lululemon athletica inc. (LULU) Earnings Call Transcripts
lululemon athletica inc.'s Latest Earnings Call - Q2 FY2027
In the second quarter of fiscal year 2026, lululemon athletica inc. reported total net revenue of $2.4 billion, a decline of 4% year-over-year, driven by an 8% decrease in North America and a 2% decline in China Mainland on a constant currency basis. Earnings per share (EPS) came in at $2.92, down from $3.10 in the same quarter last year. Management lowered its full-year revenue guidance to a range of $10.35 billion to $10.5 billion, reflecting a 5% to 7% decline compared to 2025, citing inconsistent product performance and negative brand sentiment as key challenges.
Reported metrics
| Metric | Value |
|---|---|
| Total Revenue | $2.4B (miss) |
| EPS | $2.92 (miss) |
| North America Revenue | $1.6B (neutral) |
| China Mainland Revenue | $400M (miss) |
| Gross Margin | 60.5% (positive) |
| SG&A Expenses | $1.01B (negative) |
Guidance from management
For Q3, management expects revenue in the range of $2.29 billion to $2.32 billion, representing a decline of 10% to 11%. Full-year guidance has been lowered to $10.35 billion to $10.5 billion, reflecting a more cautious outlook due to current trends.
What management said
Great. Thanks, Alex. I'll give some details on just stores overall, and then Andre is going to provide a little bit of color. So in terms of stores, we were scrutinizing every deal. We're opening 35 net new stores this year, about 10 of those net new stores in North America, 7 of those are in Mexico. Of the openings, we've got in North America, about half of them are pop-up conversions where we've got evidence of str...
Yes. I think what Andre was referring to was in certain markets where we're seeing them be more promotional, for example, Australia, and we are not participating in those promotions. I would say, overall, our goal has been to return to a healthy full-price penetration of business. Clearly, with revenue, not where we expected this year, we have more seasonal product to clear through by year-end, and that's reflected i...
What analysts pressed on
Analysts expressed concerns about the company's ability to stabilize its cost structure amidst declining sales. There are worries about whether the current traffic issues can be resolved through increased marketing or if deeper product adjustments are needed. Additionally, there are questions regarding the sustainability of the brand's growth in light of recent performance trends in key markets.
Main topics on the call
- Revenue Decline in Key Markets — North America revenue decreased by 8%, while China Mainland revenue grew only 4%, with a 2% decline on a constant currency basis. Management noted, "we faced negative commentary in the media and social channels, which im...
- Lowered Full-Year Guidance — Management revised full-year revenue guidance down to $10.35 billion to $10.5 billion, indicating a 5% to 7% decline from the previous year. This change reflects a more cautious outlook due to current trends in North Ame...
- Mixed Product Performance — While some new styles are performing well, overall product launches have been inconsistent. Leggings sales declined approximately 20% in Q2, with management stating, "we are not yet able to fully offset these declines."
- Increased Marketing Investments — Management plans to boost marketing investments in the second half of the year to drive brand engagement and traffic. They noted, "we are increasing our marketing investment in the back half of the year to drive improved...
Read the full lululemon athletica inc. transcript (Q2 FY2027) → Summary generated from the call transcript; every figure above is stated by management on the record.
About lululemon athletica inc.
lululemon athletica inc. (LULU) is a publicly listed company in the Textiles, Apparel and Luxury Goods industry, within the Consumer Discretionary sector. It trades on NasdaqGS and is based in US. EarningsCalls.dev maintains a free, full-text archive of its earnings call transcripts — 36 calls on record spanning March 26, 2020 to September 3, 2026. Every transcript is split into speaker-by-speaker segments with headline metrics, free to read or available through our REST API.
Earnings Call History
EarningsCalls.dev has 36 lululemon athletica inc. earnings call transcripts on record, spanning March 26, 2020 to September 3, 2026. Based on this history, lululemon athletica inc. reports quarterly. The most recent call on file is dated September 3, 2026. The full list is below — each row opens the complete, free-to-read transcript.
- Ticker
- LULU
- Exchange
- NasdaqGS
- Country
- US
- Sector
- Consumer Discretionary
- Calls on record
- 36
- First call
- March 26, 2020
- Most recent
- September 3, 2026
- Reporting cadence
- quarterly