LULULEMON ATHLETICA INC. ANNOUNCES SECOND QUARTER FISCAL 2026 RESULTS
Revenue decreased 4% to $2.4 billion, or decreased 5% on a constant dollar basis
– lululemon athletica inc. (NASDAQ:LULU) today announced financial results for the second quarter of fiscal 2026, which ended on August 2, 2026.
Meghan Frank, Interim Co-CEO and Chief Financial Officer, stated: "While we continue to navigate some challenging dynamics, we are taking a prudent approach with our revised full-year outlook. Our teams remain focused on accelerating growth by strengthening our product offerings, increasing our marketing investments, and maintaining disciplined expense management. Looking ahead, we have confidence in the strength of the lululemon brand, the deep connection we have with our guests and ambassadors, and the significant opportunities we see to drive long-term growth."
André Maestrini, Interim Co-CEO, President, and Chief Commercial Officer, stated: "We remain confident in our ability to take the right steps to strengthen our performance and deliver sustainable growth over time. I would like to thank our teams around the world for their focused efforts and continued commitment to lululemon. We look forward to welcoming our incoming CEO, Heidi O'Neill, next week as we begin an exciting new chapter for the company."
• Net revenue decreased 4% to $2.4 billion, or decreased 5% on a constant dollar basis.
– International comparable sales decreased 3%, or 6% on a constant dollar basis.
• Gross profit decreased 1% to $1.5 billion and gross margin increased 200 basis points to 60.5%.
– This includes $134.5 million of tariff refunds (1) which increased gross margin by 560 basis points.
• Income from operations decreased 13% to $453.7 million and operating margin decreased 190 basis points to 18.8%.
– The tariff refunds (1) of $134.5 million increased operating margin by 560 basis points.
• The effective income tax rate for the second quarter of 2026 was 29.6%, compared to 30.5% for the second quarter of 2025.
• Diluted earnings per share were $2.92 compared to $3.10 in the second quarter of 2025.
– This includes $0.86 per share related to tariff refunds and associated interest (1) , net of tax.
• The Company repurchased 2.7 million of its shares for a cost of $330.0 million.
• The Company opened nine net new company-operated stores during the second quarter, ending with 825 stores.
(1) During the second quarter of 2026, the Company received International Emergency Economic Powers Act ("IEEPA") tariff refunds of $134.5 million plus associated interest of $4.1 million. These amounts were recognized as a reduction of cost of goods sold and an increase to other income, respectively, and increased diluted earnings per share by $0.86. 1
The Company ended the second quarter of 2026 with $1.4 billion in cash and cash equivalents and it had $593.7 million of available capacity under its committed revolving credit facility.
Inventories at the end of the second quarter of 2026 decreased by 1% to $1.7 billion compared to the end of the second quarter of 2025. On a unit basis, inventories decreased 7%.
For the third quarter of 2026, the Company expects net revenue to be in the range of $2.290 billion to $2.320 billion, representing a decline of 10% to 11%. Diluted earnings per share are expected to be in the range of $0.93 to $0.98 for the quarter. This assumes a tax rate of approximately 30%.
For 2026, the Company now expects net revenue to be in the range of $10.350 billion to $10.500 billion, representing a decline of 5% to 7%. Diluted earnings per share are now expected to be in the range of $9.48 to $9.73 for the year. This assumes a tax rate of approximately 30%. The 2026 outlook includes $0.86 per share from tariff refunds and associated interest, net of tax recognized in the second quarter of 2026, but does not reflect any further potential tariff refunds.
The guidance and outlook forward-looking statements made in this press release are based on management's expectations as of the date of this press release and do not incorporate future unknown impacts, including tariffs and macroeconomic trends. The Company undertakes no duty to update or to continue to provide information with respect to any forward-looking statements or risk factors, whether as a result of new information or future events or circumstances or otherwise. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of risks and uncertainties, including those stated below.
