lululemon: I Was Right

lululemon athletica inc. faces intensifying revenue declines, missing Q2 estimates and guiding for its first full-year revenue drop since going public. Americas weakness deepened with 8% revenue and 12% comp sales declines; international growth stalled, notably with China revenues down 2%. Q2 EPS beat was driven by $134.5M in tariff refunds, masking underlying margin and profitability deterioration. I reiterate a Sell rating for LULU due to worsening fundamentals, negative forward guidance, and an unattractive risk-reward profile despite a low valuation. lululemon athletica inc. ( LULU ) plunged another 20% after its Q2 FY26 earnings yesterday. I had downgraded lululemon to a Sell in my previous post in July, after management severely slashed their forward revenue expectations.