Reported results
- Q2 2026 revenue of $2.097 billion decreased 3% compared to prior year on a reported basis and 3% on a constant currency basis, exceeding constant currency guidance of a 4% to 5% decrease.
- Q2 2026 GAAP operating margin of (9.1)% included a $439 million pre-tax noncash goodwill impairment charge; non-GAAP operating margin of 11.1% exceeded guidance of approximately 9.5%, with approximately 510 basis point benefit from $107 million tariff refunds.
- Q2 2026 GAAP diluted EPS of $(2.23) included the goodwill impairment charge; non-GAAP diluted EPS of $3.70 exceeded guidance of $3.00 to $3.10, with approximately $1.80 per share benefit from tariff refunds.
- Q2 2026 gross margin expanded 530 basis points to 63.0% from 57.7% in prior year, with approximately 510 basis point benefit from tariff refunds; the remaining 20 basis point increase reflected lower product costs and favorable mix, partially offset by increased promotional environment in EMEA.
- Q2 2026 inventory decreased 3% to $1.738 billion compared to prior year; owned and operated digital commerce revenue increased 4% on a reported basis (3% on a constant currency basis).
- Full year 2026 non-GAAP operating margin guidance reaffirmed at approximately 8.8%; full year non-GAAP EPS guidance reaffirmed in a range of $11.80 to $12.10.
Guidance
- Full year 2026 revenue: reaffirmed outlook of approximately flat on a reported basis (decrease slightly on a constant currency basis)
- Full year 2026 non-GAAP operating margin: reaffirmed outlook of approximately 8.8%
- Full year 2026 non-GAAP diluted EPS: reaffirmed outlook in a range of $11.80 to $12.10
- Q3 2026 revenue: projected to decrease low single-digits compared to prior year (decrease low single-digits on a constant currency basis)
- Q3 2026 non-GAAP operating margin: projected to be approximately 7.5%
- Q3 2026 non-GAAP diluted EPS: projected to be in a range of $2.50 to $2.65
Notes
Q2 2026 results include a pre-tax noncash goodwill impairment charge of $439 million recorded on a GAAP basis, primarily due to changes in valuation assumptions associated with geopolitical and macroeconomic factors, which was excluded from non-GAAP results. Q2 2026 included a net gain of $25.4 million related to the Growth Driver 5 Actions (consisting of a $25 million gain on the sale of a warehouse and distribution center offset by $17 million restructuring costs), and tariff refunds of $107 million received during the period, both of which benefited reported results on both GAAP and non-GAAP bases.
Price and volatility reaction
The stock moved +0.2% on the print. No front-expiry chain was on file, so there is no straddle expected move. 30-day ATM implied volatility moved -20.6 vol points across the event (constant-maturity series — not the front-week crush).
| Measure | Value | Basis |
|---|---|---|
| Close before release | 72.29 | 2026-09-02 |
| Close after release | 72.46 | 2026-09-03 |
| Realised move | +0.2% | close to close |
| 30d ATM IV change | -20.6 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 2026-09-02 (8-K, Item 2.02). Read the original filing on sec.gov.
