Lululemon Athletica Inc. plunged $20.98, or 17.23%, to $100.79, after the athleisure retailer cut its full-year guidance for the third time this fiscal year, overshadowing a quarterly earnings beat and deepening a difficult stretch for the once-high-flying apparel company.

Lululemon reported fiscal second-quarter earnings of $2.92 per share, well ahead of the $1.80 analysts had expected, according to estimates compiled by LSEG. Revenue for the quarter came in at $2.415 billion, down 4% from the same period a year earlier and slightly below the $2.461 billion Wall Street had projected. Comparable sales fell 9% to 10% globally during the quarter, depending on the specific measure cited, with North America continuing to serve as the company's weakest region, posting an 8% revenue decline.

Much of the earnings beat was driven by a one-time benefit rather than underlying operational strength. Lululemon received $134.5 million in tariff refunds under the International Emergency Economic Powers Act, along with an additional $4.1 million in associated interest, during the quarter, a windfall that significantly boosted reported profitability even as core sales trends continued to deteriorate.

The steepest concern for investors centered on Lululemon's updated full-year guidance. The company now expects full-year net revenue in the range of $10.35 billion to $10.5 billion, representing a decline of 5% to 7% compared with the prior year. Full-year adjusted earnings per share guidance was cut to a range of $9.48 to $9.73, down sharply from the company's previous guidance of $10.95 to $11.15 per share. For the current fiscal quarter, Lululemon guided for revenue between $2.29 billion and $2.32 billion, representing a 10%........

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