Lululemon Athletica shares fell 17.3% in extended trading after the company reported second-quarter fiscal 2026 results that missed revenue estimates and issued sharply lower guidance, despite adjusted earnings per share beating analyst forecasts.
The athletic apparel retailer posted adjusted EPS of $2.92, exceeding the $1.82 consensus estimate, but the figure included a $0.86 per share benefit from tariff refunds and related interest income. Excluding this one-time effect, underlying EPS would have been approximately $2.06, still above the consensus but weaker than the headline figure suggested.
Revenue totaled $2.4 billion, missing the $2.46 billion estimate and declining about 4% year-over-year. Comparable sales dropped 9%, reflecting persistent weakness in North America and a more promotional competitive environment in the athletic apparel segment. Major U.S. indexes traded largely unchanged during the session.
Management revised full-year fiscal 2026 revenue guidance to a decline of 5% to 7%, a significant downgrade from prior expectations of flat to down 1%. Full-year EPS guidance was cut to a range of $9.48 to $9.73, down from the previous $10.95 to $11.15. Third-quarter projections also fell short of Wall Street expectations.
The stock, which closed at $121.77 on September 3, 2026, approached its 52-week low of $104.44 after the after-hours decline. The shares have fallen more than 40% year-to-date. Analysts at Goldman Sachs reduced their price target to $111, while Jefferies and Evercore ISI maintained hold-equivalent ratings with targets of $115 each.
Heidi O'Neill, incoming CEO, is set to assume office on September 8, 2026, amid the company’s strategic reassessment.
