Lululemon Stock Plummets 18% After Missing Earnings Targets

Lululemon stock took a massive hit, dropping over 18% in after hours trading following a second quarter earnings report that failed to meet expectations. Revenue fell 4% to $2.42 billion, missing analyst targets of $2.46 billion. The company also saw a 9% decline in comparable sales, signaling a clear struggle with demand in the North American market.

Management pointed to inconsistent results from recent product launches and negative social media sentiment as key factors behind the slowdown. While gross margins saw a slight boost, the overall net income fell to $329.2 million compared to $370.9 million during the same period last year. This dip marks a tough stretch for the brand, which has faced consistent pressure throughout 2026.

Looking forward, the company lowered its full year revenue guidance to a range between $10.35 billion and $10.5 billion. Investors are now watching closely as incoming CEO Heidi O’Neill prepares to take the lead next week. Market participants will be eager to see if the new leadership can stabilize the brand and reverse the current downward trend in share price.