Lululemon ve čtvrtletí skončeném v červenci 2026 utržil 2,42 miliardy USD, meziročně o 4,3 % méně. Největší slabinu ukázala pevninská Čína s tržbami 407,1 milionu USD, což bylo pod odhady Wall Street.
Have you assessed how the international operations of Lululemon (LULU - Free Report) performed in the quarter ended July 2026? For this athletic apparel maker, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.
The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.
International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.
In our recent assessment of LULU's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
The recent quarter saw the company's total revenue reaching $2.42 billion, marking a decline of 4.3% from the prior-year quarter. Next, we'll examine the breakdown of LULU's revenue from abroad to comprehend the significance of its international presence.
A Look into LULU's International Revenue StreamsDuring the quarter, Canada contributed $285.82 million in revenue, making up 11.8% of the total revenue. When compared to the consensus estimate of $298.6 million, this meant a surprise of -4.28%. Looking back, Canada contributed $283.34 million, or 11.5%, in the previous quarter, and $321.29 million, or 12.7%, in the same quarter of the previous year.
China Mainland generated $407.1 million in revenues for the company in the last quarter, constituting 16.9% of the total. This represented a surprise of -12.62% compared to the $465.91 million projected by Wall Street analysts. Comparatively, in the previous quarter, China Mainland accounted for $478.4 million (19.4%), and in the year-ago quarter, it contributed $392.9 million (15.6%) to the total revenue.
Of the total revenue, $51.42 million came from Hong Kong SAR, Taiwan, and Macau SAR during the last fiscal quarter, accounting for 2.1%. This represented a surprise of -4.71% as analysts had expected the region to contribute $53.96 million to the total revenue. In comparison, the region contributed $51.41 million, or 2.1%, and $47.63 million, or 1.9%, to total revenue in the previous and year-ago quarters, respectively.
Other geographic areas accounted for 14.1% of the company's total revenue during the quarter, translating to $340.35 million. Revenues from this region represented a surprise of -5.65%, with Wall Street analysts collectively expecting $360.74 million. When compared to the preceding quarter and the same quarter in the previous year, Other geographic areas contributed $320.59 million (13%) and $326.47 million (12.9%) to the total revenue, respectively.
During the quarter, Mexico contributed $28.89 million in revenue, making up 1.2% of the total revenue. When compared to the consensus estimate of $25.55 million, this meant a surprise of +13.09%. Looking back, Mexico contributed $24.66 million, or 1%, in the previous quarter, and $21.92 million, or 0.9%, in the same quarter of the previous year.
Projected Revenues in Foreign MarketsWall Street analysts expect Lululemon to report a total revenue of $2.31 billion in the current fiscal quarter, which suggests a decline of 9.9% from the prior-year quarter. Revenue shares from Canada, China Mainland, Hong Kong SAR, Taiwan, and Macau SAR, Other geographic areas and Mexico are predicted to be 12.5%, 21.5%, 2.2%, 15.7%, and 1%, corresponding to amounts of $289.31 million, $497.67 million, $49.85 million, $362.59 million, and $22.08 million, respectively.
For the full year, a total revenue of $10.62 billion is expected for the company, reflecting a decline of 4.4% from the year before. The revenues from Canada, China Mainland, Hong Kong SAR, Taiwan, and Macau SAR, Other geographic areas and Mexico are expected to make up 12%, 18.5%, 2.1%, 14.1%, and 1% of this total, corresponding to $1.27 billion, $1.96 billion, $220.11 million, $1.5 billion, and $108.68 million, respectively.
In ConclusionLululemon's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.
In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.
Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.
The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.
At present, Lululemon holds a Zacks Rank #5 (Strong Sell). This ranking implies that its near-term performance might underperform the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Examining the Latest Trends in Lululemon's Stock ValueOver the past month, the stock has lost 17.9% versus the Zacks S&P 500 composite's 0.4% decrease. The Zacks Consumer Discretionary sector, of which Lululemon is a part, has declined 2.3% over the same period. The company's shares have declined 10.7% over the past three months compared to the S&P 500's 4.7% increase. Over the same period, the sector has declined 0.3%
NEW YORK, Sept. 08, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of lululemon athletica inc. (“lululemon” or the “Company”) (NASDAQ: LULU). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether lululemon and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On September 3, 2026, lululemon reported its financial results for the second quarter of fiscal year 2026. Among other items, lululemon reported lower-than-expected revenue and sharply lowered its full-year revenue and earnings guidance. The Company’s management attributed its disappointing quarterly results to negative media and social-media commentary, softer-than-planned new-product launches, and weaker store traffic.
On this news, lululemon’s stock price fell $21.16 per share, or 17.38%, to close at $100.61 per share on September 4, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
Michael Burry přesouvá sázky mimo AI a nakupuje call opce hlavně na UNH, REGN a LULU. Největší pozice má v UNH (18,88 %), REGN (18,16 %) a LULU (16,43 %).
While Wall Street piles into AI darlings, Michael Burry is quietly loading up on call options in three stocks the market left for dead, and his biggest bets carry a very specific thesis about where the crowd got it wrong.
Michael Burry, the Scion Asset Management founder made famous by The Big Short, has rotated hard into three names Wall Street left for dead. According to a portfolio breakdown circulating this week, his largest position is UNH calls at 18.88%, followed by REGN calls at 18.16% and LULU calls at 16.43%. Nine of ten disclosed positions are call options, giving him leveraged upside on the dip with defined downside. Notably absent: the mega-cap AI trade.
Burry’s pitch, as summarized in the disclosure, is that UnitedHealth, Lululemon, Estee Lauder, and JD.com are all names that got destroyed, and he is betting they snap back hard. Here is what the fundamentals say about the three healthcare and consumer bets he sized largest.
UnitedHealth: Margin Recovery Already Underway UnitedHealth Group (NYSE:UNH | UNH Price Prediction) trades at $394.34, up 21.06% year to date but still languishing after a brutal 2025. The Q2 2026 report gave Burry’s thesis teeth. Adjusted EPS came in at $6.38 on revenue of $112.03B, and consolidated operating earnings jumped to $7.99B from $5.15B a year earlier, a 55% increase. The medical care ratio improved to 86.7% from 89.4%, aided by $860M in favorable prior-period reserve development.
Management raised full-year adjusted EPS guidance to $19.50 to $20.00 and doubled the 2026 buyback commitment to at least $5B. CFO Dan Keeter framed the setup on the call: “I see 26 as a delay to that margin recovery trajectory not a setback.” Consensus for fiscal 2027 EPS has climbed to $22.44, putting the stock at roughly 18 times forward earnings. See the Q2 8-K for the raw release.
Regeneron: Dupixent Offsets EYLEA Erosion Regeneron Pharmaceuticals (NASDAQ:REGN) has been the quiet winner of the three, up 47.74% over the past year to $833.83. Q2 was a blowout: non-GAAP EPS of $14.29 versus the $8.00 consensus, a 78.62% surprise, and revenue up 16.7% to $4.29B. Dupixent, partnered with Sanofi, hit $6 billion in global net sales, up 38% year over year, with more than 1.5 million patients actively treated worldwide.
