A softer U.S. market for apparel, ongoing tariff impacts, and product staleness in its lounge and social offerings all negatively impacted Q2 results at Lululemon, which fell short of its revenue guidance for the period despite exceeding its EPS guidance. Net income decreased 6% to $370,905,000 from $392,922,000, while total revenues rose 7% to $2,525,219,000 from $2,371,078,000. Digital sales improved by 7% to $1 billion. Men’s sales were up 6% year-over-year, with women’s up by 5% and accessories/other increasing by 15%.

Gross margin slipped by 110 basis points to 58.5%, pulled down ... Log in to view full article.