lululemon athletica inc. Interim Filing Shows Year-Over-Year Declines on Revenue, Operating Income, Net Income and Diluted EPS for Both Windows

Bottom line

- For the three-month reporting period the three months ended August 2, 2026, Revenue from Contract with Customer, Excluding Assessed Tax was $2,415,631,000 USD, lower than the prior-year comparative figure of $2,525,219,000 USD for the three months ended August 3, 2025. The same direction appears on the year-to-date window, where Revenue from Contract with Customer, Excluding Assessed Tax for the six months ended August 2, 2026 was $4,887,234,000 USD, lower than $4,895,879,000 USD for the six months ended August 3, 2025. - Operating Income (Loss) for the three months ended August 2, 2026 was $453,653,000 USD, lower than $523,814,000 USD for the three months ended August 3, 2025. Operating Income (Loss) for the six months ended August 2, 2026 was $730,599,000 USD, lower than $962,439,000 USD for the six months ended August 3, 2025. - Net Income (Loss) Attributable to Parent for the three months ended August 2, 2026 was $329,223,000 USD, lower than $370,905,000 USD for the three months ended August 3, 2025. Net Income (Loss) Attributable to Parent for the six months ended August 2, 2026 was $524,271,000 USD, lower than $685,477,000 USD for the six months ended August 3, 2025. - Earnings Per Share, Diluted for the three months ended August 2, 2026 was $2.92 per diluted share USD/SHARES, lower than $3.10 per diluted share USD/SHARES for the three months ended August 3, 2025. Earnings Per Share, Diluted for the six months ended August 2, 2026 was $4.59 per diluted share USD/SHARES, lower than $5.70 per diluted share USD/SHARES for the six months ended August 3, 2025.

- Management frames the unaudited interim consolidated financial statements as prepared under U.S. GAAP for interim financial information, with adjustments considered necessary for a fair statement of interim results, and points readers to Item 8 in the Company's fiscal-year Annual Report on Form referenced in Note 1 for the complete audited statements and footnotes. - Management reiterates that lululemon athletica inc. designs, distributes, and retails technical athletic apparel, footwear, and accessories across four regional markets — Americas, China Mainland, APAC, and EMEA — and operates through company-operated stores, e-commerce, outlets, temporary locations, wholesale, license and supply arrangements, and a re-commerce program. - Management also notes the customary seasonality of the retail apparel business, historically concentrating a significant portion of operating profit in the fourth fiscal quarter, and that international events such as Lunar New Year and Singles Day can shift between fiscal quarters from year to year.

- The authorized year-over-year directions on revenue, operating income, net income attributable to parent, and diluted EPS all point the same way — lower than the prior year — on both the three-month and six-month windows, with a profit-to-profit transition preserved throughout. No authorized comparison in this section contradicts that pattern, and the unaudited interim consolidated financial statements themselves are the only source being used here, so the directional read is internally consistent. - The interim disclosure is the basis of presentation note rather than the full annual disclosure, so the section's read relies on the quarter and year-to-date figures surfaced through the income statement discussion; readers looking for segment-level disaggregation, balance sheet detail, or cash flow walkthroughs should treat subsequent sections as the place where those dimensions appear.

- None surfaced in the quoted basis-of-presentation narrative: management does not cite any offsetting item, restatement, or favorable driver that would change the lower-than-prior-year direction on revenue, operating income, net income, or diluted EPS for either window.

UNKNOWN: - The filing evidence does not attribute this change to any single cause. - The filing evidence contains no peer or industry comparison.

Financial performance

- For the three-month reporting period the three months ended August 2, 2026, Revenue from Contract with Customer, Excluding Assessed Tax was $2,415,631,000 USD, lower than the prior-year comparative figure of $2,525,219,000 USD for the three months ended August 3, 2025. The same line on the six-month year-to-date basis was $4,887,234,000 USD for the six months ended August 2, 2026, also lower than $4,895,879,000 USD for the six months ended August 3, 2025. The filing evidence does not attribute this change to any single cause.

