Lululemon Athletica stock falls after tariff-boosted earnings and guidance cut

Lululemon Athletica Inc. stock (ISIN CA5500211090) is trading near a seven-year low around USD 98 as of September 19, 2026, after fiscal 2026 guidance was cut following a softer second quarter where revenue fell 4% to USD 2.4 billion and comparable sales declined 9% year over year.

Q2 2026 earnings show weaker demand behind guidance cut

According to Zacks on September 19, 2026, Lululemon reported second-quarter fiscal 2026 revenue of USD 2.4 billion, down 4% from the prior-year quarter, while comparable sales fell 9% and 10% on a constant-dollar basis.

The same earnings overview notes that Lululemon recognized USD 134.5 million of tariff refunds under the International Emergency Economic Powers Act (IEEPA), plus USD 4.1 million in associated interest, which together increased diluted earnings per share by USD 0.86 in Q2 2026, partly masking underlying demand weakness.Zacks

Management reacted by lowering its fiscal 2026 outlook, now expecting full-year revenue of USD 10.35 billion to USD 10.50 billion, which represents a decline of 5% to 7% versus the prior year, and projecting earnings per share in a range of USD 9.48 to USD 9.73.Zacks

Recent price action and technical picture under pressure

Market data from MarketBeat on September 19, 2026, show Lululemon Athletica shares trading at USD 98.06 on Nasdaq, with a 52-week range between USD 95.35 and USD 225.98 and a market capitalization of about USD 11.36 billion as of that date.

This means the current price sits only slightly above the 52-week and seven-year low of USD 95.35 highlighted by Foreign Policy Journal on September 18, 2026, which noted that the stock has fallen more than 39% over the past year.

Technical indicators compiled by FXEmpire and updated on September 19, 2026, classify the overall signal as Sell, with moving averages on the daily timeframe described as strongly bearish while oscillators point to some buying pressure, suggesting a downward longer-term trend with a possible short-term reversal if support levels around USD 97 hold.

Analysts turn more cautious as growth slows

On the valuation and rating side, Zacks assigns Lululemon a Rank #5 (Strong Sell) as of September 19, 2026, citing weaker demand trends, margin pressure and the lowered fiscal 2026 outlook, with the stock carrying a Value Score of B, Growth Score of B, Momentum Score of F and a composite VGM Score of C.

An article from Zacks on September 19, 2026, adds that the shares have lost 39.9% in the past six months compared with declines of 4.3% for the broader industry and 4% for the Consumer Discretionary sector, underlining how Lululemon has underperformed both its peer group and the S&P 500, which rose 14% over the same period.

That analysis further notes that Lululemon trades at a forward price-to-earnings ratio of 10.59 times versus an industry average of 14.41 times, reflecting a discount that nonetheless comes with earnings expectations pointing to a year-over-year decline of 28.1% for fiscal 2026 and 5.5% for fiscal 2027, with consensus EPS estimates for both years having been revised down in the past seven days.Zacks

Stock remains near lows despite tariff-related EPS boost

For investors, the key takeaway is that while tariff refunds boosted second-quarter EPS by USD 0.86 and helped the company beat consensus expectations on reported earnings for the period ended September 3, 2026, underlying revenue and comparable sales trends were negative, and guidance now implies full-year revenue declining between 5% and 7% alongside lower profitability.

As of September 19, 2026, Lululemon Athletica stock closed at USD 98.06 on Nasdaq, within the lower end of its USD 95.35 to USD 225.98 52-week range and corresponding to a market capitalization of roughly USD 11.36 billion, leaving the shares well below prior highs as the market continues to price in slower growth and margin pressure.

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