A conference call to discuss second quarter results is scheduled for today, September 3, 2026, at 4:30 p.m. Eastern time. Those interested in participating in the call are invited to dial 1-833-752-3550 or 1-647-846-8290, if calling internationally, approximately 10 minutes prior to the start of the call. A live webcast of the conference call will be available online at: https://corporate.lululemon.com/investors/news-and-events/events-and- presentations. A replay will be made available online approximately two hours following the live call for a period of 30 days.
lululemon athletica inc. (NASDAQ:LULU) is a technical athletic apparel, footwear, and accessories company for yoga, running, training, and most other activities, creating transformational products and experiences that build meaningful connections, unlocking greater possibility and wellbeing for all. Setting the bar in innovation of fabrics and functional designs, lululemon works with yogis and athletes in local communities around the world for continuous research and product feedback. For more information, visit lululemon.com.
We report certain financial metrics on a constant dollar basis, which is a non- GAAP financial measure.
A constant dollar basis assumes the average foreign currency exchange rates for the period remained constant with the average foreign currency exchange rates for the same period of the prior year. The Company provides constant dollar changes in its results to help investors understand the underlying performance of net revenue excluding the impact of changes in foreign currency exchange rates. Management uses constant currency metrics internally when reviewing and assessing financial performance. 2 These non-GAAP financial measures are provided in addition to, and not a substitute for, the corresponding financial measures calculated in accordance with GAAP. For more information on these non-GAAP financial measures, please see the section captioned "Reconciliation of Non-GAAP Financial Measures" included in the accompanying financial tables, which includes more detail on the GAAP financial measure that is most directly comparable to each non-GAAP financial measure, and the related reconciliations between these financial measures. The Company's non-GAAP financial measures may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures reported by other companies.
This press release includes estimates, projections, statements relating to the Company's business plans, objectives, and expected operating results that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. In many cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "outlook," "believes," "intends," "estimates," "predicts," "potential" or the negative of these terms or other comparable terminology. These forward-looking statements also include the Company's guidance and outlook statements. These statements are based on management's current expectations but they involve a number of risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in the forward-looking statements as a result of risks and uncertainties, which include, without limitation: the Company's ability to maintain its brand value and reputation; its highly competitive market and increasing competition; its ability to anticipate consumer preferences and successfully develop and introduce new, innovative and differentiated products; the acceptability of its products to guests; increasing costs and decreasing selling prices; its ability to accurately forecast guest demand for its products; its ability to expand in light of its limited operating experience and limited brand recognition in new international markets and new product categories; its ability to attract, manage, and retain highly qualified individuals; its ability to manage its growth and the increased complexity of its business effectively; changes in consumer shopping preferences and shifts in distribution channels; its leasing of retail and distribution space; seasonality; changes to U.S. tariff and customs policy, including the elimination of the de minimis exemption; macroeconomic volatility, inflationary pressures, and shifts in consumer sentiment; global political and economic instability, including geopolitical conflicts and political polarization; trade restrictions, tariffs, and customs changes; its ability to comply with trade and other regulations; changes in tax laws, transfer pricing, or unanticipated tax liabilities; fluctuations in foreign currency exchange rates; global or regional public health crises; disruptions of its supply chain; its reliance on a relatively small number of vendors to supply and manufacture a significant portion of its products; suppliers or manufacturers not complying with its Vendor Code of Ethics or applicable laws; fluctuating costs of raw materials and the cost of producing its products; its ability to deliver its products to the market and to meet guest expectations if it has problems with its distribution system; its ability to safeguard against security breaches with respect to its technology systems; its compliance with privacy and data protection laws; any material disruption of its technology systems; its ability to have technology- based systems for its e-commerce business function effectively; imitation by its competitors; its ability to protect its intellectual property rights; conflicting trademarks and patents and the prevention of sale of certain products; actions by stockholders, activists, or consumers; its exposure to various types of litigation; climate change and related pressures; heightened scrutiny and legal risks from competing pressures regarding ESG; and other risks and uncertainties set out in filings made from time to time with the United States Securities and Exchange Commission and available at www.sec.gov, including, without limitation, its most recent reports on Form 10-K and Form 10-Q. You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements. The forward-looking statements made herein speak only as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances, except as may be required by law. 3 Contacts:
The fiscal year ending January 31, 2027 is referred to as "2026" and the fiscal year ended February 1, 2026 is referred to as "2025".
