Lululemon (LULU) Q4 2025 Earnings
How Did LULU Stock React to Q4 2025 Earnings?
S&P 500 over the same 30 days: +7.15%.
Did LULU Beat Earnings? Q4 2025 Results
Yes. Lululemon reported Q4 2025 earnings of $5.01 a share on Mar 17, 2026, beating the $4.78 consensus estimate by 4.8%. Revenue was $3.6B against a $3.6B estimate.
Lululemon closed out fiscal 2025 with a fourth quarter that cleared Wall Street's bar on both top and bottom lines, though the underlying results told a more complicated story. GAAP diluted EPS of $5.01 beat the $4.78 consensus by 4.80%, while revenue of $3.64 billion edged past estimates by 1.78%, rising just 0.8% year over year as a calendar shift distorted the comparison. The headline beat masked significant margin deterioration: gross margin contracted 550 basis points to 54.9% and operating margin fell 660 basis points to 22.3%, reflecting heightened promotional activity and softening demand in North America, where comparable sales slipped 1%. International operations provided the clearest bright spot, with comparable sales jumping 20% in the quarter, led by 30% comparable growth in China Mainland. Despite the beats, the stock recently touched a 52-week low, reflecting investor concern over a muted 2026 outlook; full-year guidance calls for revenue of $11.35 billion to $11.50 billion and GAAP diluted EPS of $12.10 to $12.30, implying further earnings pressure as the company navigates a North American reset under its newly installed interim co-CEO structure.
- International revenue growth of 17% in Q4 (14% constant dollar)
- China Mainland comparable sales growth of 30% (26% constant dollar) in Q4
- E-commerce revenue growth of 5% in Q4
- Comparable sales increased 3% overall in Q4 (2% constant dollar)
- 15 net new company-operated stores opened in Q4, ending with 811 total stores
“We are pleased to achieve fourth quarter revenue and EPS results ahead of our expectations. As we begin our new fiscal year, we are focused on executing on our action plan, offering new and differentiated products to our guests, and elevating their experiences with lululemon. Driving improvement in our full-price sales over the course of 2026 is also a key priority, particularly in North America, and will enable us to enhance our brand health and deliver long-term growth and value creation for shareholders.”
Lululemon CEO, on the earnings call
What Was Lululemon's Outlook in Q4 2025?
For Q1 2026, the company expects net revenue of $2.400B to $2.430B (1%–3% growth) and diluted EPS of $1.63 to $1.68, assuming a 31.5% tax rate. For full fiscal year 2026, the company expects net revenue of $11.350B to $11.500B (2%–4% growth) and diluted EPS of $12.10 to $12.30, assuming a 30% tax rate. Guidance excludes potential future share repurchases and does not incorporate future unknown impacts including tariffs and macroeconomic trends. Driving improvement in full-price sales, particularly in North America, is a key priority for 2026.
LULU YoY Financials
| Metric | Q4 2025 | Q4 2024 | Year over year |
|---|---|---|---|
| Revenue | $3.6B | $3.6B | +0.8% |
| Gross Profit | $2.0B | $2.2B | −8.4% |
| Operating Income | $812.3M | $1.0B | −22.1% |
| Net Income | $586.9M | $748.4M | −21.6% |
Figures from SEC filings and company reports. Not investment advice.