The magnitude of the guidance cut and margin compression is severe. With Americas comparable sales declining 5% and full-year revenue now expected to decline, the core North American business is deteriorating. Monitor the Q2 print for further deterioration in Americas trends and any tariff-related impacts. The stock is likely to trade down sharply on the miss and lowered outlook.
Price Chart
Executive Summary
Lululemon reported Q1 FY2026 revenue of $2.47B (+4% YoY) and diluted EPS of $1.69, a 35% decline from $2.60 in the prior year. The company lowered its full-year revenue guidance to $11.00B-$11.15B (representing a 1% decline to flat) and EPS guidance to $10.95-$11.15, citing tariff and macroeconomic headwinds. Americas revenue declined 3%, while international grew 22%, but operating margin collapsed 730 bps to 11.2%.
Key Financial Metrics
Key Facts
- Q1 FY2026 revenue $2.47B, +4% YoY (2% constant currency), below consensus of $2.59B
- Diluted EPS $1.69 vs $2.60 YoY, a 35% decline; consensus was $2.69
- Americas net revenue -3% YoY; Americas comparable sales -5%
- Gross margin -410 bps to 54.2%; operating margin -730 bps to 11.2%
- Full-year FY2026 revenue guidance lowered to $11.00B-$11.15B (prior $11.35B-$11.50B), implying a decline of 1% to flat
- Full-year FY2026 EPS guidance lowered to $10.95-$11.15 (prior $12.10-$12.30)
- Q2 FY2026 revenue guidance of $2.45B-$2.475B, representing a decline of 3% to 2% YoY
- Company repurchased 2.2M shares for $358.3M in the quarter
- Cash and equivalents $1.5B; inventories +2% to $1.7B
Financial Impact
EPS declined 35% YoY; full-year guidance cut by ~$1.15-$1.15 per share; revenue guidance cut by ~$350M at midpoint
Risk Factors
- Continued weakness in Americas comparable sales (-5% in Q1)
- Tariff and macroeconomic headwinds explicitly cited in guidance
- Operating margin compression (730 bps decline) suggests structural cost pressures
- Full-year guidance implies revenue decline for the first time in recent history
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001397187-26-000077 |
| Document: lulu-20260604.htm | 0001397187-26-000077 |
| Document: 0001397187-26-000077-index-headers.html | 0001397187-26-000077 |
| Document: 0001397187-26-000077-index.html | 0001397187-26-000077 |
| Document: 0001397187-26-000077.txt | 0001397187-26-000077 |
| 8-K Data (Synthetic) | 0001397187-26-000077 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 14, 2026 18d ago | 8-K | $98.37 $103.73 | ▲ +5.45% | ▲ +4.63% | $94.46 (−3.97%) |
Sep 9, 2026 23d ago | Press Release | $99.72 $95.98 | ▲ +3.75% | ▲ +2.66% | $94.46 (+5.27%) |
Sep 9, 2026 23d ago | ANALYST-UPGRADE | — | awaiting T+5 | — | — |
Aug 8, 2026 7w ago | Institutional Cluster | $127.80 $115.44 | ▼ −9.67% | ▼ −9.62% | $94.46 (−26.09%) |
Aug 5, 2026 8w ago | Court Ruling | $123.51 $120.72 | ▼ −2.26% | ▼ −2.61% | $94.46 (−23.52%) |
Jul 16, 2026 11w ago | ANALYST-DOWNGRADE | $118.79 $110.63 | ▲ +6.87% | ▲ +5.20% | $94.46 (+20.48%) |
Jun 25, 2026 14w ago | 8-K | $117.57 $118.43 | ▲ +0.73% | ▼ −1.43% | $94.46 (−19.66%) |
Jun 5, 2026 17w ago | ANALYST-UPGRADE | $114.23 $118.77 | ▲ +3.97% | ▲ +3.40% | $94.46 (−17.31%) |
Jun 5, 2026 17w ago | ANALYST-DOWNGRADE | $114.23 $118.77 | ▲ +3.97% | ▲ +3.40% | $94.46 (−17.31%) |
Jun 5, 2026 17w ago | DEFA14A | $114.23 $118.77 | ▲ +3.97% | ▲ +3.40% | $94.46 (−17.31%) |
US Market Status
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