Lululemon Q2: Don't Be Fooled, Still Not Cheap
Summary
Lululemon's Q2 EPS beat estimates, but revenue missed, guidance was slashed, and U.S. sales declined, signaling deeper b...
Lululemon's Q2 EPS beat estimates, but revenue missed, guidance was slashed, and U.S. sales declined, signaling deeper business issues. Management admitted product fatigue and overreliance on casual wear, with tariffs adding significant margin headwinds through 2026. China and international growth are bright spots, but even these markets show early signs of fatigue and can't offset U.S. weakness.