Lululemon shares plunge 17% after Q2 results and outlook cut
Lululemon (LULU) shares fell about 17% Friday after second-quarter results. Revenue missed consensus at $2.42B, Q3 revenue guidance was $2.29B–$2.32B, and full-year revenue and EPS outlook were lowered.
Shares of Lululemon Athletica Inc. (NASDAQ: LULU ) plunged about 17% Friday after the athletic apparel maker reported second-quarter results, prompting sharp reactions from investors and analysts.
Top Investors Take Aim at Lululemon “Lulu is in shambles,” said Ross Gerber, co-founder and CEO at Gerber Kawasaki, in a post on X.
Talk about a bad day.
Lulu is in shambles. $LULU — Ross Gerber (@GerberKawasaki) September 4, 2026 Meanwhile, ‘The Big Short’ investor Michael Burry called Lululemon a “trickster” in his portfolio. “Today, Lululemon (LULU) is the trickster in my portfolio.
This time the trickster is my largest position, and it does seem determined to take me where mermaids fear to tread,” said Burry in a post on Substack on Thursday.
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.
Lululemon also faced a wave of price-target cuts from Wall Street firms, with Baird lowering its target to $115 from $140, UBS to $106 from $120, Wells Fargo to $95 from $105, and Morgan Stanley to $83 from $93.
Read Also: Lululemon’s Margin Problem Could Spell Trouble for These ETFs Underwhelming Q2 and Weaker Outlook Send Shares Crashing Lululemon reported second-quarter revenue of $2.42 billion, missing the consensus estimate of $2.46 billion, according to Pro.
For the third quarter, Lululemon expects revenue of $2.29 billion to $2.32 billion versus estimates of $2.53 billion.
The athletic and leisure apparel company lowered its full-year revenue outlook to be between $10.35 billion and $10.50 billion, compared to a prior forecast range of $11 billion to $11.15 billion, versus estimates of $11.04 billion.
Lululemon also lowered its full-year earnings guidance from $10.95 to $11.15 per share to $9.48 to $9.73 per share, versus estimates of $10.96 per share.
Price Action: Lululemon closed at $100.61 on Friday, down 17.38% for the day.
Year-to-date, shares of the company have tumbled about 52%, while in the past five years the stock has slumped nearly 74%.
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