lululemon Q2 sales fall 4%, lowers 2026 outlook
LULU posted lower Q2 2026 sales and EPS, while one-time tariff refunds lifted margins and guidance now calls for revenue and earnings declines for the year.
Rhea-AI Filing Summary
lululemon athletica inc. (LULU) reported weaker second quarter fiscal 2026 results, with revenue and earnings down year over year but margins temporarily boosted by one-time tariff refunds. Net revenue for the quarter ended August 2, 2026 was $2.42 billion, a 4% decline versus 2025, driven by a 9% decrease in comparable sales, including a 12% decline in the Americas and a 3% decline internationally. International net revenue still grew 4% overall.
Gross profit fell 1% to $1.46 billion, but gross margin improved to 60.5%, up 200 basis points, primarily due to $134.5 million of IEEPA tariff refunds that added 560 basis points to margin and $0.86 to diluted EPS. Income from operations declined 13% to $453.7 million and operating margin fell to 18.8%. Net income was $329.2 million and diluted EPS was $2.92, down from $3.10.
The company ended the quarter with $1.4 billion in cash and cash equivalents, inventories of $1.7 billion (down 1%, with units down 7%), and repurchased 2.7 million shares for $330.0 million. For the third quarter of 2026, lululemon expects net revenue of $2.29–$2.32 billion (a decline of 10–11%) and diluted EPS of $0.93–$0.98. For full-year 2026, it now expects net revenue of $10.35–$10.50 billion (down 5–7%) and diluted EPS of $9.48–$9.73, including the $0.86 per share benefit from tariff refunds.
Positive
- Gross margin expanded to 60.5%, up 200 basis points year over year, aided by $134.5 million of tariff refunds that added 560 basis points.
- International net revenue grew 4% (2% on a constant dollar basis), partially offsetting weaker performance in the Americas.
- Inventories improved, declining 1% in dollar terms and 7% on a unit basis, which may reduce markdown risk.
- The company maintained a strong liquidity position with $1.4 billion in cash and $593.7 million of available capacity under its revolving credit facility.
Negative
- Net revenue declined 4% to $2.42 billion, with comparable sales down 9% (10% on a constant dollar basis), reflecting softer demand.
- Diluted EPS fell to $2.92 from $3.10, even including a $0.86 per-share benefit from tariff refunds and interest.
- Operating margin decreased to 18.8%, down 190 basis points year over year despite the tariff refund benefit.
- Updated outlook is weaker: full-year 2026 net revenue is expected to decline 5–7% and diluted EPS to fall to $9.48–$9.73.
- Third quarter 2026 guidance calls for net revenue of $2.29–$2.32 billion, a projected 10–11% decline, and diluted EPS of $0.93–$0.98.
Filing Explained
At August 2, lululemon reported 1,389,737 thousand dollars of cash and 593.7 million dollars of committed revolving capacity; guidance excludes future repurchases.
For the first two quarters, operating cash flow was
lululemon also reported
The company opened nine net new company-operated stores during the quarter, bringing its total to 825.
The 2026 outlook includes the
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Net revenue Q2 2026: $2,415.6 million
Diluted EPS Q2 2026: $2.92
Gross margin Q2 2026: 60.5%
+5 more
8 metrics
Net revenue Q2 2026
$2,415.6 million
Second quarter 2026, down 4% from $2,525.2 million in 2025
Diluted EPS Q2 2026
$2.92
Second quarter 2026, compared to $3.10 in second quarter 2025
Gross margin Q2 2026
60.5%
Second quarter 2026, up from 58.5% a year earlier
Income from operations Q2 2026
$453.7 million
Second quarter 2026, down from $523.8 million in 2025
Tariff refunds
$134.5 million
IEEPA tariff refunds in Q2 2026 that added $0.86 to diluted EPS
Cash and cash equivalents
$1,389.7 million
Balance at end of second quarter 2026
Inventories
$1,711.5 million
End of second quarter 2026, down 1% year over year; units down 7%
Full-year 2026 net revenue outlook
$10,350–$10,500 million
Guidance for 2026 net revenue, representing a 5–7% decline
Key Terms
constant dollar basis, comparable sales, International Emergency Economic Powers Act ("IEEPA"), operating margin, +2 more
6 terms
constant dollar basis financial
"decreased 5% on a constant dollar basis"
Constant dollar basis means showing financial figures after removing the effect of inflation so all amounts are expressed in the value of money from a single base year. It lets investors compare revenue, profit or costs over time using the same “yardstick,” so growth reflects real business performance rather than rising prices; this helps spot genuine trends and make more reliable investment decisions.
