Lululemon Stock Falls 18% as Earnings Miss Wall Street Estimates

Lululemon earnings for the second fiscal quarter came in well short of what Wall Street had been expecting, and the Lululemon stock price sank as much as 18.17% in after hours trading, one of the sharper single day drops the retailer has had in a while. Net revenue slipped 4% to $2.42 billion, missing the $2.46 billion analysts were looking for, and comparable sales dropped 9%. The Lululemon earnings report also came with a weaker Lululemon earnings forecast for the rest of the year, and shares fell to $99.65 after hours, a drop of $22.12, well below the stock’s 52 week low of $104.44. It’s also the latest in a run of Lululemon stock falls that have dogged the company through most of 2026.

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Lululemon Earnings Miss Sends Stock Lower as Outlook Slumps

This Lululemon earnings report pinned a lot of the blame on weak demand in North America, and on an inconsistent response to new product launches too. Comparable sales fell 9%, or 10% on a constant dollar basis, with Americas comparable sales down 12% and international comparable sales down 3%, or 6% in constant currency. Interim Co-CEO and CFO Meghan Frank also pointed to a bigger than expected slowdown in categories such as leggings, plus some negative social media commentary that weighed on the quarter.

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