lululemon athletica Reports Q2 Revenue Decline Amid Weaker Sales and Product Demand Shifts
Lululemon Athletica (NASDAQ:LULU) reported a second-quarter revenue decline of 4% year over year to $2.4 billion, with comparable sales falling by 10%. The company cited weaker traffic in North America and China Mainland, negative brand sentiment, inconsistent product launches, and shifting consumer preferences toward looser silhouettes as key factors behind the underperformance. Women's leggings saw a significant drop of approximately 20%, while newer wide-leg styles, select apparel lines, and golf products performed better. In response, lululemon is reducing SKUs, improving inventory management, and focusing on replenishing stronger sellers. The company also cut its full-year revenue forecast to $10.35 billion–$10.5 billion from a previous target of higher growth. Lululemon plans to increase marketing investment while tightening expenses and slowing new store openings to about 35 for the year. Management acknowledged negative media commentary, particularly following an event at China's Great Wall mentioned in its first-quarter call.
Tickers: $LULU
Topics: comparable_sales_drop inventory_management outlook_cut revenue_decline