EYLEA HD U.S. sales grew 52% to $962.6M, cushioning the biosimilar-driven 45% decline in legacy EYLEA. Crucially, Regeneron fully repaid the Sanofi development balance at the end of Q2, which management said will produce a meaningful step-up in collaboration profits from Q3 onward. That is the fundamental catalyst behind Burry’s call bet.
Lululemon: Deep-Value Bet on a Broken Brand Lululemon Athletica (NASDAQ:LULU) is the most controversial position, down 52.07% year to date to $99.60. Q2 fiscal 2027, reported September 3, showed why. Revenue fell to $2.42B, down 4.3% YoY, with comparable sales down 9% globally and Americas comps down 12%. Women’s leggings sales declined approximately 20% in Q2. Management cut full-year 2026 revenue guidance to $10.35B to $10.50B and EPS to $9.48 to $9.73.
Burry’s contrarian read, per the summary: Lululemon has substantial cash and almost no debt, historically high returns on capital, and tangible value that has grown even as the stock collapsed. He has reportedly called LULU “screaming cheap” and kept adding despite the pain. Incoming CEO Heidi O’Neill joined the week after the Q2 report, and the company repurchased 2.7 million shares for $330M in Q2. Our earlier take on the setup is here.
What to Watch Next Burry’s structure matters as much as his picks. Calls decay, so timing is everything. UnitedHealth’s Q3 earnings report on Medicare cost trends, Regeneron’s November 2026 FDA decision on simdesiran, and Lululemon’s holiday comps under new leadership are the three catalysts that will decide whether Burry’s short-dated bets pay or expire worthless. For investors, the value is in noting where a well-known contrarian sees mispriced risk while the crowd chases GPUs (we studied a batch of recent runners most investors ignored and turned the pattern into a free report on the winners you already missed).
Contact [email protected] for any questions or corrections.
Lululemon po výsledcích za 2. čtvrtletí znovu snížil celoroční výhled a akcie v následující seanci spadly o 17 %. Tržby klesly o 4 % na 2,42 miliardy USD a upravený EPS se propadl o 34 % na 2,01 USD.
Ahead of Lululemon's (LULU -17.38%) fiscal Q2 earnings report, I wrote an article published on Aug. 26 that said the stock looked like a value trap and that the warning from Dick's Sporting Goods would likely spill over and impact it as well. The stock subsequently plunged 17% on Sept. 4, in the session following its earnings report, as the athleisure company reported disappointing results and cut its full-year outlook. The stock has now lost more than half its value this year and nearly three-quarters of its value over the past five years.
Let's dive into the yoga brand's latest results and prospects to see what could come next for the once-high-flying apparel stock.
Premium Feature
Moneyball Superscore
60/100
Today's Change
(
-17.38
%) $
-21.16
Current Price
$
100.61
Troubles continue Unfortunately for Lululemon, cutting guidance has become commonplace. For the fourth time since last June, it slashed its full-year outlook. It now expects revenue to decline by 7% to 5% to between $10.35 billion and $10.5 billion, down from prior expectations for sales in a range of $11 billion to $11.15 billion. Full-year adjusted EPS is projected to be between $9.48 and $9.73, but that includes a $0.86 tariff refund. Earlier, it guided to adjusted EPS of $10.95 to $11.15 without a tariff refund.
The company's Q2 results were pretty dreadful, and it looks like things are only worsening. Management noted everything from negative social media commentary to weak responses to new product launches to increased competition and brand deterioration.
Overall, the company's Q2 revenue fell 4% year over year to $2.42 billion, missing the $2.46 billion consensus estimate. Adjusted earnings per share (EPS) plunged 34% to $2.01, but were above the $1.79 consensus.
The underlying numbers were even worse. Americas revenue sank 8%, while same-store sales plunged 12%. International revenue rose 4%, but only 2% in constant currencies, while comparable sales in constant currencies slipped 6%.
China had long been a bright spot for Lululemon, but revenue fell 2% in constant currencies while same-store sales dropped 8% excluding foreign currency movements. The company said it was impacted by negative brand sentiment, which shouldn't be surprising given its big PR gaffe in China when, at an important yoga event held on the Great Wall, it inadvertently gave a Chinese actor a Japanese taiko drum to play instead of a Chinese dagu drum. Rest-of-world sales rose 6% in constant currencies, but comparable-store sales on the same basis dropped 6%.
Gross margin decreased by 200 basis points to 60.5%, but it would have been down 360 basis points when excluding the tariff refund.
Inventory was basically flat year over year, and it is doing a decent job of keeping this in check. This is an important metric to monitor for struggling brands, as big increases above sales growth can lead to more markdowns and sales.
Looking ahead, things will start getting worse for the company just as its new CEO takes over. While it is not uncommon to set a low bar when a new CEO or CFO comes on board, the company still projected a pretty meaningful sales decline. It expects Q3 revenue to decline by 10% to 11% to between $2.290 billion and $2.320 billion. Adjusted EPS is expected to fall to between $0.93 and $0.98 for the quarter, versus $2.59 a year ago.
Image source: The Motley Fool
Is the stock a buy on the dip? While Lululemon stock looks cheap, now trading at a forward price-to-earnings (P/E) ratio of around 9 times this year's and next year's analyst estimates, the stock looks like it is set to fall into the same trap as other once very popular athletic apparel brands like Nike and Under Armour. The brand has lost its luster and faces increased competition, and, quite frankly, from my viewpoint, the athleisure fashion trend is shifting. I was recently eating lunch at Panera, and nearly everyone was wearing jeans. That is not something you would have seen a few years ago.
As such, this is a stock I'd still stay far away from, and it will likely take at least several years for a potential turnaround.
Lululemon podruhé snížil celoroční výhled, což poslalo akcie v premarketu dolů asi o 18 %. Firma zároveň čelí tlaku na marže, slabší poptávce a ztrátě podílu na trhu.
Shares of Lululemon Athletica (LULU.O) fell about 18% in premarket trading on Friday after the sportswear maker cut its full-year forecast for a second time, underscoring the string of challenges that await incoming CEO Heidi O'Neill.
Known for its high-priced stretchy pants and athletic tops, Lululemon has struggled to contain shrinking margins, worsening brand perception and market-share loss to new rivals. O'Neill, who takes over on September 8, will have to chart a recovery for a company hit by merchandising missteps, an over-reliance on promotions and intensifying competition.
The firm's shares were trading at about $99 before the bell, and if losses hold, Lululemon would lose more than $2.5 billion in market value, deepening the stock's year-to-date decline to about 41.5%.
"In our view, last night's decidedly downbeat quarterly announcement is now apt to unnerve meaningfully even longer-term-oriented investors examining the name," said Brian Nagel, analyst at Oppenheimer Research, in a note.
