Lululemon (LULU) Q2 2026 earnings
Lululemon shares dropped 15% following a disappointing second-quarter earnings report and a downward revision of the company's annual outlook. The retailer cited negative social media sentiment and a slowdown in core product categories as primary drivers for the decline.
Why it matters
The significant stock decline reflects broader challenges in the retail apparel sector and the increasing impact of social media perception on brand performance.
Shares of Lululemon plunged 15% on Thursday after the retailer reported another quarter of disappointing results and cut its outlook for the year.
The company reported a 4% decline in revenue and a comparable sales decrease of 9% for the second fiscal quarter. It was only the latest rough quarter for the apparel retailer, after it reduced its guidance in the previous quarter.
Interim CEO Meghan Frank said on a call with analysts that the company experienced "negative commentary" on social media that affected its performance in the second quarter. The company also experienced a "greater-than-expected" slowdown in some of its core categories, including leggings.
"While we are seeing good guest reaction to our activations and some of our newer styles, the overall response to our product launches remains inconsistent, and we've continued to see pressure on the brand in both of our largest markets," Frank said.
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