Lululemon cuts 2026 full-year revenue outlook after second-quarter miss

Lululemon Athletica (NASDAQ: LULU ) reported second-quarter financial results on Thursday.

The transcript from the company's second-quarter earnings call has been provided below.

APIs provide real-time access to earnings call transcripts and financial data.

Visit to learn more.

Access the full call at Summary Lululemon Athletica Inc. reported Q2 revenue of $2.4 billion, a decline of 4% from the previous year, with North America revenue down 8% and China Mainland revenue up 4%.

The company lowered its full-year guidance, expecting revenue between $10.35 billion and $10.5 billion, reflecting a 5% to 7% decline from 2025, due to softer sales trends and inconsistent product launch performances.

Strategic initiatives include focusing on product innovation, increasing marketing investments, and optimizing store operations while managing costs through efficiency improvements and expense reductions.

Management highlighted challenges in brand sentiment and traffic, particularly in North America and China, and is focused on improving product performance and guest experience.

Despite current challenges, Lululemon remains confident in its brand strength and plans to continue investing in growth opportunities, with a new CEO joining to evaluate and enhance strategies.

Full Transcript OPERATOR Thank you for standing by.

This is the conference operator.

Welcome to the Lululemon Athletica Inc. second quarter 2026 earnings conference call.

As a reminder, all participants are in listen-only mode and the conference is being recorded.

After the presentation there will be an opportunity to ask questions.

Analysts who wish to join the question queue may press star then one on the telephone keypad.

Should you need assistance during the conference call, you may reach an operator by pressing star then zero.

I would now like to turn the conference over to Howard Toobin, Vice President, Investor Relations for Lululemon Athletica.

Please go ahead.

Howard Toobin, Vice President, Investor Relations Thank you and good afternoon.

Welcome to Lululemon's second quarter earnings conference call.

Joining me today are Meghan Frank, Interim Co-CEO and CFO, and Andre Maestrini, Interim Co-CEO, President and Chief Commercial Officer.

Before we get started, I'd like to take this opportunity to remind you that our remarks today will include forward-looking statements reflecting management's current forecast of certain aspects of Lululemon's future.

These statements are based on current information, which we have assessed, but which by its nature is dynamic and subject to rapid and even abrupt changes.

Actual results may differ materially from those contained in or implied by these forward-looking statements due to risks and uncertainties associated with our business, including those we have disclosed in our most recent filings with the SEC, including our annual report on Form 10-K and our quarterly reports on Form 10-Q.

Any forward-looking statements that we make on this call are based on assumptions as of today, and we expressly disclaim any obligation or undertaking to update or revise any of these statements as a result of new information or future events.

During this call, we will present both GAAP and non-GAAP financial measures.

A reconciliation of GAAP to non-GAAP measures is included in our quarterly report on Form 10-Q and in our earnings press release.

In addition, the comparable sales metrics given on today's call are on a constant dollar basis.

The press release and accompanying quarterly report on Form 10-Q are available under the Investors section of our website at On today's call, Meghan and Andre will begin by discussing recent business developments across our regions and the plans and strategies we're implementing to drive improved performance.

Meghan will then discuss our detailed Q2 financials, the impact recent trends are anticipated to have on our performance for the remainder of the year, and our revised guidance outlook, and then the team will be happy to take your questions.

Before I turn the call over to Meghan, I'd like to remind investors to visit our investor site where you'll find a summary of our key financial and operating statistics for the second quarter as well as our quarterly infographic.

Meghan, over to you.

Meghan Frank, Interim Co-CEO and CFO Thanks, Howard.

Welcome everyone and thank you for joining us.

I want to start the call by taking you through our Q2 results, what we're seeing in the business today, and how this is informing our decision to lower our guidance for the full year.

Then Andre and I will spend most of our time discussing North America and China Mainland, what's happened since our last earnings call, and the actions we are taking across these markets to improve the trajectory of the business.