basis. Comparable sales decreased 9%, or 10% on a constant dollar basis.
A portion of the quarter’s earnings was affected by one-time tariff refunds. During the quarter, lululemon received $134.5 million in refunds under the International Emergency Economic Powers Act, plus $4.1 million in associated interest.
Those amounts were recognized as a reduction of cost of goods sold and an increase to other income, respectively, and together they increased diluted earnings per share by $0.86. Reported diluted EPS came in at $2.92. The company also revised its full-year outlook downward.
The company expects third-quarter net revenue in the range of $2.290 billion to $2.320 billion, representing a decline of 10% to 11%. For the full fiscal year 2026, lululemon projects net revenue of $10.350 billion to $10.500 billion, representing a 5% to 7% decrease.
Diluted EPS for the year is expected between $9.48 and $9.73, assuming a tax rate of approximately 30%. The 2026 outlook includes the $0.86 per share benefit from tariff refunds and associated interest recognized in the second quarter but does not reflect any further potential refunds or future share repurchases. Management’s guidance is based on expectations as of the press release date and does not incorporate future unknown impacts, including tariffs and macroeconomic trends.
Interim Co-CEO and CFO Meghan Frank cited “challenging dynamics” and a “prudent approach” to the revised outlook. The company ended the quarter with $1.4 billion in cash and cash equivalents and $593.7 million of available capacity under its committed revolving credit facility. Inventories decreased 1% to $1.7 billion compared to the end of the second quarter of 2025; on a unit basis, inventories decreased 7%.
Interim Co-CEO André Maestrini noted the company looks forward to welcoming incoming CEO Heidi O’Neill next week, framing it as “an exciting new chapter.” The next earnings call will be the first test of whether the new leadership can reverse the slide.
