Lululemon reported first quarter revenue of $2.5 billion, a 4% increase year-over-year, and diluted EPS of $1.69. The results were driven by strong international performance, which was offset by persistent weakness in the Americas region, leading to significant margin contraction and a reduced outlook for the full fiscal year.
Key Highlights
- Net revenue in the Americas region decreased by 3%, with comparable sales falling 5% as the company navigates headwinds in its largest market.
- International net revenue showed continued strength, increasing by 22% (or 16% on a constant dollar basis), partially offsetting domestic weakness.
- Gross margin contracted by 410 basis points to 54.2%, while operating margin decreased 730 basis points to 11.2%.
- The company lowered its full-year 2026 revenue guidance to a range of $11.0 billion to $11.15 billion, which now represents a year-over-year decline of up to 1%.