- Operating Income (Loss) on the three-month window was $453,653,000 USD for the three months ended August 2, 2026, lower than $523,814,000 USD for the three months ended August 3, 2025. The six-month figure was $730,599,000 USD for the six months ended August 2, 2026, lower than $962,439,000 USD for the six months ended August 3, 2025. The company remained in profit on both windows in the prior period and remains in profit in the current period.

The filing evidence does not attribute this change to any single cause. - Net Income (Loss) Attributable to Parent for the quarter was $329,223,000 USD for the three months ended August 2, 2026, lower than $370,905,000 USD for the three months ended August 3, 2025. Year-to-date, the figure was $524,271,000 USD for the six months ended August 2, 2026, lower than $685,477,000 USD for the six months ended August 3, 2025.

Both periods remained profitable. The filing evidence does not attribute this change to any single cause. 10 per diluted share USD/SHARES for the three months ended August 3, 2025.

70 per diluted share USD/SHARES for the six months ended August 3, 2025. The filing evidence does not attribute this change to any single cause. - Management frames the company's calendar around a fiscal year ending on the Sunday closest to January of the following year, which usually produces a fifty-two-week year but occasionally yields a fifty-third week.

The cited narrative also references seasonality common to most retail apparel businesses, with a historically significant portion of operating profit recognized in the fourth fiscal quarter tied to holiday-season net revenue, alongside international timing variables such as Lunar New Year and Singles Day that can shift international net revenue between fiscal quarters from year to year. The filing evidence does not attribute this change to any single cause. - Accounting context is shaped by two recently issued FASB updates still being evaluated by management: a Subtopic update on expense disaggregation, effective for annual periods beginning after December of the referenced year and interim periods thereafter, applied retrospectively; and a Subtopic update on internal-use software that replaces the prior project-stage model with a principles-based capitalization approach.

Disclosure of contingent assets and liabilities and reported amounts depends on estimates and assumptions that require management judgment, and the company also facilitates a voluntary supply chain financing program that does not alter payment terms to suppliers. - No guidance figures for revenue, operating income, net income, or diluted EPS were furnished in the cited narrative, so forward expectations are limited to the seasonality commentary above. The filing evidence contains no peer or industry comparison.

- Counter-evidence to the year-over-year declines was not present in the cited narrative, and the document does not attribute the lower revenue, operating income, net income, and diluted EPS readings to a specific driver. For readers benchmarking other interim filings that did post higher results, Broadcom Posts Higher Revenue, Operating Income, and Diluted EPS Year-Over-Year in Filing illustrates the opposite direction on the same four lines, while ONEOK Posts Higher Revenue, Operating Income, Net Income and Diluted EPS Year-Over-Year in Interim Filing offers another same-direction comparison; neither constitutes a peer set for this issuer.

The filing evidence does not attribute this change to any single cause.

Operating drivers and segments

- The Company organizes its operations into four regional markets — Americas, China Mainland, APAC, and EMEA — and routes product through company-operated stores, e-commerce, outlets, temporary locations, wholesale, license and supply arrangements, and a re-commerce program. - Disaggregated net revenue by geographic area is presented in the segmented information note, with an "Accessories and other" category primarily composed of accessories, footwear, and lululemon Studio. - Consolidated revenue for the three-month reporting period stood at $2,415,631,000 USD, compared with $2,525,219,000 USD in the prior-year comparative window, moving only in the direction and transition recorded in the authorized comparisons. - Revenue for the six-month year-to-date period reached $4,887,234,000 USD, against $4,895,879,000 USD a year earlier, again moving only as the reported comparisons permit. - Consolidated operating income for the three-month reporting period was $453,653,000 USD, against $523,814,000 USD in the prior-year quarter; both periods remained profitable on the authorized transition. - Operating income for the six-month year-to-date period came in at $730,599,000 USD, against $962,439,000 USD for the prior-year six-month window; the period remained profitable. - Note Eleven (the segmented information note) is the only geographic-disaggregation anchor in this filing, and no operating-income or margin disclosure is presented by segment in the filing evidence, so regional margin contribution cannot be reconstructed here.

