"Investors in athletic apparel maker Lululemon Athletica are seeing red this morning after the company reported its second-quarter fiscal 2025 results. While the athleisure brand surpassed Wall Street earnings estimates for the quarter, it provided guidance that alarmed its investors. Here's what you need to know about that guidance and why Lululemon's stock (Nasdaq: LULU) is crashing. After the closing bell yesterday, Lululemon reported its Q2 results for fiscal 2025, which ended on August 3, 2025."
"On the surface, the company had some modest wins for the quarter. The highlight was the company's international net revenue, which increased 22%. International comparable sales increased 15%, and gross profit increased 5% to $1.5 billion. The company also posted diluted earnings per share (EPS) of $3.10. As noted by CNBC, these results handily beat LSEG analyst expectations of an EPS of $2.88."
"Yet it's the company's Americas numbers, which include the United States, where cracks have begun to show. Despite strong international net revenue and comparable sales increases, net revenue in the Americas increased by just 1%. And Americas comparable sales decreased 4%. These Americas results offset a substantial number of the significant gains that Lululemon saw internationally for the quarter, and reduced its global net revenue increase to just 7% (to $2.5 billion). Global comparable sales increased just 1%. In total, Lululemon posted revenue for the quarter of $2.53 billion, slightly behind the $2.54 billion analysts expected."
Lululemon reported Q2 fiscal 2025 results ending August 3, 2025. International net revenue rose 22%, international comparable sales rose 15%, and gross profit increased 5% to $1.5 billion. Diluted EPS amounted to $3.10, beating LSEG analyst expectations of $2.88. Americas net revenue grew just 1% while Americas comparable sales fell 4%, reducing global net revenue growth to 7% and global comparable sales to 1%. Total revenue was $2.53 billion, slightly below analysts' $2.54 billion estimate. Updated full-year earnings and revenue guidance for 2025 prompted investor concern and a sharp drop in the stock price.
Read at Fast Company
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