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LULULululemon Athletica Inc.

Earnings Release

Lululemon Athletica Inc.'s latest earnings press release, filed Sep 3, 2026, scored line by line for tone, guidance and what changed since the prior release.

Guidance lowered38 lines scoredFiled Sep 3, 2026SEC 8-K · Exhibit 99
Release Tone
39
CAUTIOUS
GuidanceGuidance loweredWhat this release does to the company's outlook
Tone change▼ 17.0pointsvs the prior release (Jun 4, 2026)
Hedging language0.84per 100 words▼ 0.26 vs prior
New this quarter13of 38 linesWording that was not in the prior release

The lines that matter most

Ranked by how material, how strongly worded and how new each sentence is.

  1. 1

    For 2026, the Company now expects net revenue to be in the range of $10.350 billion to $10.500 billion, representing a decline of 5% to 7%.

    Guidance loweredNegative tone
  2. 2

    – This includes $134.5 million of tariff refunds (1) which increased gross margin by 560 basis points.

    New this quarter
  3. 3

    – The tariff refunds (1) of $134.5 million increased operating margin by 560 basis points.

    New this quarter
  4. 4

    These amounts were recognized as a reduction of cost of goods sold and an increase to other income, respectively, and increased diluted earnings per share by $0.86.

    New this quarter
  5. 5

    Net revenue decreased 4% to $2.4 billion, or decreased 5% on a constant dollar basis.

    Negative tone
  6. 6

    Revenue decreased 4% to $2.4 billion, or decreased 5% on a constant dollar basis

    Negative tone
  7. 7

    Gross profit decreased 1% to $1.5 billion and gross margin increased 200 basis points to 60.5%.

    Negative tone
  8. 8

    For the third quarter of 2026, the Company expects net revenue to be in the range of $2.290 billion to $2.320 billion, representing a decline of 10% to 11%.

    Negative tone

Release by release

Tone and guidance for the last 2 earnings releases.

  1. Sep 3, 2026Guidance lowered38.5-17.0
  2. Jun 4, 2026Guidance lowered55.6

Bar length: tone on a 33–61 scale.

The release, annotated

1Highlight rankPositive toneNeutralNegative toneDimmed text: low materiality
Results
6Revenue decreased 4% to $2.4 billion, or decreased 5% on a constant dollar basis
Comparable sales decreased 9%, or 10% on a constant dollar basis
Diluted EPS of $2.92 (1)
Management commentary
Meghan Frank, Interim Co-CEO and Chief Financial Officer, stated: "While we continue to navigate some challenging dynamics, we are taking a prudent approach with our revised full-year outlook.Guidance lowered
Our teams remain focused on accelerating growth by strengthening our product offerings, increasing our marketing investments, and maintaining disciplined expense management.
Looking ahead, we have confidence in the strength of the lululemon brand, the deep connection we have with our guests and ambassadors, and the significant opportunities we see to drive long-term growth."
Corporate events
André Maestrini, Interim Co-CEO, President, and Chief Commercial Officer, stated: "We remain confident in our ability to take the right steps to strengthen our performance and deliver sustainable growth over time.
I would like to thank our teams around the world for their focused efforts and continued commitment to lululemon.
We look forward to welcoming our incoming CEO, Heidi O'Neill, next week as we begin an exciting new chapter for the company."
Results
For the second quarter of 2026, compared to the second quarter of 2025:
5Net revenue decreased 4% to $2.4 billion, or decreased 5% on a constant dollar basis.
– Americas net revenue decreased 8%.
– International net revenue increased 4%, or 2% on a constant dollar basis.
Comparable sales decreased 9%, or 10% on a constant dollar basis.
– Americas comparable sales decreased 12%.
– International comparable sales decreased 3%, or 6% on a constant dollar basis.
7Gross profit decreased 1% to $1.5 billion and gross margin increased 200 basis points to 60.5%.
2– This includes $134.5 million of tariff refunds (1) which increased gross margin by 560 basis points.
Income from operations decreased 13% to $453.7 million and operating margin decreased 190 basis points to 18.8%.
3– The tariff refunds (1) of $134.5 million increased operating margin by 560 basis points.
The effective income tax rate for the second quarter of 2026 was 29.6%, compared to 30.5% for the second quarter of 2025.
Diluted earnings per share were $2.92 compared to $3.10 in the second quarter of 2025.
– This includes $0.86 per share related to tariff refunds and associated interest (1) , net of tax.
Capital return
The Company repurchased 2.7 million of its shares for a cost of $330.0 million.
Results
The Company opened nine net new company-operated stores during the second quarter, ending with 825 stores.
(1) During the second quarter of 2026, the Company received International Emergency Economic Powers Act ("IEEPA") tariff refunds of $134.5 million plus associated interest of $4.1 million.
4These amounts were recognized as a reduction of cost of goods sold and an increase to other income, respectively, and increased diluted earnings per share by $0.86.
The Company ended the second quarter of 2026 with $1.4 billion in cash and cash equivalents and it had $593.7 million of available capacity under its committed revolving credit facility.
Inventories at the end of the second quarter of 2026 decreased by 1% to $1.7 billion compared to the end of the second quarter of 2025.
On a unit basis, inventories decreased 7%.
Outlook
8For the third quarter of 2026, the Company expects net revenue to be in the range of $2.290 billion to $2.320 billion, representing a decline of 10% to 11%.
Diluted earnings per share are expected to be in the range of $0.93 to $0.98 for the quarter.
This assumes a tax rate of approximately 30%.
1For 2026, the Company now expects net revenue to be in the range of $10.350 billion to $10.500 billion, representing a decline of 5% to 7%.Guidance lowered
Diluted earnings per share are now expected to be in the range of $9.48 to $9.73 for the year.
This assumes a tax rate of approximately 30%.
The 2026 outlook includes $0.86 per share from tariff refunds and associated interest, net of tax recognized in the second quarter of 2026, but does not reflect any further potential tariff refunds.
Capital return
The outlook does not reflect any future repurchases of the Company's shares.
46 boilerplate lines (safe-harbor disclaimer, contacts, call details) are set aside.

How this is scored

  • Source: the press release Lululemon Athletica Inc. filed with the SEC as Exhibit 99 to Form 8-K (Item 2.02). Financial statements and boilerplate are set aside.
  • Tone: a financial sentiment model scores each sentence 0 to 100; the release score weights sentences by how material they are.
  • Materiality and guidance: a classifier judges whether each sentence is specific information, and what the release does to the outlook.
  • New this quarter: wording that does not appear in the prior release.
  • Hedging: uncertainty words (may, could, approximately, headwinds and similar) per 100 words of narrative.

These scores describe the release's language. They are not a forecast or a recommendation. Read the original filing

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