Investors should await an initial game plan from O'Neill before considering a more constructive stance on shares, he added.
O'Neill, a former Nike executive, will be tasked with reviving demand in North America, Lululemon's largest market, and restoring growth.
Revenue in the Americas fell 8% from a year earlier in the second quarter, compared with a 1% increase the previous year, as the firm struggled to reignite demand amid slow consumer spending impacted by inflationary pressures.
Sales could deteriorate further in the second half, Morgan Stanley said, with limited visibility on when demand might recover, raising the risk of continued pressure on margins.
Following the results, at least 12 brokerages lowered their price objectives for the shares, with Piper Sandler setting the Street-low target of $80, according to data compiled by LSEG.
Lululemon's shares trade at about 11.50 times forward earnings, compared with 20.76 for peers Nike (NKE.N) and 13.41 for Adidas (ADSGn.DE).
lululemon athletica inc. uspořádala konferenční hovor k výsledkům za 2. čtvrtletí 2026. V úvodu zaznělo pouze upozornění na výhledová prohlášení a rizika s nimi spojená.
lululemon athletica inc. (LULU) Q2 2026 Earnings Call September 3, 2026 4:30 PM EDT
Company Participants
Howard Tubin - Vice President of Investor Relations
Meghan Frank - Interim Co-CEO & CFO
Andre Maestrini - Interim Co-CEO, President & Chief Commercial Officer
Conference Call Participants
Alexandra Straton - Morgan Stanley, Research Division
Irwin Boruchow - Wells Fargo Securities, LLC, Research Division
Matthew Boss - JPMorgan Chase & Co, Research Division
Lorraine Maikis - BofA Securities, Research Division
Michael Binetti - Evercore ISI Institutional Equities, Research Division
Paul Lejuez - Citigroup Inc., Research Division
Adrienne Yih-Tennant - Barclays Bank PLC, Research Division
Dana Telsey - Telsey Advisory Group LLC
Mark Altschwager - Robert W. Baird & Co. Incorporated, Research Division
Presentation
Operator
Thank you for standing by. This is the conference operator. Welcome to the lululemon athletica inc. Second Quarter 2026 Earnings Conference Call. [Operator Instructions] The conference is being recorded. [Operator Instructions]
I would now like to turn the conference over to Howard Tubin, Vice President, Investor Relations for lululemon athletica. Please go ahead.
Howard Tubin
Vice President of Investor Relations
Thank you, and good afternoon. Welcome to lululemon's second quarter earnings conference call. Joining me today are Meghan Frank, Interim Co-CEO and CFO; and Andre Maestrini, interim Co-CEO, President and Chief Commercial Officer.
Before we get started, I'd like to take this opportunity to remind you that our remarks today will include forward-looking statements reflecting management's current forecast of certain aspects of lululemon's future. These statements are based on current information, which we have assessed, but by which its nature is dynamic and subject to rapid and even abrupt changes. Actual results may differ materially from those contained in or implied by these forward-looking statements due to risks and uncertainties associated with our business, including those we have disclosed in our most recent filings with the SEC including our annual report on Form 10-K
Live 5 updates · Last at 4:54pm ET Updates appear automatically.
By Thomas Richmond · Updated Sep 3, 4:54pm ET · Published Sep 3, 3:17pm ET
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Live UpdatesNewest first
That wraps up our initial coverage of Lululemon’s Q2 results. Thank you for stopping by!
Lululemon just reported earnings, with shares initially down 15% following the report. Here are the key numbers:
Revenue: $2.416B vs. $2.46B expected Adjusted EPS: $2.92 vs. $1.80 expected Quick Read:
Lululemon delivered a massive EPS beat, but revenue missed expectations as sales fell 4% year over year.
The 15% sell-off despite the earnings beat suggests investors are far more concerned about weakening sales and the company’s turnaround trajectory than near-term profitability.
Consensus sits at , but the full-year framework matters more. Management already reset the full-year 2026 outlook to , down from .
Lululemon Athletica (NASDAQ:LULU) has historically guided conservatively, excluding tariff impacts from headline numbers.
Bullish vs Bearish Scenarios Bullish guidance would hold North America to the high-single-digit annual decline, sustain approximately 20% China growth, and flag tariff mitigation. Investors also want stability on the operating margin compression.
A bearish outcome would be another EPS cut below , deeper Americas comp erosion, or wider markdowns.
With shares already down , guidance dictates whether incoming CEO Heidi O’Neill inherits a stock ready to rebound or a falling knife.
Bull Case: Why a Beat Could Reset the Narrative China and international momentum: Q1 FY2026 China mainland revenue rose , with full-year China guidance intact at growth. Low expectations: Consensus EPS sits at just after downward revisions in 30 days, and shares trade at a P/E. Crowd conviction: Polymarket puts beat odds at , and insiders are net . Bear Case: Why Confidence May Stay Broken North America still deteriorating: Q2 guidance calls for U.S. revenue to decline in the . Margin collapse: Q2 gross margin is guided down ; operating margin drops to . Post-beat selling pattern: Beats averaged a earnings-day reaction. YTD damage: Shares are down YTD, leaving little room for a guidance cut before Heidi O’Neill arrives.
Lululemon is expected to report earnings at 4:05 PM ET, and the biggest question is whether its struggling North American business is stabilizing.
Management previously guided to low-double-digit declines in North American full-price sales, while tariffs and markdowns are expected to pressure gross margin by roughly 410 basis points this quarter.
The report also comes during a major leadership transition. Interim co-CEOs are preparing to hand control to incoming CEO Heidi O’Neill this month, putting even more attention on management’s outlook and commentary.
Lululemon now trades around 10 times earnings, reflecting how far investor confidence has fallen. An earnings beat paired with signs of stabilization in North America could begin resetting the narrative. Another guidance cut would deepen the company’s credibility problem heading into its new CEO era.
This article is updated throughout the trading day. Check back for more.
Full CoverageThe story so far
Lululemon (NASDAQ:LULU | LULU Price Prediction) is expected to report fiscal Q2 results after the bell today at 4:05 PM ET. Shares are down about 40% year to date, leading Michael Burry to call the stock “screaming cheap.”
Sentiment Meets Margin Reset Last quarter, the athletic-apparel maker posted revenue of $2.5 billion with comparable sales down 2% and diluted EPS of $1.69 versus $2.60 a year earlier. Gross margin contracted to 54.2% from 58.3%, and operating margin dropped to 11.2% from 18.5%, pressured by tariffs and fixed-cost deleverage.
Management cited “spikes of negative commentary in the media and on social channels” and product launches that underdelivered. Traffic softened over the last 6-7 weeks of the quarter. Shares fell 8.56% on the reaction, extending a rout that has pulled the stock 40.03% lower over one year.
