Lululemon beat Wall Street’s expectations in its Q4 fiscal year 2025 earnings report, released March 17. The results show a company growing internationally while its home market treads water.
$LULU Q4’25 EARNINGS HIGHLIGHTS
Revenue: $3.6B (Est. $3.58B)
; +1% YoY
Q1'26 Guide:
— Wall St Engine (@wallstengine) March 17, 2026
EPS came in at $5.01, against a consensus estimate of around $4.76–$4.79. That’s a beat of roughly 5.25%. A year ago, the company posted $6.14 per share for the same quarter, so earnings are down year-over-year even as they topped forecasts.
Lululemon Athletica Inc., LULU
Revenue for the quarter ended January 2026 reached $3.64 billion. That beat the Zacks consensus estimate by 1.65% and edged past the year-ago figure of $3.61 billion. Growth is modest, but it’s growth.
This marks the fourth consecutive quarter in which Lululemon has beaten EPS estimates. It’s also topped revenue forecasts three times in the last four quarters.
Gross profit for the quarter was $2.0 billion, representing 54.9% of net revenue. Operating income came in at $812 million, or 22.3% of net revenue.
One notable drag: gross margin dropped 550 basis points. The company cited tariff impacts and other cost pressures as the main reasons.
The clearest bright spot in the report was China Mainland, where revenue grew 28%. That expansion helped offset a flat performance in North America, Lululemon’s largest and most established market.
Digital sales also held up well, rising 9% year-over-year to $1.9 billion for the quarter. That’s a meaningful channel for a brand that has leaned into its direct-to-consumer model.
The stock rose 1.29% in aftermarket trading following the report, closing at $161.98. That said, the stock is trading just above its 52-week low of $156.64 and remains well below its 52-week high of $348.50. It has dropped roughly 51% over the past year and is down about 23% since the start of 2026 alone — compared to the S&P 500’s decline of about 2.1% over the same period.
Market cap sits at $18.68 billion, with a P/E ratio of 11.15.
For fiscal 2026, Lululemon is guiding toward continued growth in China and product innovation. The company plans to open 40–45 new stores globally during the year.
The current consensus EPS estimate for the next quarter is $2.29 on revenue of $2.49 billion. For the full fiscal year, the consensus is $12.73 EPS on $11.57 billion in revenue.
Zacks currently rates LULU a #3 (Hold), suggesting the stock is expected to perform in line with the market in the near term.
The company’s industry group — Zacks Textile-Apparel — currently sits in the top 30% of all Zacks-ranked industries.
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