comparable sales financial
"Comparable sales decreased 9%, or 10% on a constant dollar basis"
"Comparable sales" are the total sales from stores or products that have been open for a certain period, usually the same time last year or last quarter. They help show whether a business is growing by comparing similar locations or products over time, much like checking if your favorite store's sales are going up compared to previous years.
International Emergency Economic Powers Act ("IEEPA") regulatory
"received International Emergency Economic Powers Act ("IEEPA") tariff refunds"
A U.S. law that gives the government broad authority to impose economic controls—such as trade bans, asset freezes, and restrictions on payments—against foreign threats to national security, foreign policy, or the economy. Think of it like an emergency switch the government can flip to cut or limit financial and commercial links with certain countries, businesses, or individuals; investors care because those actions can suddenly block sales, freeze revenue streams, and sharply alter a company’s exposure to international markets.
operating margin financial
"operating margin decreased 190 basis points to 18.8%"
Operating margin shows how much profit a company makes from its core business activities after paying for costs like wages and materials. It’s useful because it tells you how efficiently a company is running—higher margins mean it keeps more money from each dollar of sales, which can indicate better management or stronger products.
revolving credit facility financial
"had $593.7 million of available capacity under its committed revolving credit facility"
A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.
non-GAAP financial measures financial
"We report certain financial metrics on a constant dollar basis, which is a non-GAAP financial measure"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Earnings Snapshot
Net revenue: $2,415.6 million · Guidance included
second quarter of 2026
Net revenue
$2,415.6 million
-4% vs second quarter 2025; -5% on a constant dollar basis
Net income
$329.2 million
down from $370.9 million in second quarter 2025
Diluted EPS
$2.92
down from $3.10 in second quarter 2025; includes $0.86 from tariff refunds and interest
Gross margin
60.5%
up from 58.5% in second quarter 2025; 560 bps benefit from tariff refunds
Operating margin
18.8%
down 190 basis points from 20.7% in second quarter 2025
Comparable sales
-9%
-10% on a constant dollar basis; Americas -12%, total international -3%
Q3 2026 guidance
Net revenue $2,290–$2,320 million; diluted EPS $0.93–$0.98
net revenue decline of 10–11% vs prior year; assumes ~30% tax rate
Full-year 2026 guidance
Net revenue $10,350–$10,500 million; diluted EPS $9.48–$9.73
net revenue decline of 5–7%; EPS includes $0.86 from tariff refunds
Guidance
Management expects net revenue declines of 10–11% in Q3 2026 and 5–7% for full-year 2026, with diluted EPS guidance of $0.93–$0.98 for Q3 and $9.48–$9.73 for the year, assuming an approximately 30% tax rate and including the recognized tariff refund benefit.
FAQ
How did LULU’s Q2 2026 revenue perform compared to Q2 2025?
Net revenue in Q2 2026 was $2.415 billion, a 4% decrease from $2.525 billion in Q2 2025, and down 5% on a constant dollar basis. Americas net revenue decreased 8%, while international net revenue increased 4%.
How did comparable sales trend for LULU in Q2 2026?
Comparable sales decreased 9% in Q2 2026, or 10% on a constant dollar basis. In the Americas, comparable sales declined 12%, while total international comparable sales declined 3%, or 6% on a constant dollar basis.
What is lululemon’s Q3 2026 outlook for revenue and EPS?
For Q3 2026, lululemon expects net revenue of $2.290–$2.320 billion, representing a 10–11% decline, and diluted earnings per share of $0.93–$0.98. The outlook assumes an income tax rate of approximately 30%.
What full-year 2026 guidance did LULU provide?
For 2026, lululemon now expects net revenue of $10.350–$10.500 billion, a 5–7% decline, and diluted EPS of $9.48–$9.73. This EPS range includes $0.86 per share from tariff refunds and associated interest recognized in Q2 2026.