Cash flows from First Two Quarters operating activities 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net income $ 524,271 $ 685,477 Adjustments to reconcile net income to net cash provided by 65,007 -475,755 operating activities Net cash provided by operating 589,278 209,722 activities Net cash used in -281,802 -319,960 investing activities Net cash used in -712,225 -744,823 financing activities Effect of foreign currency exchange rate -12,716 26,519 changes on cash and cash equivalents Decrease in cash and -417,465 -828,542 cash equivalents Cash and cash equivalents, beginning 1,807,202 1,984,336 of period Cash and cash equivalents, end of $ 1,389,737 $ 1,155,794 period
The below changes show the change compared to the corresponding period in the prior year.
Second Quarter 2026 Net Foreign Change in Revenue Change exchange constant dollars United -8 % — % -8 % States Canada -11 2 -9 Americas -8 — -8 China 4 -6 -2 Mainland Rest of 5 1 6 World Total 4 -2 2 internati… Total -4 % -1 % -5 %
Second Quarter 2026 Comparab… Foreign Change in Sales(1) Change exchange constant dollars Americas -12 % — % -12 % China -2 -6 -8 Mainland Rest of -4 1 -3 World Total -3 -3 -6 internat… Total -9 % -1 % -10 %
(1) Comparable sales includes comparable company-operated store and e-commerce net revenue. Comparable company-operated stores have been open for at least 12 full fiscal months, or open for at least 12 full fiscal months after being significantly expanded. Comparable company-operated stores exclude stores which have been temporarily relocated for renovations or have been temporarily closed. 8
Number of Number of Number Number of Stores Stores of Stores Open at Opened Stores Open at the During Closed the End Beginning the During of the of the Quarter the Quarter Quarter Quarter 3rdQuar… 784 14 2 796 2025 4thQuar… 796 18 3 811 2025 1stQuar… 811 11 6 816 2026 2ndQuar… 816 11 2 825 2026
Total Gross Gross Total Gross Square Square Gross Square Feet Feet Square Feet at Added Lost Feet at the During During the End Beginni… the the of the of the Quarte… Quarter… Quarter Quarter 3rdQua… 3,511 128 9 3,630 2025 4thQua… 3,630 116 10 3,736 2025 1stQua… 3,736 66 14 3,788 2026 2ndQua… 3,788 100 8 3,880 2026
(1) Company-operated store count and square footage summary excludes retail locations operated by third parties under license and supply arrangements.
(2) Gross square feet added/lost during the quarter includes net square foot additions for company-operated stores which have been renovated or relocated in the quarter. 9
Full text with the tables
Exhibit 99.1
LULULEMON ATHLETICA INC. ANNOUNCES SECOND QUARTER FISCAL 2026 RESULTS
Revenue decreased 4% to $2.4 billion, or decreased 5% on a constant dollar basis
Comparable sales decreased 9%, or 10% on a constant dollar basis
Diluted EPS of $2.92
(1)
Vancouver, British Columbia – September 3, 2026
– lululemon athletica inc. (NASDAQ:LULU) today announced financial results for
the second quarter of fiscal 2026, which ended on August 2, 2026.
Meghan Frank, Interim Co-CEO and Chief Financial Officer, stated: "While we
continue to navigate some challenging dynamics, we are taking a prudent approach
with our revised full-year outlook. Our teams remain focused on accelerating
growth by strengthening our product offerings, increasing our marketing
investments, and maintaining disciplined expense management. Looking ahead, we
have confidence in the strength of the lululemon brand, the deep connection we
have with our guests and ambassadors, and the significant opportunities we see
to drive long-term growth."