Consensus Estimates Metric Q2’26 Estimate YoY Change FY26 Estimate FY27 Estimate Revenue $2.46B -2.6% $11.04B $11.34B EPS (Normalized) $1.7902 -42.3% $11.03 $11.46 The consensus sits inside management’s own Q2 range of $1.76 to $1.81, so the bar is set at the guide. Analyst EPS estimates for the full year have been cut from $12.30 ninety days ago to $11.03. That reset reframes any beat as damage control rather than momentum.
What I’m Watching Tonight Tonight, I’ll be watching how management frames the North America trajectory. Management guided the region to a low double-digit revenue decline in Q2 and expects markdowns to peak this quarter before improving sequentially.
Investors are also going to focus on the company’s gross margin. Tariffs alone carry a 150 basis point gross negative impact this quarter, with 100 basis points of offsets. The company is modeling a 20% back-half incremental tariff rate, and any shift there flows straight to the FY EPS range.
Mainland China is another pillar. Management guided to mid-to-high teens growth in Q2 and roughly 20% for the year, with activations including the Great Wall Yoga Experience. Sustainability of this trend after April’s brand disruption will define the international thesis.
I’ll also watch inventory. Q1 dollar inventory grew 2% while units fell roughly 4%. Cleaner units support the promised markdown moderation. Finally, analysts will listen for the tone on the new CEO Heidi O’Neill appointment and any early strategic direction.
Earnings History Quarter EPS Surprise 1-Day Move 7-Day Move 30-Day Move Q1 27 n/a -8.56% +3.97% +2.00% Q4 26 +4.8% -0.40% +1.05% +5.03% Q3 26 +17.27% +9.60% +2.19% +0.02% Q2 26 +8.74% -18.58% -4.73% +3.20% On average, shares moved -2.9% seven days after earnings across the past six reports.
Contact [email protected] for any questions or corrections.
Thomas Richmond
Thomas Richmond is a financial writer and content strategist with 5+ years of experience covering stocks and financial markets. He has published over 250 articles focused on individual stock analysis, helping investors better understand business fundamentals, stock valuations, and long-term opportunities.
Thomas previously served as a Content Lead at TIKR, a stock research platform, where he helped scale the company’s blog to hundreds of articles per month and contributed to a weekly newsletter reaching more than 100,000 investors.
He specializes in breaking down complex companies into clear, actionable insights for everyday investors, with a focus on fundamentals-driven research.
His work has also been featured on platforms including Seeking Alpha and Sure Dividend.
Outside of work, Thomas enjoys weight lifting and soccer.
It hasn't been an easy year for the luxury apparel company Lululemon (LULU +0.88%). The stock is down nearly 42% this year, largely due to weakness in North American sales and management's trimming of full-year guidance earlier this year.
The stock now trades at a cheap 11 times forward earnings. But just because a stock looks cheap, that doesn't mean it can't get cheaper, especially in the near term when sentiment is poor.
The company faces a critical earnings report on Thursday, Sept. 3, when it reports its 2026 fiscal year second-quarter earnings results after the market closes. Management will also host a live conference call with analysts.
While it's incredibly difficult to predict how a stock will move in response to a near-term event, Lululemon's next earnings report could send the stock plummeting. Here's why.
Image source: The Motley Fool.
Management could cut guidance againIn the first quarter, Lululemon slashed its full-year guidance, reducing annual revenue growth projections from 2% to 4% to flat or down 1%.
Management attributed the declining guidance to negative press, which hurt sales in the U.S. and China.
In June, Lululemon issued a public apology after a promotional event on the Great Wall of China, where it accidentally used a Japanese instrument while intending to promote Chinese culture.
There has also been a perception that the brand is not innovating enough and that its clothing line is stale.
Since then, analysts have speculated whether the company may have to take down guidance again, given that the guidance still implies improvement in the back half of the year relative to second-quarter trends.
There's been more concern since Dick's Sporting Goods recently reported earnings and lowered guidance due to sectorwide challenges, noting that it increased promotions amid competition.
Dick's doesn't carry Lulu apparel, but that doesn't mean it can't be indicative of broader industry trends.
Premium Feature
Moneyball Superscore
60/100
Today's Change
(
0.88
%) $
1.07
Current Price
$
121.88
Last week, Goldman Sachs analyst Brooke Roach reiterated a neutral rating on the stock and lowered its price target by $11 to $111 per share.
Roach noted persistent pressure on demand, weak consumer sentiment, increased promotions, and potential slowing growth in China.
Why the stock could plummetObviously, if management lowers guidance again, investors will lose a lot of confidence in the stock in the near term, meaning the company will need to show tangible progress in reversing revenue and earnings trends.
However, as I'd like to reiterate from above, predicting a stock's movement based on a near-term event is extremely difficult.
It's possible that sentiment is already so poor that even a bad earnings report that comes in just a little better than expected is enough to rejuvenate investor interest.
Lululemon still has a decent long-term investment case. The company has built a loyal customer base, as demonstrated by gross margins above 54% in its latest quarter.
Yes, that's down from over 58% a year ago, but still very strong overall. Lulu also has a new CEO starting on Sept. 8. Improved industrywide sentiment and some newer product lines that excite customers could turn the stock around.
But in the near term, it's hard for me to view the stock favorably heading into earnings, given industrywide trends and the company's recent struggles.
Algert Global LLC boosted its holdings in lululemon athletica inc. (NASDAQ:LULU – Free Report) by 2,844.4% during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 54,471 shares of the apparel retailer’s stock after acquiring an additional 52,621 shares during the quarter. Algert Global LLC’s holdings in lululemon athletica were worth $6,219,000 at the end of the most recent quarter.
Several other institutional investors and hedge funds have also made changes to their positions in LULU. Uniplan Investment Counsel Inc. bought a new stake in shares of lululemon athletica during the 4th quarter worth $26,000. Elyxium Wealth LLC purchased a new stake in shares of lululemon athletica during the fourth quarter worth $31,000. Rexford Capital Inc. acquired a new stake in shares of lululemon athletica during the 1st quarter valued at about $31,000. DV Equities LLC acquired a new position in shares of lululemon athletica during the 4th quarter worth $31,000. Finally, Gould Capital LLC bought a new position in lululemon athletica during the first quarter valued at about $32,000. 85.20% of the stock is currently owned by institutional investors.
Insider Transactions at lululemon athletica In other lululemon athletica news, Director Charles V. Bergh purchased 4,275 shares of the company’s stock in a transaction on Monday, June 15th. The shares were purchased at an average cost of $117.05 per share, with a total value of $500,388.75. Following the completion of the purchase, the director owned 10,365 shares in the company, valued at $1,213,223.25. This represents a 70.20% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.54% of the stock is currently owned by insiders.
