Lululemon Athletica (LULU) Stock News

lululemon named Maggie Gauger (ex-Athleta CEO) as President & Chief Product Officer and Joseph Godsey (ex-Walmart Canada) as COO, effective Oct 26. Two executives depart Nov 6. Searches for brand, comms, and tech chiefs are open.

Lululemon Q2 revenue of $2.4B missed estimates, comparable sales fell 9%. FY26 revenue and EPS guidance cut sharply; Q3 EPS guidance of $0.93-$0.98 vs $2.40 estimate. Stock down 15-20% after hours.

A Lululemon executive said the company is increasing marketing investment in the second half of the year. Slower-than-expected top-line trends will require additional seasonal clearance. The Middle East franchise business continues to be impacted by the regional conflict, and European tourism is also affected.

On its earnings call, Lululemon's management said the Q2 slowdown in leggings and bags was worse than anticipated and that the response in the second half has been weaker than expected. The statement suggests ongoing demand challenges in the retailer's core categories.