Lululemon leans on sustained China growth as US sales flatten

lululemon athletica inc. (NASDAQ: LULU) is scheduled to report 2Q 2026 earnings on Thursday, September 4. Analysts expect net revenues of $2.5 billion, up from $2.4 billion last quarter and $2.2 billion a year ago, according to Visible Alpha consensus.

The Americas remain the company’s largest market, accounting for more than two-thirds of sales, but revenues are forecast to edge up just 2% year-on-year to $1.8 billion. On a comparable sales basis, the region is expected to contract by 1.6%, reflecting weaker discretionary spending and intensifying competition in the premium athletic apparel space, particularly in the US.

China is projected to be the standout performer, with revenues forecast to jump 25% to $444 million, driven by store expansion and rising brand awareness among affluent consumers. Comparable sales in China are expected to grow 11.5%, highlighting the market’s growing importance to Lululemon’s long-term growth strategy. Revenues from other international markets are estimated to climb nearly 9% to $346 million.

Lululemon’s share price has lagged behind the broader retail sector this year, reflecting concerns over slowing North American growth. Thursday’s results will provide a clearer signal on whether China’s momentum can offset softness at home.

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