Analyst Upgrades and Downgrades LULU has been the topic of several recent analyst reports. Barclays dropped their target price on shares of lululemon athletica from $161.00 to $113.00 and set an “equal weight” rating on the stock in a report on Friday, June 5th. Telsey Advisory Group dropped their price target on shares of lululemon athletica from $175.00 to $122.00 and set a “market perform” rating for the company in a research report on Friday, June 5th. Wells Fargo & Company lowered their target price on shares of lululemon athletica from $110.00 to $105.00 and set an “equal weight” rating on the stock in a report on Tuesday, July 21st. Citigroup dropped their price target on lululemon athletica from $185.00 to $130.00 and set a “neutral” rating for the company in a report on Tuesday, June 9th. Finally, Jefferies Financial Group reduced their target price on shares of lululemon athletica from $145.00 to $115.00 and set a “hold” rating on the stock in a research report on Friday, June 5th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, twenty-five have issued a Hold rating and five have issued a Sell rating to the company. According to MarketBeat, lululemon athletica currently has a consensus rating of “Reduce” and a consensus target price of $148.38. Get Our Latest Stock Report on LULU
lululemon athletica Price Performance lululemon athletica stock opened at $116.35 on Thursday. The company’s 50-day moving average is $117.70 and its 200-day moving average is $138.97. The firm has a market capitalization of $13.81 billion, a PE ratio of 9.39, a P/E/G ratio of 3.88 and a beta of 0.86. lululemon athletica inc. has a fifty-two week low of $104.44 and a fifty-two week high of $225.98.
lululemon athletica (NASDAQ:LULU – Get Free Report) last issued its quarterly earnings data on Thursday, June 4th. The apparel retailer reported $1.69 EPS for the quarter, beating analysts’ consensus estimates of $1.67 by $0.02. The firm had revenue of $2.47 billion for the quarter, compared to analyst estimates of $2.44 billion. lululemon athletica had a return on equity of 31.26% and a net margin of 13.03%.The company’s revenue for the quarter was up 4.3% on a year-over-year basis. During the same period in the prior year, the firm posted $2.60 EPS. lululemon athletica has set its FY 2026 guidance at 10.950-11.150 EPS and its Q2 2026 guidance at 1.760-1.810 EPS. As a group, analysts expect that lululemon athletica inc. will post 10.93 EPS for the current year.
lululemon athletica News Roundup Here are the key news stories impacting lululemon athletica this week:
Positive Sentiment: UBS expects Lululemon to potentially exceed second-quarter earnings expectations, supported by cost controls and share repurchases. The company is scheduled to report results on September 3. Lululemon Athletica Set to Top Second Quarter Earnings Expectations on Cost Control, Share Repurchases, UBS Says Positive Sentiment: Recent analyst commentary suggests LULU could benefit from disciplined expense management and buybacks even if revenue growth remains subdued. The company’s latest reported quarter also exceeded consensus estimates for revenue and earnings. Analysts Have Conflicting Sentiments on These Consumer Cyclical Companies Neutral Sentiment: Analyst sentiment is mixed ahead of the earnings release. UBS maintains a neutral view, while other coverage is focused on whether Lululemon can stabilize growth in its largest markets. Should You Buy Lululemon Stock Before Sept. 3? Negative Sentiment: UBS warned that Lululemon may reduce its fiscal 2026 earnings outlook because of weaker-than-expected sales in the U.S. and China. The firm reportedly expects a reduction of approximately $1.25 per share, raising concerns about the company’s longer-term growth trajectory. Lululemon May Cut Annual Earnings Outlook Amid Weak US, China Sales, Warns UBS Negative Sentiment: UBS lowered its LULU price target from $124 to $120 and kept a neutral rating, reflecting limited expected upside and persistent demand concerns. UBS Lowers Lululemon Price Target lululemon athletica Profile (Free Report)
lululemon athletica inc. is a design-focused athletic apparel company known for performance-oriented apparel, footwear and accessories. The company’s product portfolio centers on technical apparel for yoga, running, training and everyday active lifestyle use and includes tops, bottoms, outerwear, underwear, bags and a growing footwear assortment. lululemon emphasizes fabric science and product innovation, marketing garments that blend performance features with lifestyle styling.
Products are developed in-house and produced through a network of third-party manufacturers.
See Also Five stocks we like better than lululemon athletica Williams-Sonoma’s Quarter Gave Bulls More Than Just a Beat-and-Raise Alcoa’s Gallium Project Opens a New Door Beyond Aluminum Oura’s $16 Billion IPO Could Put a New Price on Wearable Tech Can Tesla’s Flying Roadster Distract From Its Real Risks?
Receive News & Ratings for lululemon athletica Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for lululemon athletica and related companies with MarketBeat.com's FREE daily email newsletter.
lululemon čeká za 2. čtvrtletí fiskálního roku 2026 pokles zisku i tržeb, přičemž tržby mají činit 2,45–2,475 mld. USD. Tlak vytváří slabší Severní Amerika, vyšší markdowny a cla.
Key Takeaways lululemon is expected to see Q2'26 earnings decline, with revenues estimated at $2.5B.Power of Three X2 strategy supports product innovation, guest experience and international expansion.North America softness, higher markdowns, tariffs and SG&A costs are pressuring margins in Q2. lululemon athletica inc. (LULU - Free Report) is likely to witness top- and bottom-line declines when it reports second-quarter fiscal 2026 results on Sept. 3, after market close. The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $2.5 billion, indicating 2.3% growth from the year-ago quarter's reported figure.
The consensus estimate for the company's fiscal second-quarter earnings is pegged at $1.79 per share, suggesting a 42.3% decline from the year-ago quarter’s actual. Earnings estimates have been unchanged in the past 30 days.
The Vancouver-based company has been reporting steady earnings outcomes, as evident from its bottom-line surprise trends in the past several quarters. lululemon has a trailing four-quarter earnings surprise of 8.1%, on average. Given its positive record, the question is, can LULU maintain the momentum?
Earnings WhispersOur proven model does not conclusively predict an earnings beat for LULU this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
lululemon has an Earnings ESP of 0.00% and a Zacks Rank #3.
Key Insights on Trends to Define LULU’s Q2 Resultslululemon continues to benefit from the progress in its Power of Three X2 growth strategy. The plan focuses on three key growth drivers — product innovation, guest experience and market expansion. LULU is expected to deliver solid revenue growth in the fiscal second quarter through product innovation, enhanced guest experience and aggressive international expansion under the plan.
International markets, led by Mainland China, have been posting outsized growth, while the men’s category has been gaining share. Digital investments have been strengthening the omnichannel ecosystem and disciplined store expansion has been supporting brand visibility. On the last reported quarter’s earnings call, the company noted that trends in Mainland China have been strong in the second quarter of fiscal 2026.
For second-quarter fiscal 2026, management guided China Mainland to see mid- to high-teens growth and Rest of World to record high-single to low-double-digit growth. This keeps international expansion as the primary offset to a weaker Americas demand backdrop. Our model anticipates revenues in China Mainland to increase 19.5% and Rest of World to grow 14.6% in second-quarter fiscal 2026.
