Q2 Revenue Decline
Lululemon Announces Second Quarter Revenue Decrease and Lowers Full-Year Financial Outlook
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Lululemon athletica reported declining sales in its second quarter of fiscal 2026, with revenue falling 4% to $2.4 billion. Comparable sales dropped 9% as the athletic wear maker struggles to maintain growth momentum Recorder. The company now forecasts full-year revenue between $10.35 billion and $10.5 billion, representing a 5% to 7% decline from the prior year.
Interim Co-CEO and CFO Meghan Frank said the company is focused on acceleration through better products and marketing spending while controlling costs National Post. Lululemon added nine net new stores during the quarter, bringing its total to 825 locations worldwide.
Revenue Decline Marks Challenging Quarter for Lululemon
Lululemon's second quarter results show weakness across the board. Revenue dropped 4% to $2.4 billion in USD terms, or 5% when adjusted for currency fluctuations Montreal Gazette. The bigger concern is comparable sales, which fell 9% — or 10% on a constant dollar basis — signaling fewer customers buying at existing stores.
The decline comes as the company faces increased competition and shifting consumer spending on athletic wear. The weak comp sales suggest Lululemon's pricing power and brand appeal have softened in recent months Fort Saskatchewan Record.
Full-Year Outlook Cut as Headwinds Continue
Lululemon slashed its 2026 revenue forecast to $10.35 billion to $10.5 billion, down 5% to 7% from prior expectations Goderich Signal Star. This significantly lower guidance reflects management's concern that sales pressure will persist through the rest of the year. The range represents one of the weakest outlooks the company has issued recently.
The company is now planning for continued softness rather than a quick recovery County Market. This conservative stance suggests executives see structural challenges ahead, not just temporary demand weakness.
Management's Strategy to Reignite Growth
Frank outlined three key priorities to accelerate growth: strengthening product offerings, increasing marketing investments, and managing expenses tightly Northern News. The focus on product development suggests Lululemon believes better designs and innovation can win back customers. Increased marketing spend aims to rebuild brand momentum amid the sales slump.
Store expansion continues at a measured pace. Lululemon added nine net new company-operated locations in Q2, ending with 825 total stores Cochrane Times Post. This slower growth rate reflects the company's shift toward disciplined expansion rather than rapid store rollout during a weak sales environment.
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