What to Expect From lululemon athletica's Next Quarterly Earnings Report

With a market cap of $13.6 billion, lululemon athletica inc. (LULU) is a leading technical athletic apparel, footwear, and accessories company that designs innovative products for yoga, running, training, and a wide range of active lifestyles. The company combines advanced fabric technology with functional design and community-driven product development to create high-performance offerings that promote wellbeing and meaningful customer engagement.

The Vancouver, Canada-based company is set to announce its fiscal Q2 2026 results soon. Ahead of this event, analysts expect lululemon athletica to report an EPS of $1.79, down 42.3% from $3.10 in the year-ago quarter. However, it has surpassed Wall Street's earnings estimates in the last four quarters.

For fiscal 2026, analysts predict the athletic apparel maker to report an EPS of $10.94, a 17.5% drop from $13.26 in fiscal 2025. Nevertheless, EPS is anticipated to rise 5.5% year-over-year to $11.54 in fiscal 2027.

Shares of lululemon athletica have tumbled 47.7% over the past 52 weeks, underperforming both the S&P 500 Index's ($SPX) 16.5% return and the State Street Consumer Discretionary Select Sector SPDR ETF's (XLY) 1.8% decline over the period. 

lululemon athletica's shares dropped 8.6% following its Q1 2026 results on Jun. 4. The company projected Q2 EPS of $1.76 - $1.81, well below analysts' estimate, expected Q2 gross margin to decline about 410 basis points due to higher tariff costs and investments, and lowered its fiscal 2026 revenue outlook to flat to down 1% from the previous 2% - 4% growth forecast while cutting full-year EPS guidance to $10.95 - $11.15 from $12.10 - $12.30. 

Investor concerns were compounded by a 4% decline in U.S. Q1 revenue (its largest market), expectations for additional seasonal clearance due to slower-than-expected sales, and muted response to new product launches.

Analysts' consensus view on LULU stock is cautious, with an overall "Hold" rating. Among 32 analysts covering the stock, one recommends "Strong Buy," 25 indicate “Hold,” two advise "Moderate Sell," and four give "Strong Sell." The average analyst price target for lululemon athletica is $122.62, suggesting a potential upside of 7.3% from current levels.