Lululemon Athletica, the well-known Canadian sportswear brand, reported an 11.3% drop in its net income for the fiscal second quarter, leading to a decrease in its shares of up to 18% ahead of market opening.
During the second quarter, which ended on August 2, the company reported a net income of $329 million (€283 million), compared to the same period last year. Lululemon’s revenue was $2.415 billion (€2.077 billion), reflecting a 4.3% decline. Earnings per share were $2.92 (€2.51), down 5.8% from a year ago.
In this quarter, Lululemon executed buybacks of 2.7 million shares, representing a value of $330 million (€284 million). However, the company’s revised projections have raised concerns among investors, contributing to the decline in its shares.
The company estimates that revenue for the third quarter will be in the range of $2.290 to $2.320 billion (€1.970 to €2.000 billion), which would indicate a year-over-year decline of 10% to 11%. Additionally, earnings per share are expected to range between $0.93 and $0.98 (€0.80 and €0.84).
For fiscal year 2026, Lululemon has updated its revenue projections to between $10.350 and $10.500 billion (€8.900 and €9.035 billion), representing a reduction of 5% to 7% compared to the previous year. Lululemon’s shares experienced a significant drop, exceeding 18% in pre-market trading, with a price of $99 per share after closing at $121.
Co-CEO and Chief Financial Officer Meghan Frank commented: “While we continue to face some challenges, we are taking a prudent approach with our full-year forecast review. Our teams remain focused on accelerating growth by strengthening our product offering, increasing our marketing investments, and rigorous expense management. Looking ahead, we are confident in the strength of the Lululemon brand, the close relationship we maintain with our customers and ambassadors, and the significant opportunities we see to drive long-term growth”.
Source: www.infobae.com
