Companies /Consumer Cyclical

Lululemon Athletica Inc

NASDAQ: LULU Apparel Retail
$94.46
▼ $1.40 (−1.46%) today
Markets closed · 8:59am ET

Q3 2025 Earnings

Reported Dec 11, 2025, 4:08pm ET · SEC source
$2.59
Beat +17.27%
EPS · est. $2.21 GAAP
$2.6B
Beat +3.57%
Revenue · est. $2.5B
−1.5%
Trailing market
LULU vs S&P since report
8 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−8%−4%0+4%Dec 11Dec 12report 4:08pm ETearnings−1.1%+3.1%
−8%−4%0+4%Dec 11Dec 12earnings−1.1%+3.1%
LULU +3.1%S&P 500 −1.1%
−8%−4%0+4%Dec 11Dec 12report 4:08pm ETearnings−2.1%+3.1%
−8%−4%0+4%Dec 11Dec 12earnings−2.1%+3.1%
LULU +3.1%NASDAQ −2.1%
−6%0+6%Dec 10Dec 19report 4:08pm ETearnings−1.4%+1.9%
−6%0+6%Dec 10Dec 19earnings−1.4%+1.9%
LULU +1.9%S&P 500 −1.4%
−6%0+6%Dec 10Dec 19report 4:08pm ETearnings−1.7%+1.9%
−6%0+6%Dec 10Dec 19earnings−1.7%+1.9%
LULU +1.9%NASDAQ −1.7%
+9.60%
Day of report
+0.64%
Next session
+2.19%
One week
+0.02%
30 days

S&P 500 over the same 30 days: +1.54%.

Did LULU Beat Earnings? Q3 2025 Results

Lululemon delivered a stronger-than-expected third quarter, beating on both top and bottom lines even as deepening margin pressure and a surprise CEO departure reshaped the narrative. Net revenue climbed 7.1% year-over-year to $2.57 billion, ahead of the $2.48 billion consensus, while GAAP diluted EPS of $2.59 cleared the $2.21 estimate by 17.27%, though it still fell from $2.87 in the prior-year period as gross margin contracted 290 basis points to 55.6% and operating margin slipped 350 basis points to 17.0%. The headline beat masked a sharp geographic split, with Americas comparable sales declining 5% even as international revenue surged 33% and China Mainland comps rose 24%. Adding to investor uncertainty, CEO Calvin McDonald announced plans to step down in January 2026, with CFO Meghan Frank and Chief Commercial Officer André Maestrini stepping in as interim co-CEOs, a transition that arrives precisely as the company absorbs an estimated $210 million operating income headwind from U.S. tariffs and de minimis rule changes. Management guided Q4 revenue of $3.50 billion to $3.59 billion and full-year EPS of $12.92 to $13.02, with activist investor attention adding further pressure on incoming leadership to stabilize the U.S. business.

Key Takeaways
  • International revenue growth of 33% driven by China Mainland (46% revenue growth, 24% comparable sales growth) and Rest of World (19% revenue growth)
  • Comparable sales increased 1% overall, or 2% on a constant dollar basis
  • Americas comparable sales declined 5%, weighing on overall performance
  • Gross margin declined 290 basis points to 55.6%
  • Operating margin declined 350 basis points to 17.0%
  • SG&A expenses increased as a percentage of revenue to 38.5% from 38.0%

“In the third quarter, our teams remained focused on driving improvements within our U.S. business and maintaining momentum in our international regions. We are beginning to make progress against our action plan and continue to expect to see the impact of this work in 2026. As we enter the holiday season, we are encouraged by our early performance, and I would like to thank all our lululemon team members for their hard work and dedication to our guests and communities.”

Lululemon CEO, on the earnings call

Forward Guidance & Outlook

For Q4 fiscal 2025, the company expects net revenue of $3.500 billion to $3.585 billion, representing a decline of 3% to 1% (or growth of 2% to 4% excluding the 53rd week of fiscal 2024), and diluted EPS of $4.66 to $4.76. For full-year fiscal 2025, net revenue is expected at $10.962 billion to $11.047 billion (growth of 4%, or 5% to 6% excluding the 53rd week), and diluted EPS of $12.92 to $13.02. Guidance includes an estimated $210 million reduction in operating income from higher U.S. tariffs and removal of the de minimis exemption, net of mitigation efforts. Tax rate assumed at approximately 30%. Guidance does not reflect potential future share repurchases. By geography for full-year fiscal 2025: United States expected net revenue change of (2)% to (3)%, Canada (2)%, China Mainland 20% to 23%, and Rest of World 17% to 19%.

LULU YoY Financials

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$0$800.0M$1.6B$2.4B$2.4B$2.6BRevenue$1.4B$1.4BGross Profit$490.6M$435.9MOperating Income$351.9M$306.8MNet Income
$0$800.0M$1.6B$2.4BRevenueGross ProfitOperating IncomeNet Income

Figures from SEC filings and company reports. Not investment advice.