Lululemon Q1 2026: Revenue Rises 4%, Margin Pressure, Lower Full-Year Outlook

Lululemon reported its first quarter of fiscal 2026 with net revenue of about $2.47B, up 4% year over year (2% in constant dollars), as international sales grew 22% while Americas declined 3%. Gross profit fell 3% to about $1.34B and gross margin declined to 54.2%, with operating income down 37% to roughly $276.9M and diluted EPS of $1.69. The company repurchased 2.2 million shares for $358.3M, ended the quarter with about $1.515B in cash, and inventory rose 2%. For Q2 2026, guidance is net revenue of $2.45–$2.475B and EPS $1.76–$1.81; for the full year 2026, net revenue is guided to $11.00–$11.15B and EPS $10.95–$11.15, assuming ~30% tax rate and excluding tariff refunds or additional buybacks. A conference call was scheduled for today.