Lululemon stock falls 18% after weak Q2 revenue, outlook cut
Business
Lululemon's stock took a big 18.2% hit after hours on Thursday, closing at $99.65 and marking a 42% drop for the year so far.
The brand's second-quarter revenue fell short of expectations at $2.42 billion (down 4% from last year), leading the company to lower its outlook for the rest of 2026.
Lululemon's Heidi O'Neill to tackle slump
Sales in key categories such as leggings slipped more than expected, with interim CEO Meghan Frank mentioning that "negative commentary" on social media didn't help.
Even with a tariff refund boosting margins, profits still dipped slightly.
Lululemon now expects third-quarter revenue to fall up to 11%, and new CEO Heidi O'Neill steps in next week hoping fresh styles and better inventory moves can turn things around.