lululemon athletica (LULU) Earnings Date & Reports

Key Takeaways

• Lululemon is scheduled to report its second quarter of fiscal 2026 results on Thursday, September 3, 2026, after the market close.
• Management has guided second-quarter revenue to $2.45 billion to $2.475 billion, a decline of roughly 2% to 3% versus the prior-year quarter.
• The company expects diluted earnings per share (EPS) of $1.76 to $1.81, well below the $3.10 reported in the same period a year ago.
• Consensus estimates point to EPS near $1.83 on revenue of about $2.46 billion, keeping the bar close to the top end of guidance.
• Investors will focus on North America demand, gross margin pressure from tariffs and markdowns, and updated full-year guidance ahead of a CEO transition.

Earnings Context and Why It Matters

Lululemon Athletica enters this report under intense scrutiny. The stock has fallen sharply in 2026, and the company cut its full-year fiscal 2026 outlook when it last reported in June, citing softer traffic, negative brand commentary, and higher tariff costs. The second quarter marks a critical checkpoint in a turnaround effort, with a new chief executive, Heidi O'Neill, set to take over shortly after results are released. For investors, this quarter will clarify whether weakening North America demand is stabilizing and whether international growth, particularly in China, can offset domestic softness amid persistent cost pressures.

Earnings Expectations

Lululemon has already provided explicit guidance for its second quarter of fiscal 2026. The company expects net revenue in a range of $2.45 billion to $2.475 billion, representing a year-over-year decline of approximately 2% to 3%. Diluted EPS is projected between $1.76 and $1.81, down sharply from $3.10 in the second quarter of fiscal 2025.

Wall Street consensus sits near the upper end of that guidance, with analysts modeling EPS of roughly $1.83 and revenue of about $2.46 billion. The company also guided second-quarter gross margin to decline about 410 basis points (a basis point is one-hundredth of a percentage point) versus the prior year, driven primarily by higher tariffs and elevated markdowns, while operating margin is expected to fall to roughly 11.6% from 20.7% a year earlier.

For the full fiscal year, Lululemon now expects revenue of $11.0 billion to $11.15 billion and diluted EPS of $10.95 to $11.15, a revision that reset expectations lower and contributed to the stock's post-earnings decline in June. Historically, Lululemon shares have been volatile around earnings, with notable double-digit percentage moves following several recent reports.

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Market Reaction and Investor Sentiment

Sentiment heading into the print remains cautious. Lululemon shares are down sharply on the year, and analysts have trimmed price targets in the weeks before the report, citing continued demand challenges in North America and a still-challenging backdrop for athletic apparel. UBS, for example, recently lowered its target to $120 while noting the risk-reward appears roughly balanced, with slightly more upside than downside given already pessimistic positioning.

The stock's reaction will likely hinge less on whether results clear a low bar and more on management's commentary around the back half of the year. Investors are watching for signs that traffic trends are stabilizing, that markdowns will ease after the second quarter, and that guidance will not be reduced again. Any signal on the timing of a demand recovery in North America could move the shares more than the headline numbers themselves.

Forward Outlook and Key Factors to Monitor

Beyond the second-quarter results, several factors will shape how investors interpret the report and what comes next for Lululemon.

First, watch North America demand. The company has pointed to traffic declines and brand-related negative commentary as key headwinds. Management's commentary on current quarter-to-date trends will be closely read as an indicator of whether the region is stabilizing.

Second, tariff and margin dynamics remain a central theme. Lululemon guided to a meaningful gross margin decline in the second quarter, driven by higher tariff costs and markdowns. Investors will want clarity on whether markdowns peak in this period and whether margin pressure eases in the second half as previously assumed.

Third, the leadership transition matters. Heidi O'Neill is set to become chief executive on September 8, 2026, shortly after results. Her early priorities and any strategic commentary from outgoing leadership could influence the stock's direction.

Finally, monitor China and international growth. While North America has weakened, the company continues to expect roughly 20% growth in China Mainland for the fiscal year. Any change to that trajectory, or commentary on competitive and geopolitical pressures, will be an important signal for the long-term growth story.

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