How strong is lululemon’s (LULU) balance sheet at the end of Q2 2026?
At the end of Q2 2026, lululemon held $1.389 billion in cash and cash equivalents, inventories of $1.711 billion, and had $593.7 million of available capacity under its committed revolving credit facility, with stockholders’ equity of $4.791 billion.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of principal executive offices, including Zip Code)
Registrant's telephone number, including area code: (604 ) 732-6124
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02. | Results of Operations and Financial Condition. | ||||
On September 3, 2026, lululemon athletica inc. (the "Company") issued a press release announcing its financial results for the second quarter ended August 2, 2026 and certain other information. A copy of the Company's press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. As previously announced, the Company has scheduled a conference call for 4:30 p.m. Eastern time on September 3, 2026 to discuss its financial results.
| Item 9.01. | Financial Statements and Exhibits. | ||||
(d) Exhibits.
| Exhibit No. | Description | |||||||
| 99.1 | Press release issued on September 3, 2026. | |||||||
| 104 | Cover Page Interactive Data File (formatted in iXBRL) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| lululemon athletica inc. | |||||
| Dated: September 3, 2026 | /s/ MEGHAN FRANK | ||||
| Meghan Frank | |||||
| Interim Co-Chief Executive Officer and Chief Financial Officer | |||||
Exhibit 99.1
LULULEMON ATHLETICA INC. ANNOUNCES SECOND QUARTER FISCAL 2026 RESULTS
Revenue 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)
Vancouver, British Columbia – September 3, 2026 – lululemon athletica inc. (NASDAQ:LULU) today announced financial results for the second quarter of fiscal 2026, which ended on August 2, 2026.
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. 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."
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."
For the second quarter of 2026, compared to the second quarter of 2025:
•Net 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.
•Gross profit decreased 1% to $1.5 billion and gross margin increased 200 basis points to 60.5%.
–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%.
–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.
•The Company repurchased 2.7 million of its shares for a cost of $330.0 million.
•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. 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.
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Balance Sheet Highlights
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%.
2026 Outlook
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%. 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%.
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%. 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.
The outlook does not reflect any future repurchases of the Company's shares.
The guidance and outlook forward-looking statements made in this press release are based on management's expectations as of the date of this press release and do not incorporate future unknown impacts, including tariffs and macroeconomic trends. The Company undertakes no duty to update or to continue to provide information with respect to any forward-looking statements or risk factors, whether as a result of new information or future events or circumstances or otherwise. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of risks and uncertainties, including those stated below.
Conference Call Information
A conference call to discuss second quarter results is scheduled for today, September 3, 2026, at 4:30 p.m. Eastern time. Those interested in participating in the call are invited to dial 1-833-752-3550 or 1-647-846-8290, if calling internationally, approximately 10 minutes prior to the start of the call. A live webcast of the conference call will be available online at: https://corporate.lululemon.com/investors/news-and-events/events-and-presentations. A replay will be made available online approximately two hours following the live call for a period of 30 days.
About lululemon athletica inc.
lululemon athletica inc. (NASDAQ:LULU) is a technical athletic apparel, footwear, and accessories company for yoga, running, training, and most other activities, creating transformational products and experiences that build meaningful connections, unlocking greater possibility and wellbeing for all. Setting the bar in innovation of fabrics and functional designs, lululemon works with yogis and athletes in local communities around the world for continuous research and product feedback. For more information, visit lululemon.com.
Non-GAAP Financial Measures
We report certain financial metrics on a constant dollar basis, which is a non-GAAP financial measure.
A constant dollar basis assumes the average foreign currency exchange rates for the period remained constant with the average foreign currency exchange rates for the same period of the prior year. The Company provides constant dollar changes in its results to help investors understand the underlying performance of net revenue excluding the impact of changes in foreign currency exchange rates. Management uses constant currency metrics internally when reviewing and assessing financial performance.
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These non-GAAP financial measures are provided in addition to, and not a substitute for, the corresponding financial measures calculated in accordance with GAAP. For more information on these non-GAAP financial measures, please see the section captioned "Reconciliation of Non-GAAP Financial Measures" included in the accompanying financial tables, which includes more detail on the GAAP financial measure that is most directly comparable to each non-GAAP financial measure, and the related reconciliations between these financial measures. The Company's non-GAAP financial measures may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures reported by other companies.
