lululemon cuts its outlook again as comparable sales fall in every region it discloses
lululemon's Q2 revenue fell 4% and comparable sales dropped 9% worldwide, with declines across the Americas, International and China Mainland alike, as the company cut its full-year guidance again — without a Japan-specific figure to say how the market is actually doing.
lululemon athletica reported second-quarter fiscal 2026 revenue of $2.4bn, down 4% year on year (5% at constant currency), with comparable sales falling 9% (10% constant currency) across the business, the company said in its earnings release.
The decline was steepest in the Americas, where comparable sales fell 12% and revenue fell 8%. International revenue rose 4% (2% constant currency) even as comparable sales there fell 3% (6% constant currency) — new stores adding revenue while existing ones lost ground. China Mainland followed the same pattern: revenue up 4% (down 2% constant currency) against comparable sales down 2% (8% constant currency). Diluted earnings per share came to $2.92, down from $3.10 a year earlier, though the latest figure includes an $0.86-per-share one-off benefit from tariff refunds — strip that out and the underlying decline is sharper.
lululemon lowered its full-year revenue guidance again, to $10.35bn-$10.5bn, implying a 5-7% drop for the year, and cut its full-year diluted EPS guidance to $9.48-$9.73. For the current quarter it guided to revenue of $2.29bn-$2.32bn, down 10-11%. Interim co-chief executive and chief financial officer Meghan Frank said in the release, "We continue to navigate challenging dynamics while taking a prudent approach with our revised full-year outlook." Incoming chief executive Heidi O'Neill starts next week, according to interim co-CEO André Maestrini.
Notably absent from the release is any Japan-specific figure — lululemon's regional disclosure stops at "International" and a standalone China Mainland line, the same level of detail global apparel and beauty groups from Nike to Estée Lauder often give when Japan isn't yet large enough, or not weak enough, to warrant its own. The company opened its Harajuku global flagship in July, a Product-and-Place bet on Tokyo just as its home market slows, but this release gives no way to say from lululemon's own numbers whether that bet is paying off.
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