Lululemon tumbles 14% following Q2 earnings

Lululemon's Q2 earnings missed revenue expectations but beat on earnings per share, boosted by $135 million in tariff refunds. The company lowered its full-year outlook citing challenging dynamics, with U.S. sales falling 12% and international sales declining 3% against expectations of 8.6% growth.

Why it matters: Stock dropped 14% after hours as new CEO Heidi O'Neal, a former Nike executive, prepares to take the helm.