André Maestrini, Interim Co-CEO, President, and Chief Commercial Officer,
stated: "We remain confident in our ability to take the right steps to
strengthen our performance and deliver sustainable growth over time. I would
like to thank our teams around the world for their focused efforts and continued
commitment to lululemon. We look forward to welcoming our incoming CEO, Heidi
O'Neill, next week as we begin an exciting new chapter for the company."
For the second quarter of 2026, compared to the second quarter of 2025:
• Net revenue decreased 4% to $2.4 billion, or decreased 5% on a constant dollar
basis.
– Americas net revenue decreased 8%.
– International net revenue increased 4%, or 2% on a constant dollar basis.
• Comparable sales decreased 9%, or 10% on a constant dollar basis.
– Americas comparable sales decreased 12%.
– International comparable sales decreased 3%, or 6% on a constant dollar basis.
• Gross profit decreased 1% to $1.5 billion and gross margin increased 200 basis
points to 60.5%.
– This includes $134.5 million of tariff refunds (1) which increased gross
margin by 560 basis points.
• Income from operations decreased 13% to $453.7 million and operating margin
decreased 190 basis points to 18.8%.
– The tariff refunds (1) of $134.5 million increased operating margin by 560
basis points.
• The effective income tax rate for the second quarter of 2026 was 29.6%,
compared to 30.5% for the second quarter of 2025.
• Diluted earnings per share were $2.92 compared to $3.10 in the second quarter
of 2025.
– This includes $0.86 per share related to tariff refunds and associated
interest (1) , net of tax.
• The Company repurchased 2.7 million of its shares for a cost of $330.0
million.
• The Company opened nine net new company-operated stores during the second
quarter, ending with 825 stores.
__________
(1) During the second quarter of 2026, the Company received International
Emergency Economic Powers Act ("IEEPA") tariff refunds of $134.5 million plus
associated interest of $4.1 million. These amounts were recognized as a
reduction of cost of goods sold and an increase to other income, respectively,
and increased diluted earnings per share by $0.86.
1
Balance Sheet Highlights
The Company ended the second quarter of 2026 with $1.4 billion in cash and cash
equivalents and it had $593.7 million of available capacity under its committed
revolving credit facility.
Inventories at the end of the second quarter of 2026 decreased by 1% to $1.7
billion compared to the end of the second quarter of 2025. On a unit basis,
inventories decreased 7%.
2026 Outlook
For the third quarter of 2026, the Company expects net revenue to be in the
range of $2.290 billion to $2.320 billion, representing a decline of 10% to 11%.
Diluted earnings per share are expected to be in the range of $0.93 to $0.98 for
the quarter. This assumes a tax rate of approximately 30%.
For 2026, the Company now expects net revenue to be in the range of $10.350
billion to $10.500 billion, representing a decline of 5% to 7%. Diluted earnings
per share are now expected to be in the range of $9.48 to $9.73 for the year.
This assumes a tax rate of approximately 30%. The 2026 outlook includes $0.86
per share from tariff refunds and associated interest, net of tax recognized in
the second quarter of 2026, but does not reflect any further potential tariff
refunds.
The outlook does not reflect any future repurchases of the Company's shares.
The guidance and outlook forward-looking statements made in this press release
are based on management's expectations as of the date of this press release and
do not incorporate future unknown impacts, including tariffs and macroeconomic
trends. The Company undertakes no duty to update or to continue to provide
information with respect to any forward-looking statements or risk factors,
whether as a result of new information or future events or circumstances or
otherwise. Actual results and the timing of events could differ materially from
those anticipated in these forward-looking statements as a result of risks and
uncertainties, including those stated below.
