To date, 171 of the 185 companies in our Retail/Restaurant Index have reported their EPS results for Q2 2026, representing 93% of the index. Of those companies that have reported their quarterly results, 74% announced profits that beat analysts’ expectations, while 4% delivered on-target results and 22% reported earnings that fell below estimates. The Q2 2026 blended earnings growth estimate now stands at 70.7%.
The blended revenue growth estimate for the 171 companies in this index is 7.8% for Q2 2026. Of those companies that have reported their quarterly results so far, 71% announced revenue that exceeded analysts’ expectations and the remaining 29% reported that their revenue fell below analysts’ forecasts.
Exhibit 1: LSEG Earnings Dashboard
Source: LSEG I/B/E/S
This week in retail
As predicted by StarMine, Five Below exceeded Q2 earnings expectations and delivered a positive surprise. The value retailer posted stronger-than-expected results across the board, beating earnings, revenue, and same-store sales (SSS) estimates. Earnings surged 107.4% from a year ago, while revenue increased 22.8%. Five Below also delivered its fifth consecutive quarter of double-digit SSS growth, underscoring continued momentum with value-conscious consumers.
The company continues to invest in the in-store experience, including re-merchandising its former Five Beyond space into immersive product “Worlds” and improving store sightlines to make merchandise easier to discover. Management also highlighted continued market-share gains and strong repeat business, suggesting that Five Below is not only attracting new shoppers but also building greater customer loyalty.
Meanwhile, Lululemon is scheduled to report Q2 earnings after the market close today, with expectations pointing to a much more challenging quarter. Analysts polled by LSEG currently expect earnings to decline 42.3%, alongside a 2.7% drop in revenue and a 4.8% decline in SSS.
The yoga-apparel maker continues to face weakness in the U.S. and China, partially offset by stronger performance in other international markets. In the U.S., intensifying competition and shifting consumer preferences have contributed to market-share pressure. Against this backdrop, Lululemon has become more promotional than it was historically, when limited discounting was an important part of maintaining the brand’s premium positioning.
Taken together, the contrast is striking: Five Below continues to gain market share by delivering a compelling value proposition and enhancing the shopping experience, while Lululemon is contending with softer demand, intensifying competition, and increased promotional activity. The divergence reinforces a key theme this earnings season: in an increasingly selective consumer environment, strong brand recognition alone is no longer enough. Retailers must also deliver the right product, value, and experience to drive growth.
Here are the latest Q2 2026 earnings and same store sales retail estimates:
Exhibit 2: Same Store Sales and Earnings Estimates – Q2 2026
Source: LSEG I/B/E/S