However, LULU faces near-term pressure from soft North America demand and significant margin contraction. Higher markdowns, tariff-related costs and elevated SG&A expenses weighed on profitability, while cautious guidance signals slower growth and continued operating margin pressure.
North America, lululemon’s largest and most mature market, has been witnessing softness due to uneven traffic trends and increasingly cautious consumer spending, particularly in discretionary categories. The impact has been most visible in the women’s category, a core driver of the brand’s North American business. Slower momentum in North America limits consolidated growth and raises concerns about market saturation. Increased promotional activity across the broader apparel space has also intensified competition, making it harder to drive full-price sales. Until demand stabilizes and traffic improves, North America is likely to remain a drag on near-term revenue growth.
On the last reported quarter’s earnings call, management cited a recent moderation in sales trends tied to spikes of negative brand commentary and product launches that have not met expectations, and noted it is moving with urgency to adjust product and increase marketing and community activations.
Management’s near-term outlook points to a tougher demand and margin setup in the fiscal second quarter. Management reduced its outlook after sales trends moderated exiting first-quarter fiscal 2026. For second-quarter fiscal 2026, it expects revenues of $2.45-$2.475 billion, suggesting a 2-3% fall, and EPS of $1.76-$1.81, whereas it registered EPS of $3.10 in the year-ago quarter.
lululemon’s margins are expected to remain under pressure in the to-be-reported quarter due to higher product costs, increased markdowns, unfavorable channel mix and tariff pressures. For second-quarter fiscal 2026, management expects the gross margin to move down 410 bps, led by higher tariff costs and ongoing investments in store openings, optimizations and the distribution network. Tariffs are expected to be a 150-bps headwind, with offsets of 100 bps. Meanwhile, markdowns are likely to rise 50 bps due to additional seasonal clearance.
For second-quarter fiscal 2026, management expects SG&A deleverage of 500 bps, driven by lower sales versus prior expectations, proxy costs, increased marketing and the reintroduction of expenses reduced last year, including store labor hours. LULU expects the second-quarter fiscal 2026 operating margin to contract 910 bps year over year to 11.6%.
LULU’s Price Performance & Valuationlululemon’s shares have exhibited a downtrend in the past three months, losing 11.4% against the industry’s growth of 2.2%. The company has also underperformed the Zacks Consumer Discretionary sector and the S&P 500’s growth of 2% and 0.5%, respectively.
lululemon’s 3-Month Performance
Image Source: Zacks Investment Research
From the valuation standpoint, the company trades at a forward 12-month P/E multiple of 10.33X, below the industry average of 15.05X.
Image Source: Zacks Investment Research
Stocks With Favorable CombinationHere are some companies, which, according to our model, have the right combination of elements to post an earnings beat this season:
Victoria's Secret (VSXY - Free Report) has an Earnings ESP of +5.20% and currently sports a Zacks Rank of 1. The company is likely to register growth in the top and bottom lines when it reports second-quarter fiscal 2026 results. The consensus mark for VSXY’s quarterly revenues is pegged at $1.6 billion, which indicates an 11.2% rise from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for VXSY’s quarterly earnings has moved up by a penny in the past 30 days to 77 cents per share. The consensus estimate indicates a significant 133% rise from the year-ago quarter’s actual. VSXY has an average trailing four-quarter earnings surprise of 81.9%.
Macy's Inc. (M - Free Report) currently has an Earnings ESP of +20.81% and a Zacks Rank of 2. The company is likely to register growth in the top line when it reports second-quarter fiscal 2026 results. The consensus mark for M’s quarterly revenues is pegged at $4.8 billion, which indicates a 0.2% rise from the figure reported in the prior-year quarter.
The consensus mark for Macy's quarterly earnings has moved up 5.7% in the past 30 days to 37 cents per share. However, the consensus estimate indicates a decline of 9.8% from the year-ago quarter’s actual. M has an average trailing four-quarter earnings surprise of 211%.
NIKE Inc. (NKE - Free Report) currently has an Earnings ESP of +0.55% and a Zacks Rank of 3. NIKE is likely to register top- and bottom-line declines when it reports first-quarter fiscal 2027 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $11.5 billion, which indicates a 2.2% decline from the prior-year quarter’s actual.
The consensus estimate for earnings has moved up by a penny in the past 30 days to 44 cents per share, which implies a 10.2% decline from the year-ago quarter's actual. NKE has an average trailing four-quarter earnings surprise of 56.8%.
Lululemon očekává za fiskální 2026 2. čtvrtletí tržby 2,450 až 2,475 miliardy USD, tedy pokles o 2 % až 3 %. Zisk na akcii má činit 1,76 až 1,81 USD, výrazně pod 3,10 USD před rokem.
It's time for Lululemon Athletica (LULU +4.65%) to show us if its financial results can stretch as well as some of its signature yoga gear and fitness apparel. Lululemon reports its 2026 fiscal second-quarter results after the market close on Sept. 3.
Expectations are low, and understandably so for a stock that has been cut nearly in half from its December high. Lululemon's own guidance from early June calls for $2.450 billion to $2.475 billion in revenue, a 2% to 3% decline. Its per-share profit forecast of $1.76 to $1.81 for the quarter is well below the $3.10 it posted for the same quarter last summer.
Image source: Getty Images.
It's a downward-facing dog Investors of the struggling retail stock could use a break. After five fiscal quarters of uninspiring single-digit revenue growth, Lululemon is bracing investors for only its second quarterly decline since going public 19 years ago. The only other time this happened was the first quarter of the COVID-19 shutdown.
Bulls will argue that Lululemon is cheap, trading for just 9 times trailing earnings. However, that's a flimsy argument when the bottom line has declined for five consecutive quarters. The chain's guidance predicts that the streak will extend to six reports in two weeks. Lululemon's forward earnings multiple is just above 10 right now.
Today's Change
(
4.65
%) $
5.38
Current Price
$
121.07
Hoping for a cobra pose The good news is that the pessimism is already baked into today's share price. Lululemon has lost a lot of key hires -- including its chief AI and technology officer last week, bolting after less than a year at the retailer -- but that also results in fresh thinking.
There is change coming, even at the top. Former Nike executive Heidi O'Neill will begin leading the company on Sept. 8, a few days after its fiscal second-quarter update. She won't have to return to Lululemon's heady days of growth to make the stock a market beater again. Simply reversing the negative sales and earnings trends could be enough. Namaste.
Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nike. The Motley Fool recommends Lululemon Athletica Inc. The Motley Fool has a disclosure policy.
Lululemon letos klesl o 44 % a tržby v 1. čtvrtletí vzrostly jen o 4 % na 2,5 miliardy USD, zatímco čistý zisk spadl na 195 milionů USD. Akcie se podle technického obrazu mohou dál propadat k 100 USD.
Sell LULU. Fundamentals are rolling over (revenue growth from ~30% to ~5%, Americas down, China slowing, net income down). Even with a lower forward P/E (~10.5), the article flags “value trap” risk. Chart confirms bear control: below $159 support, below 50-week EMA, bearish flag into a horizontal channel—setup for a breakdown toward $100 and then $80.
