Lululemon Athletica Reports Q4 and Full-Year Fiscal 2025 Results
Lululemon Athletica, a leader in athletic apparel, recently unveiled its financial results for the fourth quarter and the full fiscal year ending February 1, 2026. The company reported a 1% increase in revenue, totaling $3.6 billion in the fourth quarter.
Fourth Quarter Highlights
- Net revenue: $3.6 billion
- Comparable sales rose by 3% overall
- International net revenue increased by 17%
- Gross profit decreased to $2.0 billion, with a gross margin of 54.9%
- Diluted earnings per share (EPS): $5.01
Meghan Frank, Interim Co-CEO, expressed satisfaction with the quarterly results and emphasized the company’s focus on enhancing the consumer experience and improving sales in North America. Meanwhile, André Maestrini, Interim Co-CEO and Chief Commercial Officer, noted significant growth in the international market, which saw a 22% increase in revenue during the fiscal year.
Full-Year Performance
- Total revenue for 2025 reached $11.1 billion, a 5% increase from 2024
- International revenue increased by 22%, while the Americas saw a 1% decrease
- Full-year diluted EPS was reported at $13.26
- Gross profit remained stable at $6.3 billion, though the gross margin dropped to 56.6%
The company repurchased 5 million shares for $1.2 billion in the past year and opened 44 new stores, bringing the total to 811. As of the close of fiscal 2025, Lululemon had $1.8 billion in cash and $593.6 million available under its revolving credit line. Inventories rose 18% to $1.7 billion, with a unit increase of 6%.
Fiscal 2026 Outlook
Looking ahead, Lululemon forecasts first-quarter net revenue to range between $2.400 billion and $2.430 billion. This represents a growth of 1% to 3%. EPS is expected to range from $1.63 to $1.68 per share. For the full fiscal year 2026, projected revenue is between $11.350 billion and $11.500 billion, representing growth of 2% to 4%.
Lululemon’s leadership remains optimistic about growth opportunities, particularly within North America. The outlook incorporates an anticipated tax rate of approximately 30%, but does not include potential share repurchases.
Conclusion
With a solid fiscal year closing and promising projections for 2026, Lululemon Athletica is positioned to continue its growth trajectory in the athletic apparel industry. Investors and stakeholders look forward to how the company will leverage its strengths in product offerings and international expansion.