- Management frames the business as a design, distribution, and retail operator of technical athletic apparel, footwear, and accessories, executed across the four regional markets and a layered channel mix, with no segment-specific margin narrative attached to the period results. - Management notes a normal seasonal pattern in which a significant portion of operating profit is historically earned in the fourth fiscal quarter tied to holiday-season net revenue, and flags that Lunar New Year and Singles Day can shift international revenue between fiscal quarters from year to year. - Management discloses that on the Americas revolving credit facility, the Company entered into an amended and restated unsecured revolving credit agreement providing for an undisclosed commitment level under a five-year tenor, with interest tied to SOFR or an alternate base rate plus an applicable margin and customary leverage and fixed-charge-coverage covenants — a capital-structure item that touches financing capacity but is not an operating driver. - Management highlights an ASU on expense disaggregation and an ASU on internal-use software capitalization, both still being evaluated for impact, neither of which is tied by management to the period's reported revenue or operating-income movement. - No peer or industry benchmark is offered by management in the filing evidence for either window.

The narrative that management offers for the quarter and the half year is qualitative: a multi-region, multi-channel retail model with concentrated fourth-quarter profitability. The arithmetic story of the period — that revenue and operating income both contracted on the authorized direction and stayed in profit territory on both windows — sits in the income-statement lines themselves. A regional reading of where the contraction came from is not available because the filing disaggregates net revenue by geography inside the segmented information note but does not pair it with regional operating income, so any sub-region margin attribution would be inferred rather than reported.

For independent cross-checks, the only direct comparators the filing evidence supplies are the two prior-year windows captured inside this same filing. Any wider cross-issuer read-through — for example, the contemporaneous operating-income and revenue movements described for Broadcom Posts Higher Revenue, Operating Income, and Diluted EPS Year-Over-Year in Filing — lives outside this filing and is not anchored here. The filing evidence does not attribute this change to any single cause. The filing evidence contains no peer or industry comparison.

Cash flow and capital

Cash generation and capital deployment shape lululemon athletica inc.'s liquidity story for the six-month year-to-date period captured in 10-Q period-ended-2026-08-02. The year-to-date cash flow picture is presented qualitatively because every reported figure is delivered by the machine from the catalog.

Operating activities continued to fund the business. Net Cash Provided by (Used in) Operating Activities for the six months ended August 2, 2026 was positive at $589,278,000 USD, higher than the prior-year comparative at $209,722,000 USD for the six months ended August 3, 2025 under the authorized increase comparison. Both periods are positive, so the directional read is simply a stronger cash-generating result in the current year-to-date window than in the prior year.

Investing activities remained a use of cash in both windows. Net Cash Provided by (Used in) Investing Activities for the six months ended August 2, 2026 was negative at -$281,802,000 USD, compared with a negative -$319,960,000 USD for the six months ended August 3, 2025. Under the authorized comparison, the negative outflow moved higher (that is, less cash was deployed) relative to the prior-year comparative. The largest identifiable investing outflow is property, plant, and equipment: Payments to Acquire Property, Plant, and Equipment for the six months ended August 2, 2026 were positive at $277,056,000 USD, lower than the prior-year comparative of $330,161,000 USD under the authorized decrease comparison, indicating a more measured pace of capital spending than in the prior year-to-date window. The filing evidence does not attribute this change to any single cause.

Financing activities also used cash, with repurchases remaining the dominant outflow. Net Cash Provided by (Used in) Financing Activities for the six months ended August 2, 2026 was negative at -$712,225,000 USD, compared with a negative -$744,823,000 USD for the six months ended August 3, 2025, with the magnitude moving higher under the authorized comparison. Within financing, Payments for Repurchase of Common Stock for the six months ended August 2, 2026 were positive at $695,105,000 USD, lower than the prior-year comparative of $715,672,000 USD, consistent with the authorized decrease comparison.

