For the fiscal year ending 1 February 2026, the retailer reported a 5% increase in net revenue, reaching $11.1bn, driven by double-digit revenue growth in its international operations
These results surpassed the company’s projected net revenue range of $10.96bn to $11.05bn for the period.
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Lululemon interim co-CEO, president, and chief commercial officer André Maestrini said: “Throughout 2025, we reported double-digit revenue growth in our international business and are taking action to incorporate learnings from across our regions to drive forward our strategies. Our teams are energised by the initial response to our recent product launches and continue to deliver successful guest activations globally.”
Key metrics from FY25
Lululemon’s gross profit remained steady at $6.3bn, while gross margin declined by 260 basis points to 56.6% over the year.
By region, the Americas’ net revenue decreased 1% and international sales increated 22% or 21% on a constant dollar basis.
Comparable sales in the Americas decreased 3%, whilst international comparable sales increased 15% or 14% on a constant dollar basis.
Income from operations dropped by 12% to $2.2bn, with operating margin down by 380 basis points to 19.9%.
The retailer’s diluted earnings per share (EPS) were $13.26, compared to $14.64 in the previous year, but still above the projected range of $12.92 to $13.02.
Lululemon added 44 net new company-operated stores during the year, ending with 811 stores.
Key metrics from Q4
In the fourth quarter (Q4), net revenue increased by 1% to $3.6bn, exceeding expectations of $3.50bn to $3.59bn.
Gross profit fell by 8% to $2.0bn, and gross margin decreased by 550 basis points to 54.9%.
Americas net revenue decreased 4% or 5% and, whereas international revenue increased 17% or 14%. Americas comparable sales dropped 1% or 2% and international comparable sales jumped 20% or 16%.
The company saw its income from operations drop 22% to $812.3m, with operating margin declining by 660 basis points to 22.3%. Diluted EPS for the quarter were $5.01, compared to $6.14 in the same period last year.
Outlook for fiscal 2026
For the first quarter of fiscal 2026, Lululemon expects net revenue between $2.40bn and $2.43bn, representing growth of 1% to 3%.
The company anticipates diluted EPS to be between $1.63 and $1.68, based on an estimated tax rate of approximately 31.5%.
For the full year of fiscal 2026, net revenue is projected to be in the range of $11.35bn to $11.50bn, indicating growth of 2% to 4%.
Diluted earnings per share are expected to be between $12.10 and $12.30 for the year, assuming a tax rate of about 30%.
In December last year, Wilson nominated three independent director candidates, namely Marc Maurer, Laura Gentile, and Eric Hirshberg and submitted a proposal to declassify the Board on 29 December.
