Lululemon Q2 Earnings Beat Amid U.S. Weakness, Cuts Annual Forecast

Lululemon Athletica reported strong second-quarter earnings with a GAAP EPS of $3.10, beating analyst expectations despite a slight revenue miss at $2.5 billion. The company showed international market strength but faced underperformance in its U.S. business and challenges in product execution, prompting strategic reassessment. Lululemon lowered its full-year revenue forecast to between $10.85 billion and $11 billion and adjusted profit estimates to $12.77 to $12.97 per share, both below previous guidance and analyst forecasts. CEO Calvin McDonald expressed disappointment with the U.S. results and emphasized ongoing efforts to improve merchandise mix and accelerate business growth. Analyst consensus rates Lululemon as an outperform with average price targets ranging from $273.85 to as high as $520.13, highlighting significant potential upside. Despite positive momentum internationally, the company faces headwinds including tariff pressures and a cautious consumer spending environment ahead of the holiday season.