While Michael Burry's recent shorts have arguably taken the bulk of the attention due to being explicit bets against the artificial intelligence (AI) boom, his largest long position has also been controversial on account of its poor performance in 2026.
Shares of Lululemon Athletica fell about 18% in premarket trading on Friday after the sportswear maker cut its full-year forecast for a second time, underscoring the hurdles awaiting incoming CEO Heidi O'Neill.
lululemon athletica inc. (LULU) Q2 2026 Earnings Call Transcript
lululemon athletica NASDAQ: LULU reported second-quarter revenue and earnings that fell below its expectations, citing weaker traffic, inconsistent product launches and pressure on brand sentiment in North America and China Mainland. The company lowered its full-year outlook and said it is increasing marketing investment while tightening expenses and inventory management.
While the top- and bottom-line numbers for Lululemon (LULU) give a sense of how the business performed in the quarter ended July 2026, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
lululemon athletica inc. faces severe de-rating after weak Q2 results, with a 19% post-earnings selloff and single-digit valuation multiples. LULU's Q2 revealed a 4% revenue decline, -10% comparable sales, and a significant 8% drop in Americas sales, highlighting competitive and macro headwinds. EPS outperformance was driven by one-off tariff refunds; underlying margins and earnings are notably weaker than headline results suggest.
Lululemon (LULU) came out with quarterly earnings of $2.06 per share, beating the Zacks Consensus Estimate of $1.79 per share. This compares to earnings of $3.1 per share a year ago.
The stock is down 15% as analysts question the yoga-wear maker's fashion assortment.
Lululemon posted another quarter of disappointing earnings results and sales slowdown as the company struggles to turn its business around. The retailer said its comparable sales sank 9% during the second fiscal quarter.
The activewear retailer said it now expects annual sales to be $10.35 billion to $10.50 billion, down from its previous guidance of $11.00 billion to $11.15 billion.
Looking beyond Wall Street's top-and-bottom-line estimate forecasts for Lululemon (LULU), delve into some of its key metrics to gain a deeper insight into the company's potential performance for the quarter ended July 2026.
Lululemon (LULU) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.