Nomura reports Lululemon (LULU.O) posted FY2026 Q2 constant-currency revenue
down 5% YoY to $2.42bn, missing the $2.46bn consensus. Operating income fell 13%
YoY to $454m; operating margin dropped 1.9ppt to 18.8%. Management cut FY2026
revenue guidance to a 5–7% decline YoY, implying ~$10.35–10.5bn vs. market
expected $10.98bn. Management flagged a slowdown in mainland China, saying
negative social-media commentary on its China promotions and absence from
post-618 discounting hurt e-commerce performance; it expects intense competition
in North America and China, will prioritize full-price growth in China and will
participate normally in Double 11, and still views mainland China as an
expansion opportunity. Within its China sportswear coverage, Nomura prefers Anta
(02020.HK), citing structural upside from outdoor and emerging sports and a
multi-brand strategy that should help navigate industry competition.
