Key Takeaways
- Lululemon delivered Q4 earnings per share of $5.01, surpassing analyst expectations of $4.76–$4.79 by approximately 5%
- Quarterly revenue reached $3.64 billion, exceeding projections and showing a modest increase from last year’s $3.61 billion
- China Mainland sales surged 28%, offsetting stagnant North American performance
- Online sales increased 9% compared to the prior year, reaching $1.9 billion
- Shares gained 1.29% in after-hours trading, though they remain down approximately 51% over the trailing 12 months
Lululemon exceeded analyst projections with its fourth-quarter fiscal 2025 financial results announced on March 17. The performance demonstrates international momentum while domestic markets remain stagnant.
Earnings per share reached $5.01, compared to Wall Street’s consensus forecast of approximately $4.76–$4.79. This represents a beat of about 5.25%. However, the figure trails last year’s comparable quarter result of $6.14 per share, indicating a year-over-year decline despite beating current expectations.
Lululemon Athletica Inc., LULU
Quarterly revenue for the period ending January 2026 totaled $3.64 billion. This figure exceeded the Zacks consensus projection by 1.65% and slightly outpaced the prior-year amount of $3.61 billion. While growth remains measured, the company continues expanding.
This represents the fourth straight quarter where Lululemon has surpassed EPS projections. The athleisure retailer has also beaten revenue estimates in three of the past four reporting periods.
Gross profit stood at $2.0 billion for the quarter, accounting for 54.9% of total net revenue. Operating income totaled $812 million, representing 22.3% of net revenue.
A significant headwind emerged in gross margin, which contracted by 550 basis points. Management attributed this decline to tariff-related challenges and elevated cost pressures.
Chinese Market Drives International Expansion
The standout performer in the quarterly results was China Mainland, which posted 28% revenue growth. This robust expansion compensated for lackluster results in North America, Lululemon’s primary and most mature market.
Online sales channels demonstrated resilience as well, climbing 9% year-over-year to reach $1.9 billion during the quarter. This represents a critical distribution channel for a brand increasingly focused on its direct-to-consumer strategy.
Shares increased 1.29% during after-hours trading following the earnings announcement, settling at $161.98. Despite this uptick, the stock trades near its 52-week low of $156.64 and substantially below its 52-week peak of $348.50. The stock has plummeted roughly 51% over the past year and declined approximately 23% since the beginning of 2026 — significantly underperforming the S&P 500’s roughly 2.1% decline during the same timeframe.
The company’s market capitalization stands at $18.68 billion, with a price-to-earnings ratio of 11.15.
Fiscal 2026 Outlook and Expansion Strategy
Looking ahead to fiscal 2026, Lululemon anticipates sustained expansion in China alongside product innovation initiatives. The athletic apparel company intends to launch 40–45 new retail locations worldwide throughout the year.
Analyst consensus estimates for the upcoming quarter project $2.29 in EPS on $2.49 billion in revenue. For the complete fiscal year, expectations call for $12.73 in earnings per share on $11.57 billion in total revenue.
Zacks presently assigns LULU a #3 (Hold) rating, indicating the stock is anticipated to track broader market performance in the immediate term.
The company’s sector classification — Zacks Textile-Apparel — currently ranks within the top 30% of all Zacks-rated industries.
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