Lululemon Cuts Guidance Amid Revenue and Sales Declines
lululemon (NASDAQ:LULU) reported weaker-than-expected second-quarter fiscal 2026 results, with net revenue falling to $2.4 billion—missing analyst expectations—and comparable sales dropping by 10%. The company cut its full-year guidance for both revenue and earnings per share, citing ongoing challenges in the market. Shares fell nearly 18% after hours as investors reacted negatively. Despite these setbacks, some analysts see potential value following the selloff. Citi reduced its price target but noted improved risk-reward dynamics post-sell-off. Operational improvements such as increased chase volume and strong performance of away-from-body styles suggest early signs of recovery. The company also maintained a robust balance sheet with $1.4 billion in cash. However, the bearish sentiment is widespread among analysts who have significantly lowered their price targets due to structural headwinds. North America revenue declined by 8%, leggings sales dropped around 20%, and China's performance was mixed amid negative social media reactions.
Tickers: $LULU
Topics: guidance_cut retail stock_performance