Key Risk: Lululemon proves a real turnaround fast (clear guidance re-accelerating growth and margins), causing the stock to reclaim $159 and invalidate the breakdown path.
Nike (NKE) short
Sell NKE as a high-conviction peer trade. The article shows the whole industry is in a synchronized drawdown (Nike down ~50% in 12 months, ~77% in 5 years). If Lululemon is struggling with demand and profitability, Nike’s brand-led demand and inventory cycle risk likely keeps pressure on the group, especially if consumers keep trading down.
Key Risk: Nike delivers a sharp demand/inventory correction with strong forward guidance that lifts the whole discretionary apparel complex and forces multiple expansion.
Lululemon stock continues to underperform the broader market as the company’s and industry’s challenges continue. LULU is down by 44% this year and by 71% in the last five years, a dramatic reversal for a company that was once one of the most popular among retail and institutional investors.
LULU’s retreat has coincided with that of other top companies in the industry. Nike stock has dropped by 50% in the last 12 months and by 77% in the last five. In Germany, Adidas has fallen by 50% in the last five years, while On Holding is down by 33% in the same period.
Lululemon, a company whose business boomed during the pandemic, has done well in the past few years as its growth trajectory has stalled.
It has moved from having double-digit growth to single digits. In 2023, the company’s revenue growth was nearly 30%, a figure that dropped to 4.8% last year.
The most recent results showed that its net revenue rose by just 4% in the first quarter to $2.5 billion or 2% on a constant-dollar basis.
Most notably, its key markets are no longer doing well. Its Americas revenue dropped by 3%, a notable development since it is its most profitable.
Its international segment’s revenue jumped by 22% in the quarter, with its comparable sales rising by 13%. While these growth metrics are good, they are much lower than where they were a few quarters ago. Mainland China’s revenue has also slowed drastically in the past few months.
The company’s profits have also plunged. Its net income dropped to $195 million in the first quarter from $314 million in the same period last year.
Lululemon’s growth is expected to be minimal in the coming years. The average estimate among analysts is that its second-quarter revenue will be $2.46 billion, down by 2.55% from a year earlier. For the year, its revenue is expected to drop by 0.54% to $11.04 billion, followed by a modest growth next year to $11.34 billion.
Therefore, the company’s valuation has become a bargain. Its forward price-to-earnings ratio dropped to 10.5, lower than the consumer discretionary median of 17, and the five-year average of 28. Despite its cheap valuation, there is a possibility that it may be a value trap. Unless the company demonstrates a clear turnaround strategy, the stock will likely continue falling.
LULU stock chart | Source: TradingView
The weekly chart shows that the LULU stock has been in a strong sell-off for a while. It has slumped below the important support level of $159, its lowest level in September and November last year.
Lululemon stock has slumped below the 50-week Exponential Moving Average (EMA), a sign that bears remain in control. The stock has formed a bearish flag pattern and is now in the horizontal channel.
Therefore, the stock will likely continue falling, potentially to the key support level of $100. A move below that support will point to further downside towards $80.
Lululemon v poslední seanci vzrostl o 2,36 % na 119,26 USD a překonal růst indexu S&P 500 o 0,42 %. Trh očekává výsledky, u nichž se odhaduje EPS 1,79 USD a tržby 2,47 mld. USD.
Lululemon (LULU - Free Report) closed at $119.26 in the latest trading session, marking a +2.36% move from the prior day. This change outpaced the S&P 500's 0.42% gain on the day. Elsewhere, the Dow saw an upswing of 0.29%, while the tech-heavy Nasdaq appreciated by 0.29%.
Prior to today's trading, shares of the athletic apparel maker had lost 4.37% lagged the Consumer Discretionary sector's gain of 0.02% and the S&P 500's gain of 2.2%.
Investors will be eagerly watching for the performance of Lululemon in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.79, marking a 42.26% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $2.47 billion, reflecting a 2.26% fall from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.08 per share and a revenue of $11.08 billion, signifying shifts of -16.44% and -0.22%, respectively, from the last year.
Any recent changes to analyst estimates for Lululemon should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.51% lower. Currently, Lululemon is carrying a Zacks Rank of #5 (Strong Sell).
From a valuation perspective, Lululemon is currently exchanging hands at a Forward P/E ratio of 10.52. This expresses a discount compared to the average Forward P/E of 15.73 of its industry.
Also, we should mention that LULU has a PEG ratio of 3.77. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Textile - Apparel industry stood at 2.14 at the close of the market yesterday.
The Textile - Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 191, placing it within the bottom 23% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Lululemon čelí další ráně důvěry po kritice za kulturní necitlivost v Číně. Firma už dříve varovala před poklesem čistých tržeb o 2 % až 3 % ve druhém čtvrtletí.
SHENYANG, CHINA - JUNE 13: Hundreds of yoga enthusiasts practice yoga at the Sun Square of Shenyang Grand Theatre on June 13, 2026 in Shenyang, Liaoning Province of China. (Photo by Cai Jingyu/VCG via Getty Images)
VCG via Getty Images
At a May 30 promotional event on the Great Wall of China, the company featured a giant Japanese taiko drum instead of a culturally appropriate Chinese dagu drum for a musical performance. The misstep immediately sparked backlash for cultural insensitivity and drew over 50 million views on Weibo—other Western brands, including H&M, Dolce & Gabbana, Dior, Burberry, and Gucci, have been caught in similar cultural crosshairs.
It took Lululemon over two weeks to acknowledge the mistake and issue an apology on Weibo, pledging its commitment to honoring Chinese culture—a critical priority for Western brands doing business in China—and accepting responsibility for an inadequate planning and review process.
As global communications firm Edelman said, “Trust is the currency of consumer power,” and another misstep gives loyal customers an excuse to leave the brand and potential customers a reason to look elsewhere—something Lululemon can ill afford now as its business growth slows, leadership is in transition and its stock price is down 50% this year.
Plagued By ControversiesControversies have haunted Lululemon almost from the beginning in 1998 under founder Chip Wilson. He explained that the company name with multiple L’s was originally chosen because it was a letter that Japanese people couldn’t pronounce. “It’s funny to watch them try to say it,” he infamously said.
He later walked it back later by saying the name is “innately North American and authentic” because the letter L does not exist in Japanese phonetics. The Chinese drum controversy recalled those remarks, reinforcing the perception that Lululemon still struggles with cultural awareness.
MORE FOR YOU
Wilson continued to make highly controversial remarks throughout his tenure with the company, which officially ended in 2015. Though as the company’s single largest shareholder, he has persisted in speaking out publicly against leadership’s decisions, most recently in his proxy battle to get his chosen picks on the board.
Back in the day, Wilson defended not offering clothing for plus-sized women because such larger sizes were too expensive to make and he blamed excess pilling in some designs because women were wearing the clothing wrong or had a body shape that wasn’t suitable to its designs.
