Leading sportswear company Lululemon Athletica released its results for the second quarter of the fiscal year ending January 2027. Revenue and net income fell below the year-earlier levels, prompting a substantial downward revision to its full-year outlook.
Lululemon Athletica reported revenue of $2.416 billion, down 4.3% year on year, and net income of $329 million, down 11.2%, for the second quarter of the fiscal year ending January 2027 (May–July 2026). Diluted EPS was $2.92, including $0.86 related to tariff refunds. Comparable-store sales fell 9%, particularly in the Americas.
For the third quarter, the company forecast revenue of $2.29 billion–$2.32 billion, down 10%–11% year on year, and EPS of $0.93–$0.98. For the full year, it cut its revenue forecast from the previous range of $11.0 billion–$11.15 billion to $10.35 billion–$10.5 billion, and revised its EPS forecast from approximately $9.95 to $9.48–$9.73.
Company executives highlighted strengthening product lines, increasing marketing investment and tighter expense management in response to the difficult business environment. The board is also being refreshed: former CEO Calvin McDonald retired, while Chip Bergh joined the board in March. The company indicated that it plans to rebuild its strategy under the new structure.
Former Nike executive Heidi O’Neill was reported to be scheduled to become CEO on 8 March, with restoring product and brand strength and turning around the Americas business identified as key challenges. In after-hours trading following the earnings announcement, the share price at one point fell by approximately 20% from the regular-session close.