Lululemon reported fourth-quarter net revenue of $3.6 billion, up 1% year-over-year, and diluted EPS of $5.01. For the full fiscal year 2025, revenue increased 5% to $11.1 billion with diluted EPS of $13.26.
Key Highlights
- Total comparable sales unexpectedly increased by 3%, significantly ahead of analyst expectations for a decline, driven by strong international performance.
- Performance diverged sharply by region, with International comparable sales surging 20% while Americas comparable sales declined 1%.
- Gross margin contracted significantly, falling 550 basis points year-over-year to 54.9%.
- The company issued a weak outlook for fiscal 2026, guiding for diluted EPS of $12.10 to $12.30, which implies a decline from the $13.26 reported for fiscal 2025.