Lululemon's latest disclosed second-quarter results fell short of market expectations, and the stock price tumbled 18.17% after the market closed, dropping to $99.65, below the previous 52-week low of $104.44. The company also lowered its guidance for the third quarter and full-year performance, further fueling market concerns about its short-term growth prospects.

The company disclosed that its net revenue for the second fiscal quarter was $2.42 billion, a year-on-year decrease of 4%, which fell short of analysts' expectations of $2.46 billion; same-store sales declined by 9%. Among them, same-store sales in the American market dropped by 12%, while those in the international market decreased by 3%; when calculated using a fixed exchange rate, the decline in the international market was 6%.

North American sales continue to weaken.

Management stated during the financial report conference call that weak demand in North America was one of the main reasons for the poor performance this quarter. The company also mentioned that market feedback after the launch of new products was unstable, and a slowdown in core categories such as skinny pants also put pressure on sales.

The interim co-chairperson, also serving as the CFO Meghan Frank, also mentioned that negative comments on social media had an impact on this quarter's performance. Despite the pressure on revenue, Lululemon's gross margin still increased by 200 basis points to 60.5%, with a tariff refund of $134.5 million providing significant support.

Full-year revenue guidance lowered

The company disclosed that for the third fiscal quarter, it expects net revenue to range from $2.29 billion to $2.32 billion, a year-over-year decrease of 10% to 11%; diluted earnings per share are expected to be between $0.93 and $0.98. In terms of net profit, the second fiscal quarter saw $329.2 million, or $2.92 per share, which is lower than the $370.9 million and $3.10 per share in the same period last year.

For the whole year, Lululemon has lowered its net revenue guidance from the previous range of $11 billion to $11.15 billion to $10.35 billion to $10.5 billion; the annual earnings per share forecast has also been reduced from $10.95 to $11.15 to $9.48 to $9.73.

Heidi O and Neill will take over next week.

The company disclosed that Heidi O and Neill will officially take on the positions of CEO next week. Prior to this, Meghan Frank and Andr along with Maestrini have been responsible for the company's operations in the capacity of temporary co-managers. The market is also watching to see if the management transition will help stabilize the company's sales performance and brand momentum.

As of the end of this quarter, the company held approximately $1.4 billion in cash and had an available credit line of $593.7 million. During the quarter, 2.7 million shares were repurchased for about $330 million; at the same time, 9 new stores were added, bringing the total number of global stores to 825.