Lululemon Athletica Inc ( LULU ) reported financial results for the second quarter after the market close on Thursday. Here’s a rundown of the athletic apparel company’s report.

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Q2 Highlights: Lululemon reported second-quarter revenue of $2.53 billion, missing the consensus estimate of $2.54 billion, according to Benzinga Pro. The company reported second-quarter earnings of $3.10 per share, beating estimates of $2.90 per share.

Total revenue was up 7% on a year-over-year basis as Americas net revenue increased 1% and international revenue climbed 22%. Total comparable sales increased 1% year-over-year.

Lululemon's total store count was 754 at quarter's end after opening 14 new company-operated stores during the quarter. Inventories were up 21% year-over-year to $1.7 billion. 

Lululemon ended the quarter with approximately $1.2 billion in cash and cash equivalents.

“While we continued to see positive momentum overall in our international regions in the second quarter, we are disappointed with our U.S. business results and aspects of our product execution,” said Calvin McDonald, CEO of Lululemon.

“We have closely assessed the drivers of our underperformance and are continuing to take the necessary actions to strengthen our merchandise mix and accelerate our business.”

What’s Next: Lululemon expects third-quarter revenue of $2.47 billion to $2.50 billion versus estimates of $2.57 billion. The company anticipates third-quarter earnings of $2.18 to $2.23 per share versus estimates of $2.94 per share.

Lululemon also lowered its full-year 2025 outlook. Lululemon now expects full-year revenue of $10.85 billion to $11 billion and full-year earnings of $12.77 to $12.97 per share. Analysts had been anticipating full-year revenue of $11.18 billion and earnings of $14.52 per share, per Benzinga Pro.

Lululemon’s management team will further discuss the quarter on an earnings call with investors and analysts at 4:30 p.m. ET.

LULU Price Action: Lululemon shares were down 12.54% in after-hours, trading at $180.25 at the time of publication on Thursday, according to Benzinga Pro.

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