Beyond such insensitive remarks, the company had a major quality issue in 2013 after widespread complaints emerged that its yoga pants were too sheer. That led to millions of yoga pants being recalled and a reputational crisis for the brand.
Lululemon was hit with further complaints about sheerness in its Align leggings in 2021 and again in 2025. Early this year is got the same complaints for its Get Low leggings, causing the company to temporarily halt online sales. Plus, in 2024, the Breezethrough leggings were pulled for quality issues.
It also was caught making false claims about the health benefits of products made with seaweed-infused fabrics. In 2007, the Canada’s Competition Bureau ruled the company’s claims of anti-inflammatory, detoxifying qualities in its Vitasea product line were unsubstantiated, false and misleading and forced the company to remove all such health benefit claims from its advertising and marketing.
And most recently, in April, the Texas Attorney General Ken Paxton has launched an investigation into Lululemon’s use of PFAS, so-called “forever chemicals” that don’t break down in the environment and may have negative health effects. The company claims it phased out use of the substances in early 2024 and is cooperating with the state. However, it’s one more black eye against the company.
Taken together, these controversies suggest a pattern that Lululemon has never fully put behind it. They invite debate about whether the most recent missteps will quickly fade from memory or if they deepen a persistent trust problem for the brand.
Clouds Of UncertaintyThe general consensus is that the latest China misstep will leave no permanent damage. BNP Paribas analyst Laurent Vasilescu said, “The push back tends to be a short-term headwind.” And RepTrak’s Stephen Hahn noted any reputational damage will remain confined to the local market and have no long-term impact globally. “This story is less likely to drum up any major reputational noise about Lululemon outside of China.”
However, the China drum incident, paired with the Texas AG’s PFAS investigation, reopens the question of whether Lululemon is a brand consumers can trust. It refreshes memories of past controversies and casts the company once again in a negative light.
Notably, during the first-quarter earnings call, the company acknowledged it experienced “spikes of negative commentary” in the media and across social media—including in China where brand momentum slowed after a strong Chinese New Year. And that was before the Great Wall of China fiasco, casting a cloud over second-quarter results, potentially even beyond.
Customer trust is the key metric. Edelman’s global research among 15,000 consumers in 15 countries found 88% rank trust equally important to “ best quality” and “good value for the money” when making a purchase decision. Lululemon is challenged on all counts—quality questions persist, value is threatened amid rising prices and trust shaken by cultural missteps and regulatory scrutiny.
GlobalData retail analyst and managing director Neil Saunders told CBS News earlier this year that Lululemon’s products have become “junkified,” adding, “What it suggests is that there’s kind of a lack of quality control, there’s a lack of care, there’s a lack of attention to detail.”
Reasons To FleeConsumers have a long memory when controversies around a brand’s cultural sensitivity and product quality issues resurface again and again—a memory that shapes how they interpret its latest controversies and could drive them to look elsewhere. And unlike in Lululemon’s early days, the competition is coming on strong.
Privately-held Vuori has reached a market cap of $5.5 billion valuation after a recent investment round. It’s on a path to 100 global stores, including five just opened in China, and an IPO is rumored to be in the works.
Alo Yoga has about 130 stores globally, with plans to open a 7,000-square-foot, two-story Hong Kong waterfront store shortly. Forbes estimates that Alo Yoga’s parent company, Color Image Apparel, has generated nearly $2 billion most recently.
And heavy-hitter Nike entered the premium women’s activewear market in a collaboration with Kim Kardashian’s SKIMS brand last year, with the NikeSKIMS product line expanding globally this year.
The irony is that Lululemon, a brand that once defined the athleisurewear category, opened the door for these and other challengers while being distracted by controversies of its own making.
And hanging over all of this is Chip Wilson’s highly-publicized proxy battle where he was characteristically outspoken about the company’s leadership mistakes and claims that Lululemon has “lost its cool.”
Eroding TrustBefore the China drum backlash, Lululemon was guiding on a net revenue decline between 2%-3% in the second quarter, after squeaking out 4% revenue growth in the first quarter. In the latest earnings call, the company acknowledged headwinds as it entered the second quarter around negative publicity—e.g. Wilson’s critiques and the Texas PSFA investigation—and recent product launches that didn’t “generate anticipated guest response,” such as the alleged see-thru Get Low leggings.
These remarks came before the China controversy, which is likely to hit the company’s sales harder than its earlier guidance suggests. Noting that momentum is slowing in China—comparable sales slipped from 30% in fourth quarter 2025 to 20% in first quarter 2026—BNP Paribas warned, “We are worried that China revenues will flatten out,” as it also expressed concerns about Lululemon’s continued decline in North America—the Americas comparable sales dropped 5% in first quarter. And the firm noted this was before the full impact of the two recent social media controversies are factored into results.
The last thing Lululemon needs now is further erosion of consumer trust and while the particulars of the latest controversies will fade, more general negative feelings about the brand are likely to persist, adding fuel to the competition’s fire.
If trust continues to slip, the question won’t be if Lululemon can regain momentum with new product drops and marketing initiatives, but whether consumers will continue to give the brand the benefit of the doubt.
See Also:
ForbesLululemon Controversy In China Threatens Growth In Key MarketBy Mary Whitfill RoeloffsForbesLululemon Founder Chip Wilson Wins Two Board Seats To End Bitter Proxy BattleBy Pamela N. DanzigerForbesLululemon's Billionaire Founder Has Been Fighting To Oust Its CEO–He Won, But He’s Still Not HappyBy Simone Melvin
Akcionáři Lululemon schválili tři kandidáty vedení do představenstva, čímž pomohli uzavřít vleklý spor se zakladatelem Chipem Wilsonem. Akcie po zprávě vzrostly o více než 3 %.
Lululemon Athletica Inc (NASDAQ:LULU) shares rose more than 3% after shareholders approved three management-backed directors at the company’s June 25 annual general meeting, helping resolve a prolonged proxy dispute with founder Chip Wilson.
The elected directors include former Levi Strauss CEO Chip Bergh, Unilever executive Esi Eggleston Bracey and finance veteran Teri List. Their appointment strengthens the board as the company prepares for incoming CEO Heidi O’Neill, who is set to take over in September.
Lululemon also confirmed that two of Wilson’s nominees, former On co-CEO Marc Maurer and former ESPN chief marketing officer Laura Gentile, have also joined the board as independent directors.
A third mutually agreed director is expected to be added by October 1, expanding the board to 11 members.
The changes follow a settlement reached in May aimed at ending months of public tension between Wilson, who owns about 8.6% of the company, and Lululemon’s leadership.
Under the agreement, Wilson has also committed to an 18-month period of refraining from public criticism of the company.
Lululemon has struggled amid intensifying competition from rivals such as Alo Yoga and Vuori, with the stock down about 50% in the last 12 months.
