Lululemon reported mixed results for Q4 FY2025, with modest revenue growth driven by its international segment, while the Americas region saw a decline. Profitability metrics, including gross and operating margins, experienced significant compression year-over-year, impacting diluted EPS.
Fourth quarter net revenue increased 1% to $3.6 billion, exceeding expectations.
positiveInternational net revenue increased 17% (14% on a constant dollar basis) in Q4 FY2025.
positiveFull year net revenue increased 5% to $11.1 billion.
positiveThe company repurchased shares for $269.1 million in Q4 and $1.2 billion for the full year.
neutralGross profit decreased 8% to $2.0 billion and gross margin decreased 550 basis points to 54.9% in Q4 FY2025.
negativeIncome from operations decreased 22% to $812.3 million and operating margin decreased 660 basis points to 22.3% in Q4 FY2025.
negativeAmericas net revenue decreased 4% (5% on a constant dollar basis) in Q4 FY2025.
negativeAmericas comparable sales decreased 1% (2% on a constant dollar basis) in Q4 FY2025.
negativeInventories at the end of 2025 increased by 18% to $1.7 billion, while on a unit basis, inventories increased 6%.
attentionFull year diluted EPS were $13.26 compared to $14.64 in the prior year.
negativeMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total | CC |
|---|---|---|---|---|---|
Americas | N/A | — | — | — | -5.0% |
International | N/A | — | — | — | +14.0% |
| Total Revenue | $0.00M | — | — | 100.0% | — |
Segment performance shows business unit health and growth drivers. Constant currency (CC) removes FX impact for like-for-like comparison.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
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.
Throughout 2025, we reported double-digit revenue growth in our international business and are taking action to incorporate learnings from across our regions to drive forward our strategies.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.