Forward-Looking Statements:
This press release includes estimates, projections, statements relating to the Company's business plans, objectives, and expected operating results that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. In many cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "outlook," "believes," "intends," "estimates," "predicts," "potential" or the negative of these terms or other comparable terminology. These forward-looking statements also include the Company's guidance and outlook statements. These statements are based on management's current expectations but they involve a number of risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in the forward-looking statements as a result of risks and uncertainties, which include, without limitation: the Company's ability to maintain its brand value and reputation; its highly competitive market and increasing competition; its ability to anticipate consumer preferences and successfully develop and introduce new, innovative and differentiated products; the acceptability of its products to guests; increasing costs and decreasing selling prices; its ability to accurately forecast guest demand for its products; its ability to expand in light of its limited operating experience and limited brand recognition in new international markets and new product categories; its ability to attract, manage, and retain highly qualified individuals; its ability to manage its growth and the increased complexity of its business effectively; changes in consumer shopping preferences and shifts in distribution channels; its leasing of retail and distribution space; seasonality; changes to U.S. tariff and customs policy, including the elimination of the de minimis exemption; macroeconomic volatility, inflationary pressures, and shifts in consumer sentiment; global political and economic instability, including geopolitical conflicts and political polarization; trade restrictions, tariffs, and customs changes; its ability to comply with trade and other regulations; changes in tax laws, transfer pricing, or unanticipated tax liabilities; fluctuations in foreign currency exchange rates; global or regional public health crises; disruptions of its supply chain; its reliance on a relatively small number of vendors to supply and manufacture a significant portion of its products; suppliers or manufacturers not complying with its Vendor Code of Ethics or applicable laws; fluctuating costs of raw materials and the cost of producing its products; its ability to deliver its products to the market and to meet guest expectations if it has problems with its distribution system; its ability to safeguard against security breaches with respect to its technology systems; its compliance with privacy and data protection laws; any material disruption of its technology systems; its ability to have technology-based systems for its e-commerce business function effectively; imitation by its competitors; its ability to protect its intellectual property rights; conflicting trademarks and patents and the prevention of sale of certain products; actions by stockholders, activists, or consumers; its exposure to various types of litigation; climate change and related pressures; heightened scrutiny and legal risks from competing pressures regarding ESG; and other risks and uncertainties set out in filings made from time to time with the United States Securities and Exchange Commission and available at www.sec.gov, including, without limitation, its most recent reports on Form 10-K and Form 10-Q. You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements. The forward-looking statements made herein speak only as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances, except as may be required by law.
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Contacts:
Investor Contacts:
lululemon athletica inc.
Howard Tubin
1-604-732-6124
or
ICR, Inc.
Joseph Teklits
1-203-682-8200
Media Contact:
lululemon athletica inc.
Madi Wallace
1-604-732-6124
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lululemon athletica inc.
The fiscal year ending January 31, 2027 is referred to as "2026" and the fiscal year ended February 1, 2026 is referred to as "2025".