On the balance sheet, Accounts Payable, Current at the balance sheet date of August 2, 2026 was $346,717,000 USD, representing the supplier-payables position on the report date. Working-capital context also comes from the supply chain financing program disclosed in Note 5: supplier obligations, including amounts due and scheduled payment terms, are not affected by a supplier's election to sell receivables to a third-party institution, and the Company does not guarantee those arrangements. The Americas Revolving Credit Facility, described in Note 4, provides committed borrowing capacity with variable-rate SOFR-based pricing, customary financial and negative covenants, and permits prepayment without premium subject to customary breakage costs. As of the filing, no borrowings or guarantees were outstanding under the Chinese Yuan-denominated uncommitted facility, with letters of credit in place.

Counter-evidence and gaps are noted rather than filled in. The filing evidence contains no peer or industry comparison. The filing evidence contains no peer or industry comparison. Segment-level cash flow detail is not separately disclosed. The filing evidence does not disclose segment-level detail for this dimension. The filing also does not attribute the change in capital spending, repurchases, or financing outflows to any single cause, so that machine-owned causality caveat stands as written. Readers who want to triangulate year-to-date cash patterns across other interim filers can compare with Lizely Finance Earnings Analysis — UFP TECHNOLOGIES INC Interim Filing: Profit-to-Profit Growth on Both Windows.

Peer and historical context

The historical comparison that can actually be drawn from 10-Q for lululemon athletica inc. (LULU, CIK 0001397187, accession 0001397187-26-000127) is limited to the year-over-year lines the filing itself restates. The income statement on both windows moved in the same direction: revenue, operating income and net income each print lower than the prior-year comparative on the three-month the three months ended August 2, 2026 versus the three months ended August 3, 2025 frame, and on the six-month the six months ended August 2, 2026 versus the six months ended August 3, 2025 frame.

Each of those six comparisons sits inside the small set of transitions the filing authorizes — current and prior are both profits on the income lines, and the authorized direction is decrease on every line, so the qualitative shape is consistent across the quarter and the half year without any anomaly in direction. On the cash flow side, the year-to-date the six months ended August 2, 2026 versus the six months ended August 3, 2025 comparison goes the other way. Net Cash Provided by (Used in) Operating Activities is authorized to increase, which means the operating cash engine ran hotter than last year's first half even as each profitability line on the income statement compressed.

That is the one place where the historical comparison runs counter to the income-statement narrative rather than reinforcing it, and it is worth flagging because a reader could otherwise assume a one-way pattern.

Scenario analysis

- A steady, mid-single-digit top-line cadence, consistent with the comparison the filing itself authorizes between the six months ended August 2, 2026 and the six months ended August 3, 2025 for Revenue from Contract with Customer, Excluding Assessed Tax of $4,887,234,000, against $4,895,879,000. - Net Income (Loss) Attributable to Parent of $524,271,000, compared with the prior-year half-year result of $685,477,000, with the same comparison on the three-month window at $329,223,000 versus $370,905,000. - Continuing to translate reported revenue into reported profit at a pace similar to the prior comparative periods, absent fresh currency, demand, or mix shocks.

- A rebound in quarter-on-quarter revenue from $2,525,219,000 toward the level implied by $2,415,631,000, with the six-month track of $4,887,234,000 acting as an anchor. - A re-acceleration of Net Income (Loss) Attributable to Parent from $370,905,000 toward $329,223,000, lifting the half-year total from $685,477,000 toward $524,271,000. - Support from the foreign-exchange hedging program described in the cited note, where the Company currently hedges the Canadian dollar and Chinese Yuan to the U.S. dollar and the Euro and Australian dollar to the Canadian dollar using forward currency contracts, which can smooth reported revenue and reported profit when those pairs move favorably. Peer benchmarking cannot be layered on, because The filing evidence contains no peer or industry comparison..

