The Lululemon earnings outlook was revised lower after the athletic apparel company reported declining revenue, comparable sales and operating income for its fiscal second quarter.
Lululemon Athletica (Nasdaq: LULU) said revenue decreased 4% from a year earlier to $2.4 billion, while comparable sales fell 9%. The figures were disclosed in the company’s earnings release filed with the SEC.
Operating income declined 13% to $453.7 million, and diluted earnings per share fell to $2.92 from $3.10. Results included $134.5 million of tariff refunds and associated interest, which increased earnings by $0.86 per share.
Lululemon Earnings Outlook Reflects Continued Sales Pressure
For the third quarter, the company expects revenue of $2.29 billion to $2.32 billion, representing a decline of 10% to 11%. Forecast diluted earnings per share range from 93 cents to 98 cents.
Full-year revenue is now projected at $10.35 billion to $10.50 billion, down 5% to 7%, with diluted earnings per share of $9.48 to $9.73. Americas revenue fell 8% in the second quarter, while international revenue increased 4%.
The revised guidance assumes no further tariff refunds and remains exposed to changes in consumer demand, product execution and macroeconomic conditions. Lululemon shares fell sharply after the report, reflecting concern that the sales slowdown may take time to reverse.
