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Yahoo Finance Senior Business Reporter Brooke DiPalma joins Market Domination Overtime to unpack Lululemon’s (LULU) Q2 results as the company slashes its outlook, citing “challenging dynamics.”
Lululemon’s <a href="https://bitcomme.com/docusign-announces-second-quarter-fiscal-2027-financial-results/" title="Docusign Announces Second Quarter Fiscal 2027 Financial Results”>second quarter earnings has just now crossed the wire. Let’s go to Yahoo Finance’s Brooke DiPalma for the numbers, Brooke.
Well, Lululemon certainly did miss on revenue, but they did beat on the bottom line. and that was largely because of those tariff refunds. During this quarter, the company actually received about $135 million in tariff refunds. That boosted their adjusted earnings per share by about 86 cents.
So, on the flip side though, total sales and comparable sales year over year is really where they took a tumble. Total comp sales were expected to come in down about 4.3%. They ended up falling 9% year over year.
And here in America, things got even worse. They fell about 12%, also more than expected. They expected a decline of about nearly 11%, so just a tick lower. but international, they actually expected or Wall Street expected they expected to see an increase of about 8.6%. They got a decline of about 3%
So way off of Wall Street’s expectations. All of this led the company to lower their full-year outlook for the second quarter in a row. And what we essentially heard, remember, there’s two interim co-CEOs there. They ultimately said here that they continue to navigate some quote unquote challenging dynamics. And they also said that they’re taking a prudent approach with their revised full-year outlook.
All this happening while a new CEO is set to take the helm just next week. Her name’s Heidi O’Neal. She’s a former Nike executive. I believe coming out of retirement for this. And boy does she have a stage to set here with the stock now tumbling down 14% after hours trading.
All right, thank you, Brooke. Appreciate it.
