Companies /Consumer Cyclical

Lululemon Athletica Inc

NASDAQ: LULU Apparel Retail
$121.77
▲ $1.70 (+1.42%) today
Markets closed · 9:24am ET

Q3 2026 Earnings

Reported Dec 11, 2025, 4:08pm ET · SEC source
$2.59
Beat +17.27%
EPS · est. $2.21
$2.6B
Beat +3.57%
Revenue · est. $2.5B
−1.5%
Trailing market
LULU vs S&P since report
6 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 2026 Results

Lululemon posted a stronger-than-expected third quarter for fiscal 2025, delivering earnings per share of $2.59 against a consensus estimate of $2.21, a 17.27% beat, while revenue of $2.57 billion topped the $2.48 billion estimate by 3.57% and grew 7.1% year-over-year. The standout driver was international momentum, with China Mainland comparable sales surging 24% and Rest of World up 9%, even as the Americas remained a persistent drag with comparable sales declining 5%. Yet the headline numbers came wrapped in complexity: gross margin contracted 290 basis points to 55.6% and diluted EPS actually fell from $2.87 a year ago, underscoring that <a href="https://247wallst.com/investing/2025/12/09/lululemon-turned-1000-into-571-over-three-years-while-staying-profitable/">recent profitability pressures</a> are far from resolved. The quarter was further clouded by CEO Calvin McDonald's announced departure, with interim co-CEOs stepping in during a leadership search. Looking ahead, the company guided Q4 revenue to $3.50 to $3.58 billion and full-year diluted EPS to $12.92 to $13.02, with guidance absorbing an estimated $210 million operating income hit from tariffs and the removal of the de minimis exemption.

Key Takeaways
  • Strong international growth, particularly China Mainland comparable sales up 24% (25% constant dollar)
  • International net revenue increased 33% year-over-year
  • 12 net new company-operated stores opened during the quarter, ending with 796 stores
  • Total comparable sales increased 1% (2% on constant dollar basis)

“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, lululemon expects net revenue of $3.500 billion to $3.585 billion, representing a decline of 3% to 1% as reported or growth of 2% to 4% excluding the 53rd week of fiscal 2024. Diluted EPS is expected to be $4.66 to $4.76. For full-year fiscal 2025, net revenue is expected to be $10.962 billion to $11.047 billion (growth of 4%, or 5% to 6% excluding the 53rd week), with diluted EPS of $12.92 to $13.02. Both assume a tax rate of approximately 30%. Guidance includes an estimated $210 million reduction in operating income from higher tariffs on U.S. imports and the removal of the de minimis exemption, net of mitigation efforts. The company continues to expect improvements in its U.S. business action plan to show impact in 2026. Guidance does not reflect potential future share repurchases.

LULU YoY Financials

Q3 2026 vs Q3 2025 · SEC filings Q3 2025 Q3 2026
$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.