Lululemon Q1 FY2026 revenue grew 4% to $2.5B; diluted EPS fell to $1.69

Lululemon reported Q1 FY2026 revenue growth of 4% ($2.5B) with comparable sales up 1%, but diluted EPS declined 35% to $1.69 and gross margin contracted 410 basis points to 54.2%. The company is navigating headwinds and adjusting full-year guidance, signaling operational challenges despite international strength with 22% revenue growth offsetting 3% Americas decline.