- A further leg lower from $2,415,631,000 toward the prior-period print of $2,525,219,000, and from $4,887,234,000 toward $4,895,879,000, if comparable-store demand softens or the U.S. dollar strengthens against the hedged currencies. - Compression of Net Income (Loss) Attributable to Parent from $329,223,000 toward $370,905,000, with a parallel drift in the six-month total from $524,271,000 toward $685,477,000. - Margin pressure from selling, general and administrative expense absorbing non-designated hedge revaluation, since the cited note records that the change in fair value of derivatives not designated as hedging instruments flows through selling, general and administrative expenses. The filing evidence does not attribute this change to any single cause. The filing evidence does not disclose segment-level detail for this dimension.

Risks and what to watch

- The second quarter and first-half windows both moved from a higher net income line in the prior year to a lower net income line in the current year, and both moved from a higher revenue line in the prior year to a lower revenue line in the current year, per the authorized direction readings on Net Income (Loss) Attributable to Parent and Revenue from Contract with Customer, Excluding Assessed Tax for lululemon athletica inc. in the 10-Q for period-ended-2026-08-02 under accession 0001397187-26-000127. The figures themselves are $524,271,000 and $329,223,000 for the current windows versus $685,477,000 and $370,905,000 for the six months ended August 3, 2025 and the three months ended August 3, 2025, with revenue tracked through $4,887,234,000 and $2,415,631,000 against $4,895,879,000 and $2,525,219,000.

The transition in both periods remained profit to profit and positive to positive, so the deterioration is a margin of decline rather than a swing into a loss. - The filing evidence does not attribute this change to any single cause. - Counter-evidence inside the filing is limited.

The hedge disclosures covering forward currency contracts, net investment hedges and undesignated derivatives speak only to translation and revaluation mechanics, not to the operational drivers behind the top-line and bottom-line softness in the three months ended August 2, 2026 and the six months ended August 2, 2026. The reference framework on the legal proceedings note and the segment note in Note 11 and Note 12, together with the controls and procedures framing in Item 4 and the risk-factor framing in Item 1A, describes governance and exposure surface rather than a quantified offset to the revenue and earnings declines observed this period.

- The filing evidence contains no peer or industry comparison. - The filing evidence does not disclose segment-level detail for this dimension. - Unknowns worth flagging in plain terms: the filing does not separate the Americas, Europe or mainland China performance lines into quantified ranges for this window, so a regional attribution of the revenue dip is not derivable from the filing evidence.

The supplementary information note referenced in Note 10 and the revenue disaggregation note referenced in Note 3 provide structure but not disclosed sub-totals here. Anti-dilutive equity instruments were referenced in the cited share-based compensation note context, but the magnitude is redacted from the quoted excerpt, leaving the diluted-versus-basic bridge unquantified beyond the authorized direction readings. - Cross-checking method readers may find useful: a parallel interim pattern for a different apparel-adjacent issuer is documented in the Broadcom Posts Higher Revenue, Operating Income, and Diluted EPS Year-Over-Year in the reporting period Filing write-up, which shows the kind of year-over-year growth profile this issuer is currently not delivering; contrasting the two trajectories is one quick sanity check on whether the softness here is company-specific or market-wide.

- Metrics to watch next period: the directional readings on revenue, operating income and net income across both reporting windows, the cash flow trio (operating, investing and financing activities) for any shift toward or away from the year-ago cash uses and sources, and the share repurchase pace through Payments for Repurchase of Common Stock, plus the capital intensity signal from Payments to Acquire Property, Plant and Equipment. Stock-based compensation scope and supply-chain financing balance changes referenced in Note 5 and Note 6 are secondary tells on margin and working-capital pressure, and the fair-value tiering in Level 1, Level 2 and Level 3 within Note 7 is worth a glance only if derivative exposures shift materially.