lululemon heads into fiscal Q2 2026 earnings after cutting EPS and revenue guidance
lululemon athletica has already cut FY2026 revenue and EPS guidance and flagged a ~410 bp Q2 gross margin decline, with U.S. revenue down 4% in Q1. The guidance reset and prior 8.6% post-earnings drop raise downside sensitivity into the upcoming Q2 print, reinforcing pressure on consumer discretionary sentiment and broader U.S. equities where apparel demand and tariff-driven margin risk are key swing factors.
AI Insight · NCSISP5002USD/USDTAI Insight
▼ Bearish
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lululemon athletica (LULU) is set to report fiscal 2026 Q2 results after lowering its outlook. The company now expects Q2 EPS of $1.76–1.81, below the analyst consensus estimate, and forecasts a 410-basis-point decline in Q2 gross margin. It also cut its full-year revenue view from 2%–4% growth to flat to down 1% and reported a 4% year-over-year drop in U.S. Q1 revenue. Shares fell 8.6% in the session after the Q1 report.