Lululemon Q2 2026 Revenue Falls 4% to $2.42 Billion
Lululemon reported second-quarter 2026 net revenue of $2.42 billion, down 4% year over year, with diluted earnings per share of $2.92. Comparable sales fell 9%, or 10% on a constant-currency basis. Gross profit declined 1% to $1.5 billion, while gross margin expanded 200 basis points to 60.5%. The company lowered its full-year outlook, citing a tax rate of approximately 30%.
Lululemon released its second-quarter results on September 3, 2026. For the quarter ended in late 2026, the company reported net revenue of $2.42 billion, a decrease of 4% year over year, and diluted earnings per share of $2.92. Comparable store sales declined 9%, or 10% on a constant-currency basis. Gross profit fell 1% to $1.5 billion, while gross margin rose 200 basis points to 60.5%.
As of the end of the second quarter of 2026, the company held $1.4 billion in cash and cash equivalents and had $593.7 million available under its committed revolving credit facility. Inventory decreased 1% from the end of the second quarter of 2025 to $1.7 billion; on a unit basis, inventory was down 7%. The results include a tariff refund and related interest of $0.86 per share, net of tax, recognized in the second quarter of 2026, but do not reflect any further potential tariff refunds.
The company lowered its full-year outlook. The guidance is based on an approximate tax rate of 30%.