Lululemon shares fell roughly 20% to $100.07 after the athleisure retailer sharply reduced its FY2026 outlook, reaching their lowest level in about eight years and bringing the year-to-date decline to 51.85%. Q2 revenue fell 4.3% year over year to $2.42 billion, below the $2.46 billion consensus estimate, while global comparable sales dropped 9%, including a 12% decline in the Americas and a 2% decline in mainland China. Leggings sales fell approximately 20%. GAAP EPS of $2.92 exceeded consensus but included an $0.86-per-share benefit from a $134.5 million IEEPA tariff refund. Full-year revenue guidance was reduced to $10.35 billion-$10.50 billion, implying a 5%-7% decline rather than the previously expected 2%-4% growth, while EPS guidance fell to $9.48-$9.73 from $12.10-$12.30. Third-quarter revenue is expected to decline 10%-11%, with EPS of 93 cents to 98 cents versus Wall Street’s $2.40 expectation. CNBC’s Jim Cramer said the stock remains too risky to buy, citing competitive pressure, changing fashion trends and the need for evidence that O’Neill can stabilize sales and restore international momentum. O’Neill took over Tuesday after interim co-CEO leadership following Calvin McDonald’s departure at the end of January, and is expected to conduct a strategic review.