Shoppers walk past a Lululemon store at a shopping mall on June 21, 2026, in Hong Kong, China.<\/p>\n
Cheng Xin | Getty Images<\/p>\n
Shares of Lululemon<\/a> plunged 15% on Thursday after the retailer reported another quarter of disappointing results and cut its outlook for the year.<\/p>\n The company reported a 4% decline in revenue and a comparable sales decrease of 9% for the second fiscal quarter. It was only the latest rough quarter for the apparel retailer, after it reduced its guidance in the previous quarter. <\/p>\n Interim CEO Meghan Frank said on a call with analysts that the company experienced “negative commentary” on social media that affected its performance in the second quarter. The company also experienced a “greater-than-expected” slowdown in some of its core categories, including leggings.<\/p>\n “While we are seeing good guest reaction to our activations and some of our newer styles, the overall response to our product launches remains inconsistent, and we’ve continued to see pressure on the brand in both of our largest markets,” Frank said.<\/p>\n For the third fiscal quarter, Lululemon said it expects revenue to be between $2.29 billion and $2.32 billion, a decline of roughly 10% to 11% from the prior year. It anticipates earnings of 93 cents to 98 cents per share for the period. <\/p>\n For the full year, Lululemon said it expects net revenue between $10.35 billion and $10.5 billion, representing a 5% to 7% decline, and down from its previous guidance of $11 billion to $11.15 billion. It anticipates earnings will be between $9.48 and $9.73 per share, compared to previous guidance of $10.95 to $11.15 per share. That new outlook includes a boost from tariff refunds, Lululemon added.<\/p>\n Here’s how Lululemon performed in its second fiscal quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:<\/p>\n For the quarter, Lululemon reported net income of $329.2 million, or $2.92 per share, compared to $370.9 million, or $3.10 per share, the year prior.<\/p>\n The company said its gross profit decreased 1% to $1.5 billion while its gross margin grew 5.6%, boosted by a tariff refund of $134.5 million. <\/p>\n Frank said on the Thursday call that Lululemon management is focusing on introducing new styles and tightening inventory to return to sales growth.<\/p>\n “We know there is much more work to be done,” Frank said. “Our management team leaders and employees are focused on serving our guests and executing initiatives to drive an inflection in our business.”<\/p>\n Lululemon has been struggling to regain strength and relevancy<\/a> among its customers even as it faces criticism from founder Chip Wilson. The company’s new CEO<\/a>, Heidi O’Neill, will take the reins of the retailer next week.<\/p>\n\n