TLDRLululemon stock drops 20% after weak Q2 sales and a reduced fiscal 2026 outlook.Americas revenue falls 8% as comparable sales slide 12% in the second quarter.Lululemon cuts 2026 revenue guidance as demand pressure hits its core market.Q2 operating income falls 13% despite tariff refunds lifting gross margins.Full-year EPS guidance drops to $9.48-$9.73 as sales weakness weighs on growth.Lululemon (LULU) stock plunged 20.42% to $96.91 in pre-market trading after weak second-quarter sales results and a reduced fiscal 2026 outlook. Shares had closed Thursday at $121.77, up 1.42%, before the earnings release triggered a sharp reversal in early trading. The drop followed weaker Americas demand, lower comparable sales, and guidance pointing to further revenue pressure through the year ahead.Lululemon Athletica Inc., LULULululemon Q2 Sales Fall as Americas Demand WeakensLululemon reported second-quarter revenue of $2.4 billion, down 4% from the same period last year across its global operations worldwide. Revenue fell 5% on a constant-currency basis, while Americas revenue declined 8% during the quarter from the prior year period. International revenue rose 4%, although constant-currency growth slowed to 2% compared with the same quarter in fiscal 2025 overall.Comparable sales dropped 9% overall, while constant-currency comparable sales declined 10% during the quarter across Lululemon’s store network globally. Americas comparable sales fell 12%, showing deeper weakness across the company’s largest operating region during the three-month reporting period. International comparable sales declined 3%, while constant-currency comparable sales fell 6% from the prior-year quarter despite continued overseas expansion plans.Gross profit slipped 1% to $1.5 billion, while gross margin increased 200 basis points to 60.5% during the quarter overall. However, $134.5 million in tariff refunds lifted gross margin by 560 basis points and supported quarterly profitability. Operating income fell 13% to $453.7 million, while operating margin declined 190 basis points to 18.8% from last year.Lululemon Cuts 2026 Guidance After Weak QuarterDiluted earnings per share fell to $2.92 from $3.10 in the second quarter of fiscal 2025. The quarter included $0.86 per share from tariff refunds and related interest after taxes, which supported reported earnings. Lululemon also repurchased 2.7 million shares for $330 million and ended the quarter with 825 stores after nine net openings.The company expects third-quarter revenue between $2.29 billion and $2.32 billion, representing a 10% to 11% year-over-year revenue decline. Third-quarter earnings per share should range from $0.93 to $0.98, with an estimated tax rate near 30%. The weaker outlook followed falling sales and continued pressure across the Americas business, where comparable sales posted a double-digit decline.For fiscal 2026, Lululemon expects revenue between $10.35 billion and $10.50 billion, down 5% to 7% from last year. Full-year earnings per share should range from $9.48 to $9.73, including the tariff-related benefit recognized during the second quarter. Lululemon holds $1.4 billion in cash as incoming CEO Heidi O’Neill prepares to lead efforts to improve growth and execution. The post Lululemon (LULU) Stock: Plunges 20% After Weak Q2 Sales and Guidance Cut appeared first on Blockonomi.