Lululemon reported a 4% decline in revenue and a 9% drop in comparable sales for the second fiscal quarter, marking another challenging period for the retailer. Interim CEO Meghan Frank noted that negative social media commentary and a significant slowdown in core categories, particularly leggings, contributed to the poor performance.
For the upcoming third fiscal quarter, Lululemon expects revenue between $2.29 billion and $2.32 billion, reflecting a decline of approximately 10% to 11% year-over-year, and anticipates earnings per share of 93 to 98 cents. The full-year outlook has also been revised down, with expected net revenue between $10.35 billion and $10.5 billion, a 5% to 7% decline from previous estimates.
Despite a gross profit of $1.5 billion and a gross margin increase due to a tariff refund, the company is under pressure to regain customer interest and relevance. Lululemon's new CEO, Heidi O'Neill, will take over next week as the company aims to implement strategies to drive sales growth and improve brand perception