LULU · PEAD ↓ 80

Lululemon reported Q2 FY2026 EPS of $2.06 on 2026-09-03 (after market close), beating the $1.79 consensus by $0.27 (+15.1%).

Print-day reaction was a modest +1.4% versus the prior close — the market absorbed the EPS beat with measured optimism, leaving the stock near but not far above its pre-earnings level. The overnight gap into T+1 told a sharply different story, however: the stock cratered -19.4% from the T+0 close to the T+1 open, suggesting after-hours commentary — likely guidance or margin detail — overwhelmed the headline EPS beat. Over Days 1–3 the drift added a further -0.9%, with no meaningful recovery materialising as sellers maintained control. Cumulative abnormal return of -16.6% versus SPY.US firmly places this in PEAD short territory, with drift confirming and extending the post-gap reversal; the holding window runs through 2026-12-01.