Shoppers walk past a Lululemon store in a shopping mall on June 21, 2026 in Hong Kong, China.Cheng Xin | Getty Images Lululemon shares plunged 15% on Thursday after the retailer reported another quarter of disappointing results and lowered its outlook for the year. The company reported a 4% decline in revenue and a 9% comparable sales decline for the fiscal second quarter. It was just the latest difficult quarter for the clothing retailer, after it lowered its guidance in the previous quarter. Interim CEO Meghan Frank said in a call with analysts that the company experienced “negative comments” on social media that affected its performance in the second quarter. The company also saw a “larger-than-expected” slowdown in some of its core categories, including leggings. “While we are seeing good guest reaction to our activations and some of our newest styles, the overall response to our product launches remains inconsistent and we have continued to see brand pressure in our two largest markets,” Frank said. For the fiscal third quarter, Lululemon said it expects revenue to be between $2.29 billion and $2.32 billion, a decline of about 10% to 11% from a year ago. It anticipates earnings of 93 cents to 98 cents per share for the period. For the full year, Lululemon said it expects net revenue of between $10.35 billion and $10.5 billion, down 5% to 7%, and below its previous guidance of $11.0 billion to $11.15 billion. It anticipates earnings to be between $9.48 and $9.73 per share, compared to previous guidance of $10.95 to $11.15 per share. That new outlook includes a boost to fee refunds, Lululemon added. Here’s how Lululemon performed in its fiscal second quarter compared to what Wall Street expected, according to a survey of analysts by LSEG: Earnings per share: $2.92, it wasn’t immediately clear if that was comparable to the $1.79 expected Revenue: $2.42 billion versus $2.46 billion expected For the quarter, Lululemon reported net income of $329.2 million, or $2.92 per share, compared with $370.9 million, or $3.10 per share, a year earlier. The company said its gross profit decreased 1% to $1.5 billion, while its gross margin grew 5.6%, driven by a tariff refund of $134.5 million. Frank said on Thursday’s call that Lululemon management is focusing on introducing new styles and adjusting inventory to return to sales growth. “We know there is a lot more work to do,” Frank said. “The leaders and employees of our management team are focused on serving our guests and executing initiatives to drive change in our business.” Lululemon has been struggling to regain strength and relevance among its customers even as it faces criticism from founder Chip Wilson. The company’s new CEO, Heidi O’Neill, will take the reins of the retailer next week. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.
