Reported results
- Net revenue decreased 4% to $2.4 billion, or decreased 5% on a constant dollar basis
- Comparable sales decreased 9%, or 10% on a constant dollar basis
- Gross profit decreased 1% to $1.5 billion with gross margin increasing 200 basis points to 60.5% (includes $134.5 million of tariff refunds which increased gross margin by 560 basis points)
- Income from operations decreased 13% to $453.7 million with operating margin decreasing 190 basis points to 18.8% (tariff refunds of $134.5 million increased operating margin by 560 basis points)
- Diluted earnings per share were $2.92 compared to $3.10 in Q2 2025 (includes $0.86 per share related to tariff refunds and associated interest, net of tax)
- Company repurchased 2.7 million shares for $330.0 million and opened nine net new company-operated stores, ending with 825 stores
Guidance
- Q3 2026: net revenue expected in range of $2.290 billion to $2.320 billion, representing a decline of 10% to 11%
- Q3 2026: diluted earnings per share expected in range of $0.93 to $0.98, assuming tax rate of approximately 30%
- Full year 2026: net revenue expected in range of $10.350 billion to $10.500 billion, representing a decline of 5% to 7%
- Full year 2026: diluted earnings per share expected in range of $9.48 to $9.73, assuming tax rate of approximately 30%
Notes
During Q2 2026, company received International Emergency Economic Powers Act (IEEPA) tariff refunds of $134.5 million plus associated interest of $4.1 million. The 2026 outlook includes $0.86 per share from tariff refunds and associated interest, net of tax, recognized in Q2 2026, but does not reflect any further potential tariff refunds.
Price and volatility reaction
The stock moved -17.4% on the print. No front-expiry chain was on file, so there is no straddle expected move. 30-day ATM implied volatility moved -16.4 vol points across the event (constant-maturity series — not the front-week crush).
| Measure | Value | Basis |
|---|---|---|
| Close before release | 121.77 | 2026-09-03 |
| Close after release | 100.61 | 2026-09-04 |
| Realised move | -17.4% | close to close |
| 30d ATM IV change | -16.4 vol pts | constant-maturity series, not the front expiry |
Source
The figures above come from the earnings release the company filed with the SEC on 2026-09-03 (8-K, Item 2.02). Read the original filing on sec.gov.