Lululemon (LULU) reported fourth-quarter earnings per share of $5.01, exceeding the $4.78 analyst estimate. Revenue reached $3.64 billion, surpassing the projected $3.57 billion.
The company issued first-quarter revenue and full-year earnings forecasts that fell below market expectations. Operating margins dropped to 22.3% from 28.9% in the prior year's quarter. Management attributed the decline to higher tariffs and ongoing challenges in the North American market.
Lululemon shares declined as investors focused on flat year-over-year sales projections. Analysts view the weak outlook as a potential indicator of broader cooling in consumer discretionary spending.