lululemon Q4 revenue flat at $3.6 B, EPS down to $5.01; 2026 revenue guided to $11.35–11.50 B
lululemon posted Q4 net revenue of $3.6 billion (flat in constant dollars) with Americas down 4% and international up 17%, while diluted EPS declined to $5.01 as gross margin compressed by 550 basis points. Management set fiscal 2026 revenue guidance of $11.35 billion–$11.50 billion (+2%–4%) and EPS of $12.10–$12.30, citing tariff headwinds and a proxy battle.
1. Q4 Financial Performance
lululemon delivered fourth quarter net revenue of $3.6 billion, flat on a constant dollar basis, with Americas down 4% and international up 17%. Diluted EPS fell to $5.01 as gross margin compressed by 550 basis points to 54.9% and operating margin declined 660 basis points to 22.3%.
2. Annual Fiscal 2025 Results
For full fiscal year 2025, net revenue rose 5% to $11.1 billion, driven by a 22% increase internationally offsetting a 1% decline in the Americas. Gross profit remained at $6.3 billion, operating income declined 12% to $2.2 billion, and the company repurchased 5.0 million shares for $1.2 billion, ending with $1.8 billion in cash.
3. Fiscal 2026 Outlook
First quarter 2026 revenue is projected at $2.40 billion–$2.43 billion (+1%–3%) with EPS of $1.63–$1.68 assuming a 31.5% tax rate. Full-year 2026 guidance calls for $11.35 billion–$11.50 billion in revenue (+2%–4%) and EPS of $12.10–$12.30 assuming a 30% tax rate, excluding potential share repurchases.
4. Headwinds and Strategic Focus
Management highlighted tariff headwinds and an ongoing proxy battle as key challenges while prioritizing full-price sales improvement, new product launches and elevated guest experiences. Teams will leverage learnings from double-digit international growth to drive North America performance and long-term value creation.