Lululemon cuts full-year outlook after second-quarter miss
Lululemon reported second-quarter revenue of $2.42 billion, below the $2.46 billion consensus, and lowered full-year revenue guidance to $10.35 billion-$10.50 billion from $11 billion-$11.15 billion.
‘The Big Short’ investor Michael Burry ‘s largest holding, Lululemon Athletica Inc. (NASDAQ: LULU ), tumbled more than 18% in after-hours trading on Thursday following another disappointing quarterly results. ‘The Trickster in My Portfolio’ “Today, lululemon is the trickster in my portfolio,” Burry said in a post on Substack on Thursday. “This time the trickster is my largest position, and it does seem determined to take me where mermaids fear to tread.” According to market commentator Sam Badawi, Burry plans to buy aggressively below $100 and sees a potential private equity takeover as a long-term outcome for the stock.
Oh man… Michael Burry says $LULU is his largest position and plans to buy aggressively below $100.
He also sees a potential private equity takeover as a long-term outcome. pic.twitter.com/1iHzNGbGW6 — Sam Badawi (@Sam_Badawi) September 3, 2026 Shay Boloor, Chief Market Strategist at Futurum Equities, joked, “Someone check on Burry because $LULU is falling off a cliff.” Someone check on Burry because $LULU is falling off a cliff 😳 pic.twitter.com/41OLlO9sOP — Shay Boloor (@StockSavvyShay) September 3, 2026 Analyst Nicholas Mugalli said Burry was “watching his largest $LULU holding get obliterated to oblivion” and noted that Wall Street has broadly abandoned its “Buy Ratings” on the stock and it is among the worst performers in sportswear this year.
If you’re a Lululemon investor, Wall Street analysts have all dumped their $LULU "Buy Ratings" as the company remains a crowded short and one of the worst names in sportswear this yr (-42% YTD) where bears have been emboldened by the negative laterals from the sportswear industry… pic.twitter.com/7xHjpVHDt1 — Nicholas Mugalli (@RealNickMugalli) September 3, 2026 Read Also: JD Vance Says Trump 'Cares a Lot' About Interest Rates Because He Wants Americans to Afford a Home: 'Would Be Nice' to Have Fed's Help The Selloff Was Predictable The Future Fund’s Gary Black said the stock’s slide was predictable, citing “poor merchandising, product strategy, and leadership,” including a four-month gap between the company’s announcement of new CEO Heidi O’Neil in April and her actual start date of Sept.
8. “A company should not wait 4 months between announcing a new CEO and when that new CEO takes the reins from a departing CEO,” Black added on X. $LULU -19% AH after announcing another dismal quarter today after the close.
I had previously warned investors to stay clear of LULU given poor merchandising, product strategy, and leadership.
A company should not wait 4 months between announcing a new CEO and when that new CEO… pic.twitter.com/ce7IJvbKYq — Gary Black (@garyblack00) September 3, 2026 Weakness in China Weighed on the Quarter Interim Co-CEO André Maestrini told analysts during the company’s earnings call that negative commentary in Chinese media and on social platforms, which intensified after a company event held at the Great Wall of China, hurt store traffic and sales momentum in the region.
He also cited Tmall’s decision not to repeat its 618 Shopping Festival promotion as it had the previous year.
China revenue rose just 4% on a reported basis and fell 2% on a constant-currency basis, well below the company’s expectations, though Maestrini said the team remains “confident” in the brand’s long-term opportunity in the market.
The Numbers Behind the Selloff Lululemon reported second-quarter revenue of $2.42 billion, missing the $2.46 billion consensus estimate, according to Pro.
The company slashed its full-year revenue outlook to $10.35 billion-$10.50 billion from $11 billion-$11.15 billion, and cut full-year EPS guidance to $9.48-$9.73 from $10.95-$11.15.
Price Action: The shares closed 1.42% higher on Thursday at $121.77, then plunged 18.17% to $99.65 in extended trading.
Year-to-date, the stock has slumped 42.24% and 38.66% over the past year. edge rankings indicate Lululemon’s stock has a Momentum score in the 5th percentile and a Growth score in the 94th percentile.
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