lululemon's Americas Sales Slump Deepens Turnaround Concerns

LULU's North American revenue fell 8% in Q2 FY26, and comparable sales dropped 12%, a sharper deterioration that deepens turnaround concerns. Management guided to a low-double-digit revenue decline for the full fiscal year, setting a heavy bar for any second-half recovery.

The product mix is a core pressure point. Women's leggings sales fell 20% as consumer preferences shifted toward looser silhouettes. Weakening consumer demand compounded the damage. A 12% comp decline against an 8% revenue drop suggests LULU is losing ground in its existing store and channel base, not just facing a tougher top-line backdrop. That is interpretation, not reported fact.

Peers tell a different story. NKE and RL are showing stronger North American momentum, according to the source, while GIII is benefiting from owned brand growth. Regional performance across the group is mixed, but LULU's North American weakness stands out against NKE and RL strength in the same market. Interpretation: the contrast points toward company-specific execution and product issues at LULU rather than a uniform apparel downturn.