Conference Call Information
A conference call to discuss second quarter results is scheduled for today,
September 3, 2026, at 4:30 p.m. Eastern time. Those interested in participating
in the call are invited to dial 1-833-752-3550 or 1-647-846-8290, if calling
internationally, approximately 10 minutes prior to the start of the call. A live
webcast of the conference call will be available online at:
https://corporate.lululemon.com/investors/news-and-events/events-and-
presentations. A replay will be made available online approximately two hours
following the live call for a period of 30 days.
About lululemon athletica inc.
lululemon athletica inc. (NASDAQ:LULU) is a technical athletic apparel,
footwear, and accessories company for yoga, running, training, and most other
activities, creating transformational products and experiences that build
meaningful connections, unlocking greater possibility and wellbeing for all.
Setting the bar in innovation of fabrics and functional designs, lululemon works
with yogis and athletes in local communities around the world for continuous
research and product feedback. For more information, visit lululemon.com.
Non-GAAP Financial Measures
We report certain financial metrics on a constant dollar basis, which is a non-
GAAP financial measure.
A constant dollar basis assumes the average foreign currency exchange rates for
the period remained constant with the average foreign currency exchange rates
for the same period of the prior year. The Company provides constant dollar
changes in its results to help investors understand the underlying performance
of net revenue excluding the impact of changes in foreign currency exchange
rates. Management uses constant currency metrics internally when reviewing and
assessing financial performance.
2
These non-GAAP financial measures are provided in addition to, and not a
substitute for, the corresponding financial measures calculated in accordance
with GAAP. For more information on these non-GAAP financial measures, please see
the section captioned "Reconciliation of Non-GAAP Financial Measures" included
in the accompanying financial tables, which includes more detail on the GAAP
financial measure that is most directly comparable to each non-GAAP financial
measure, and the related reconciliations between these financial measures. The
Company's non-GAAP financial measures may be calculated differently from, and
therefore may not be directly comparable to, similarly titled measures reported
by other companies.
Forward-Looking Statements:
This press release includes estimates, projections, statements relating to the
Company's business plans, objectives, and expected operating results that are
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. In many cases, you can
identify forward-looking statements by terms such as "may," "will," "should,"
"expects," "plans," "anticipates," "outlook," "believes," "intends,"
"estimates," "predicts," "potential" or the negative of these terms or other
comparable terminology. These forward-looking statements also include the
Company's guidance and outlook statements. These statements are based on
management's current expectations but they involve a number of risks and
uncertainties. Actual results and the timing of events could differ materially
from those anticipated in the forward-looking statements as a result of risks
and uncertainties, which include, without limitation: the Company's ability to
maintain its brand value and reputation; its highly competitive market and
increasing competition; its ability to anticipate consumer preferences and
successfully develop and introduce new, innovative and differentiated products;
the acceptability of its products to guests; increasing costs and decreasing
selling prices; its ability to accurately forecast guest demand for its
products; its ability to expand in light of its limited operating experience and
limited brand recognition in new international markets and new product
categories; its ability to attract, manage, and retain highly qualified
individuals; its ability to manage its growth and the increased complexity of
its business effectively; changes in consumer shopping preferences and shifts in
distribution channels; its leasing of retail and distribution space;
seasonality; changes to U.S. tariff and customs policy, including the
elimination of the de minimis exemption; macroeconomic volatility, inflationary
pressures, and shifts in consumer sentiment; global political and economic
instability, including geopolitical conflicts and political polarization; trade
restrictions, tariffs, and customs changes; its ability to comply with trade and
other regulations; changes in tax laws, transfer pricing, or unanticipated tax
liabilities; fluctuations in foreign currency exchange rates; global or regional
public health crises; disruptions of its supply chain; its reliance on a
relatively small number of vendors to supply and manufacture a significant
portion of its products; suppliers or manufacturers not complying with its
Vendor Code of Ethics or applicable laws; fluctuating costs of raw materials and
the cost of producing its products; its ability to deliver its products to the
market and to meet guest expectations if it has problems with its distribution
system; its ability to safeguard against security breaches with respect to its
technology systems; its compliance with privacy and data protection laws; any
material disruption of its technology systems; its ability to have technology-
based systems for its e-commerce business function effectively; imitation by its
competitors; its ability to protect its intellectual property rights;
conflicting trademarks and patents and the prevention of sale of certain
products; actions by stockholders, activists, or consumers; its exposure to
various types of litigation; climate change and related pressures; heightened
scrutiny and legal risks from competing pressures regarding ESG; and other risks
and uncertainties set out in filings made from time to time with the United
States Securities and Exchange Commission and available at www.sec.gov,
including, without limitation, its most recent reports on Form 10-K and Form
10-Q. You are urged to consider these factors carefully in evaluating the
forward-looking statements contained herein and are cautioned not to place undue
reliance on such forward-looking statements, which are qualified in their
entirety by these cautionary statements. The forward-looking statements made
herein speak only as of the date of this press release and the Company
undertakes no obligation to publicly update such forward-looking statements to
reflect subsequent events or circumstances, except as may be required by law.
3
Contacts:
Investor Contacts:
lululemon athletica inc.
Howard Tubin
1-604-732-6124
or
ICR, Inc.
Joseph Teklits
1-203-682-8200
Media Contact:
lululemon athletica inc.
Madi Wallace
1-604-732-6124
4
lululemon athletica inc.
The fiscal year ending January 31, 2027 is referred to as "2026" and the fiscal
year ended February 1, 2026 is referred to as "2025".
Condensed Consolidated Statements of Operations
Unaudited; Expressed in thousands, except per share amounts
Fir…
Sec… Two
Qua… 2026 2025 Qua… 2026 20…
──────────────────────────────────────────────────────────────────────────────
Net $ 2,4… $ 2,5… $ 4,8… $ 4,…
re…
Co…
of 953… 1,0… 2,0… 2,…
go…
so…
Gr… 1,4… 1,4… 2,8… 2,…
pr…
As
a
pe… 60.… 58.… 57.… 58.…
of
net
re…
Se…
ge…
and 1,0… 951… 2,0… 1,…
ad…
ex…
As
a
pe… 41.… 37.… 42.… 38.…
of
net
re…
Am…
of 1,8… 1,7… 3,7… 3,…
in…
as…
In…
fr… 453… 523… 730… 96…
op…
As
a
pe… 18.… 20.… 14.… 19.…
of
net
re…
Ot…
in… 13,… 9,7… 22,… 21…
(e…
net
In…
be…
in… 467… 533… 753… 98…
tax
ex…
In…
tax 138… 162… 229… 29…
ex…
Net $ 329… $ 370… $ 524… $ 68…
in…
Ba…
ea… $ 2.92 $ 3.10 $ 4.59 $ 5.…
per
sh…
Di…
ea… $ 2.92 $ 3.10 $ 4.59 $ 5.…
per
sh…
Ba…
we… 112… 119… 114… 12…
sh…
ou…
Di…
we… 112… 119… 114… 12…
sh…
ou…
5
lululemon athletica inc.
Condensed Consolidated Balance Sheets
Unaudited; Expressed in thousands
August 2, February 1, August 3,
2026 2026 2025
──────────────────────────────────────────────────────────────────────────────
ASSETS
Current assets
Cash and cash equivalents $ 1,389,737 $ 1,807,202 $ 1,155,794
Inventories 1,711,450 1,700,753 1,722,570
Prepaid and receivable 479,948 352,469 323,227
income taxes
Other current assets 364,452 402,277 327,137
Total current assets 3,945,587 4,262,701 3,528,728
Property and equipment, 2,046,363 2,033,720 1,917,361
net
Right-of-use lease assets 1,947,077 1,630,181 1,605,009
Goodwill and intangible 188,370 191,194 182,215
assets, net
Deferred income taxes and
other 357,181 338,947 290,126
non-current assets
Total assets $ 8,484,578 $ 8,456,743 $ 7,523,439
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 346,717 $ 331,421 $ 373,333
Accrued liabilities and 584,912 662,982 423,933
other
Accrued compensation and
related 122,747 187,887 148,895
expenses
Current lease liabilities 366,649 298,724 297,919
Current income taxes 67,375 43,948 26,746
payable
Unredeemed gift card 277,318 316,632 252,334
liability
Other current liabilities 35,933 45,954 34,186
Total current liabilities 1,801,651 1,887,548 1,557,346
Non-current lease 1,774,478 1,499,717 1,464,799
liabilities
Deferred income tax 56,987 52,278 62,400
liability
Other non-current 60,288 55,360 51,615
liabilities
Stockholders' equity 4,791,174 4,961,840 4,387,279
Total liabilities and
stockholders' $ 8,484,578 $ 8,456,743 $ 7,523,439
equity
6
lululemon athletica inc.
Condensed Consolidated Statements of Cash Flows
Unaudited; Expressed in thousands
Cash flows from First Two Quarters
operating activities 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net income $ 524,271 $ 685,477
Adjustments to reconcile
net income to
net cash provided by 65,007 -475,755
operating
activities
Net cash provided by
operating 589,278 209,722
activities
Net cash used in -281,802 -319,960
investing activities
Net cash used in -712,225 -744,823
financing activities
Effect of foreign
currency exchange rate -12,716 26,519
changes on cash and cash
equivalents
Decrease in cash and -417,465 -828,542
cash equivalents
Cash and cash
equivalents, beginning 1,807,202 1,984,336
of
period
Cash and cash
equivalents, end of $ 1,389,737 $ 1,155,794
period
7
lululemon athletica inc.
Reconciliation of Non-GAAP Financial Measures
Unaudited
Constant dollar changes
The below changes show the change compared to the corresponding period in the
prior year.
Second
Quarter
2026
Net Foreign Change in
Revenue Change exchange constant
dollars
United -8 % — % -8 %
States
Canada -11 2 -9
Americas -8 — -8
China 4 -6 -2
Mainland
Rest of 5 1 6
World
Total 4 -2 2
internati…
Total -4 % -1 % -5 %
Second
Quarter
2026
Comparab… Foreign Change in
Sales(1) Change exchange constant
dollars
Americas -12 % — % -12 %
China -2 -6 -8
Mainland
Rest of -4 1 -3
World
Total -3 -3 -6
internat…
Total -9 % -1 % -10 %
__________
(1) Comparable sales includes comparable company-operated store and e-commerce
net revenue. Comparable company-operated stores have been open for at least 12
full fiscal months, or open for at least 12 full fiscal months after being
significantly expanded. Comparable company-operated stores exclude stores which
have been temporarily relocated for renovations or have been temporarily closed.
8
lululemon athletica inc.
Company-operated Store Count and Square Footage (1)
Square footage expressed in thousands
Number of Number of Number Number of
Stores Stores of Stores
Open at Opened Stores Open at
the During Closed the End
Beginning the During of the
of the Quarter the Quarter
Quarter Quarter
3rdQuar… 784 14 2 796
2025
4thQuar… 796 18 3 811
2025
1stQuar… 811 11 6 816
2026
2ndQuar… 816 11 2 825
2026
Total Gross Gross Total
Gross Square Square Gross
Square Feet Feet Square
Feet at Added Lost Feet at
the During During the End
Beginni… the the of the
of the Quarte… Quarter… Quarter
Quarter
3rdQua… 3,511 128 9 3,630
2025
4thQua… 3,630 116 10 3,736
2025
1stQua… 3,736 66 14 3,788
2026
2ndQua… 3,788 100 8 3,880
2026
__________
(1) Company-operated store count and square footage summary excludes retail
locations operated by third parties under license and supply arrangements.
(2) Gross square feet added/lost during the quarter includes net square foot
additions for company-operated stores which have been renovated or relocated in
the quarter.
9