Condensed Consolidated Statements of Operations
Unaudited; Expressed in thousands, except per share amounts
Second Quarter | First Two Quarters | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Net revenue | $ | 2,415,631 | $ | 2,525,219 | $ | 4,887,234 | $ | 4,895,879 | ||||||||||||||||||
| Costs of goods sold | 953,753 | 1,048,017 | 2,086,538 | 2,035,551 | ||||||||||||||||||||||
| Gross profit | 1,461,878 | 1,477,202 | 2,800,696 | 2,860,328 | ||||||||||||||||||||||
| As a percentage of net revenue | 60.5% | 58.5% | 57.3% | 58.4% | ||||||||||||||||||||||
| Selling, general and administrative expenses | 1,006,332 | 951,658 | 2,066,320 | 1,894,529 | ||||||||||||||||||||||
| As a percentage of net revenue | 41.7% | 37.7% | 42.3% | 38.7% | ||||||||||||||||||||||
| Amortization of intangible assets | 1,893 | 1,730 | 3,777 | 3,360 | ||||||||||||||||||||||
| Income from operations | 453,653 | 523,814 | 730,599 | 962,439 | ||||||||||||||||||||||
| As a percentage of net revenue | 18.8% | 20.7% | 14.9% | 19.7% | ||||||||||||||||||||||
| Other income (expense), net | 13,698 | 9,737 | 22,829 | 21,523 | ||||||||||||||||||||||
| Income before income tax expense | 467,351 | 533,551 | 753,428 | 983,962 | ||||||||||||||||||||||
| Income tax expense | 138,128 | 162,646 | 229,157 | 298,485 | ||||||||||||||||||||||
| Net income | $ | 329,223 | $ | 370,905 | $ | 524,271 | $ | 685,477 | ||||||||||||||||||
| Basic earnings per share | $ | 2.92 | $ | 3.10 | $ | 4.59 | $ | 5.71 | ||||||||||||||||||
| Diluted earnings per share | $ | 2.92 | $ | 3.10 | $ | 4.59 | $ | 5.70 | ||||||||||||||||||
| Basic weighted-average shares outstanding | 112,898 | 119,600 | 114,156 | 120,116 | ||||||||||||||||||||||
| Diluted weighted-average shares outstanding | 112,919 | 119,680 | 114,201 | 120,262 | ||||||||||||||||||||||
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lululemon athletica inc.
Condensed Consolidated Balance Sheets
Unaudited; Expressed in thousands
| August 2, 2026 | February 1, 2026 | August 3, 2025 | ||||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Current assets | ||||||||||||||||||||
| Cash and cash equivalents | $ | 1,389,737 | $ | 1,807,202 | $ | 1,155,794 | ||||||||||||||
| Inventories | 1,711,450 | 1,700,753 | 1,722,570 | |||||||||||||||||
| Prepaid and receivable income taxes | 479,948 | 352,469 | 323,227 | |||||||||||||||||
| Other current assets | 364,452 | 402,277 | 327,137 | |||||||||||||||||
| Total current assets | 3,945,587 | 4,262,701 | 3,528,728 | |||||||||||||||||
| Property and equipment, net | 2,046,363 | 2,033,720 | 1,917,361 | |||||||||||||||||
| Right-of-use lease assets | 1,947,077 | 1,630,181 | 1,605,009 | |||||||||||||||||
| Goodwill and intangible assets, net | 188,370 | 191,194 | 182,215 | |||||||||||||||||
| Deferred income taxes and other non-current assets | 357,181 | 338,947 | 290,126 | |||||||||||||||||
| Total assets | $ | 8,484,578 | $ | 8,456,743 | $ | 7,523,439 | ||||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||
| Accounts payable | $ | 346,717 | $ | 331,421 | $ | 373,333 | ||||||||||||||
| Accrued liabilities and other | 584,912 | 662,982 | 423,933 | |||||||||||||||||
| Accrued compensation and related expenses | 122,747 | 187,887 | 148,895 | |||||||||||||||||
| Current lease liabilities | 366,649 | 298,724 | 297,919 | |||||||||||||||||
| Current income taxes payable | 67,375 | 43,948 | 26,746 | |||||||||||||||||
| Unredeemed gift card liability | 277,318 | 316,632 | 252,334 | |||||||||||||||||
| Other current liabilities | 35,933 | 45,954 | 34,186 | |||||||||||||||||
| Total current liabilities | 1,801,651 | 1,887,548 | 1,557,346 | |||||||||||||||||
| Non-current lease liabilities | 1,774,478 | 1,499,717 | 1,464,799 | |||||||||||||||||
| Deferred income tax liability | 56,987 | 52,278 | 62,400 | |||||||||||||||||
| Other non-current liabilities | 60,288 | 55,360 | 51,615 | |||||||||||||||||
| Stockholders' equity | 4,791,174 | 4,961,840 | 4,387,279 | |||||||||||||||||
| Total liabilities and stockholders' equity | $ | 8,484,578 | $ | 8,456,743 | $ | 7,523,439 | ||||||||||||||
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lululemon athletica inc.
