Lululemon (LULU) reported its Q2 2026 earnings, showing that the company is once again struggling to turn its business around:
- The retailer reported a 9% decline in comparable sales:
- Lululemon's new CEO, Heidi O'Neill, is set to officially take the reins of the company next week:
Shares of Lululemon plunged 15% on Thursday after the retailer reported another quarter of disappointing results and cut its outlook for the year:
The company reported a 4% decline in revenue and a 9% decrease in comparable sales for the second fiscal quarter:
Interim CEO Meghan Frank noted on a call with analysts that the company experienced "negative commentary" on social media that affected its performance in the second quarter:
The company also faced a "greater-than-expected" slowdown in some of its core categories, including leggings:
"While we are seeing good guest reaction to our activations and some of our newer styles, the overall response to our product launches remains inconsistent, and we've continued to see pressure on the brand in both of our largest markets," Frank said:
For the third fiscal quarter, Lululemon expects revenue to be between $2.29 billion and $2.32 billion, a decline of roughly 10% to 11% from the prior year:
For the full year, Lululemon expects net revenue between $10.35 billion and $10.5 billion, representing a 5% to 7% decline:
The company reported net income of $329.2 million, or $2.92 per share, for the quarter:
Frank stated that Lululemon management is focusing on introducing new styles and tightening inventory to return to sales growth:
"We know there is much more work to be done," Frank said:
