Lululemon athletica inc. reported second-quarter fiscal 2026 results on September 3, 2026, with net revenue falling 4% to $2.4 billion, missing the $2.46 billion analysts expected, and comparable sales dropping 10% on a constant dollar basis. Management cut full-year revenue guidance to a decline of 5% to 7% from a prior forecast of flat to down 1%, and lowered full-year earnings per share guidance to $9.48 to $9.73 from $10.95 to $11.15, compared with $13.26 earned in fiscal 2025, sending shares down about 18% in extended trading. Analysts responded with a wave of target cuts: JPMorgan's Matthew Boss cut his target to $95 from $154, Morgan Stanley's Alex Straton lowered hers to $83, Wells Fargo went to $95 from $105, Truist's Joseph Civello cut to $82, and Citi reduced its target to $117 from $130, while BMO Capital began coverage with an Underperform rating and a $70 price target. North America revenue fell 8%, leggings sales dropped approximately 20%, and China revenue grew 4% on a reported basis but fell 2% in constant currency, while Lululemon's athleisure market share fell 10 percentage points to 43.9% in August as Alo and Vuori gained 5.9 and 2.2 percentage points respectively. Incoming CEO Heidi O'Neill was set to start the following week, and the company ended the quarter with $1.4 billion in cash and no outstanding borrowings.
Citigroup Inc.
JPMorgan Chase & CoLululemon Athletica Inc.Athleisure market share fell 10 points to 43.9% as rivals Alo and Vuori gained share.
