Lululemon's Soft Fiscal Q2, Lowered 2026 Outlook Prompt Caution, Oppenheimer Says

11:01 AM EDT, 09/04/2026 (MT Newswires) -- Lululemon Athletica (LULU) reported softer-than-planned fiscal Q2 results and lowered its fiscal 2026 guidance again, prompting a cautious stance on the stock, as the delayed start of incoming CEO Heidi O'Neill leaves the company a "rudderless ship" and risks further competitive disintermediation amid deteriorating macro conditions, Oppenheimer said Friday. Underlying fiscal Q2 results and management's more downbeat tone toward the rest of the fiscal year proved weaker than Oppenheimer's already dampened expectations, according to the note. While recent data points to a more challenging macro backdrop impacting sales growth across the athleisure industry, the brokerage believes the incremental top- and bottom-line weakness at Lululemon is primarily due to internal missteps in merchandising and marketing, the note added. Management noted that demand in North America was even softer in August and expects fiscal Q3 comparable sales in the region to decline at a mid-teens rate, versus a 12% decline in fiscal Q2, the brokerage said. Revised fiscal 2026 guidance for adjusted EPS of $8.62 to $8.87 compares with expectations at the beginning of the year for earnings of $12.10 to $12.30, a decline of nearly 30%, the brokerage added. Oppenheimer kept a perform rating on Lululemon Athletica. Shares of Lululemon Athletica were down approximately 18% in Friday trading. Price: 99.61, Change: -22.17, Percent Change: -18.20