Lululemon tumbles 15% on weak guidance despite Q2 earnings beat

Live updates

1. 11d ago

   Lululemon stock drops up to 20% after second guidance cut

   Lululemon shares plummeted between 15% and 20% following the release of second quarter fiscal 2026 results. While the company beat earnings expectations, it issued a cautious third-quarter revenue outlook and reduced its full-year fiscal 2026 forecast. The decline follows a drop in revenue and falling demand in the Americas. Financials were bolstered by $134.5 million in tariff refunds, which added $0.86 per share to the quarter. Investor Michael Burry has labeled the company a "trickster" but intends to buy more shares if the price falls below $100.

   Why it matters

   Lululemon is a major player in athletic apparel and footwear. This second guidance cut of the year suggests systemic struggles with sales growth and consumer demand. Analysts suggest the current financial volatility may persist.

   What is confirmed

   • Lululemon stock fell between 15% and 20% following the Q2 results.
   • The company reduced its fiscal 2026 revenue and earnings outlook.
   • Lululemon issued a cautious revenue outlook for the third quarter.
   • Revenue declined during the second quarter.
   • Michael Burry called Lululemon a "trickster" and expressed intent to buy shares under $100.

   Still unconfirmed

   • Tariff refunds of $134.5 million added $0.86 per share to the quarter.
   • The stock cratered below $100.

   What to watch next

   • Third-quarter revenue reports to see if Americas demand stabilizes
   • Further analyst revisions of Lululemon's long-term valuation
   Sources used for this update (11)

   1. CNBC — Lululemon stock plunges 15% on disappointing earnings and outlook
   2. WSJ — Lululemon Cuts Outlook Again After Another Tough Quarter for Sales
   3. Lululemon — lululemon athletica inc. Announces Second Quarter Fiscal 2026 Results
   4. Yahoo Finance — Lululemon sinks after cutting forecast as revenue declines
   5. Yahoo Finance — LULU Stock Sinks 18% Overnight: Michael Burry Says Lululemon Is A ‘Trickster’ As He Vows To Buy More Under $100
   6. Yahoo Finance — Lululemon tumbles 15% on weak guidance despite Q2 earnings beat
   7. Seeking Alpha — LULU stock sinks 18%: Michael Burry calls Lululemon a ‘trickster,’ eyes dip buying under $100
   8. blockonomi.com — Lululemon (LULU) Stock: Plunges 20% After Weak Q2 Sales and Guidance Cut
   9. 247wallst.com — Lululemon Sinks 20% After Second Guidance Cut: Michael Burry Calls It a Fat Pitch Below $100
   10. uk.finance.yahoo.com — Lululemon Stock Falls 18% as Tariff Refunds Mask Sales Decline
   11. www.rttnews.com — Lululemon Athletica Q2 Results Drop, Warns On Weak Q3 Revenues, Cuts FY26 View; Stock Down 18%
   confidence 90%