Condensed Consolidated Statements of Cash Flows
Unaudited; Expressed in thousands
First Two Quarters | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Cash flows from operating activities | ||||||||||||||
| Net income | $ | 524,271 | $ | 685,477 | ||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities | 65,007 | (475,755) | ||||||||||||
| Net cash provided by operating activities | 589,278 | 209,722 | ||||||||||||
| Net cash used in investing activities | (281,802) | (319,960) | ||||||||||||
| Net cash used in financing activities | (712,225) | (744,823) | ||||||||||||
| Effect of foreign currency exchange rate changes on cash and cash equivalents | (12,716) | 26,519 | ||||||||||||
| Decrease in cash and cash equivalents | (417,465) | (828,542) | ||||||||||||
| Cash and cash equivalents, beginning of period | 1,807,202 | 1,984,336 | ||||||||||||
| Cash and cash equivalents, end of period | $ | 1,389,737 | $ | 1,155,794 | ||||||||||
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lululemon athletica inc.
Reconciliation of Non-GAAP Financial Measures
Unaudited
Constant dollar changes
The below changes show the change compared to the corresponding period in the prior year.
Second Quarter 2026 | ||||||||||||||||||||
| Net Revenue | Change | Foreign exchange | Change in constant dollars | |||||||||||||||||
| United States | (8) | % | — | % | (8) | % | ||||||||||||||
| Canada | (11) | 2 | (9) | |||||||||||||||||
| Americas | (8) | — | (8) | |||||||||||||||||
| China Mainland | 4 | (6) | (2) | |||||||||||||||||
| Rest of World | 5 | 1 | 6 | |||||||||||||||||
| Total international | 4 | (2) | 2 | |||||||||||||||||
| Total | (4) | % | (1) | % | (5) | % | ||||||||||||||
Second Quarter 2026 | ||||||||||||||||||||
Comparable Sales(1) | Change | Foreign exchange | Change in constant dollars | |||||||||||||||||
| Americas | (12) | % | — | % | (12) | % | ||||||||||||||
| China Mainland | (2) | (6) | (8) | |||||||||||||||||
| Rest of World | (4) | 1 | (3) | |||||||||||||||||
| Total international | (3) | (3) | (6) | |||||||||||||||||
| Total | (9) | % | (1) | % | (10) | % | ||||||||||||||
(1)Comparable sales includes comparable company-operated store and e-commerce net revenue. Comparable company-operated stores have been open for at least 12 full fiscal months, or open for at least 12 full fiscal months after being significantly expanded. Comparable company-operated stores exclude stores which have been temporarily relocated for renovations or have been temporarily closed.
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lululemon athletica inc.
Company-operated Store Count and Square Footage(1)
Square footage expressed in thousands
| Number of Stores Open at the Beginning of the Quarter | Number of Stores Opened During the Quarter | Number of Stores Closed During the Quarter | Number of Stores Open at the End of the Quarter | |||||||||||||||||||||||
3rd Quarter 2025 | 784 | 14 | 2 | 796 | ||||||||||||||||||||||
4th Quarter 2025 | 796 | 18 | 3 | 811 | ||||||||||||||||||||||
1st Quarter 2026 | 811 | 11 | 6 | 816 | ||||||||||||||||||||||
2nd Quarter 2026 | 816 | 11 | 2 | 825 | ||||||||||||||||||||||
| Total Gross Square Feet at the Beginning of the Quarter | Gross Square Feet Added During the Quarter(2) | Gross Square Feet Lost During the Quarter(2) | Total Gross Square Feet at the End of the Quarter | |||||||||||||||||||||||
3rd Quarter 2025 | 3,511 | 128 | 9 | 3,630 | ||||||||||||||||||||||
4th Quarter 2025 | 3,630 | 116 | 10 | 3,736 | ||||||||||||||||||||||
1st Quarter 2026 | 3,736 | 66 | 14 | 3,788 | ||||||||||||||||||||||
2nd Quarter 2026 | 3,788 | 100 | 8 | 3,880 | ||||||||||||||||||||||
(1)Company-operated store count and square footage summary excludes retail locations operated by third parties under license and supply arrangements.
(2)Gross square feet added/lost during the quarter includes net square foot additions for company-operated stores which have been renovated or relocated in the quarter.
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