Key Highlights

  • Q4 earnings per share reached $5.01, surpassing analyst consensus of $4.76–$4.79 by approximately 5%
  • Quarterly revenue totaled $3.64 billion, exceeding projections and rising from $3.61 billion in the prior year period
  • China Mainland market delivered 28% revenue growth, contrasting with stagnant North American performance
  • E-commerce channels generated $1.9 billion, marking a 9% year-over-year increase
  • Shares advanced 1.29% during aftermarket hours, though trading 51% below levels from twelve months earlier

The athletic apparel retailer delivered fourth-quarter fiscal 2025 results on March 17 that exceeded Wall Street projections, highlighting international expansion amid domestic market challenges.

Earnings per share reached $5.01, compared to analyst consensus ranging from $4.76 to $4.79. The result represents a beat of approximately 5.25%. The comparable quarter last year produced $6.14 per share, indicating a year-over-year decline despite surpassing current expectations.


LULU Stock Card
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 climbed slightly from the previous year’s $3.61 billion. The increase demonstrates continued forward momentum, albeit at a measured pace.

The athletic brand achieved its fourth straight quarter of earnings beats. Revenue forecasts have been surpassed in three of the past four reporting periods.

Gross profit totaled $2.0 billion, accounting for 54.9% of total net revenue. Operating income reached $812 million, representing 22.3% of net revenue.

Gross margin compression of 550 basis points represented a significant headwind. Management attributed this decline to tariff-related expenses and elevated cost pressures.

International Expansion Led by China Performance

China Mainland emerged as the standout performer, delivering 28% revenue growth. This strong international performance helped balance stagnant results in North America, Lululemon’s most mature and substantial geographic segment.

E-commerce channels demonstrated resilience, advancing 9% year-over-year to reach $1.9 billion for the quarter. This digital performance supports the company’s strategic emphasis on direct customer relationships.

Shares climbed 1.29% in post-earnings trading, settling at $161.98. The current price hovers near the 52-week low of $156.64 and trades significantly below the 52-week peak of $348.50. The stock has declined approximately 51% over the trailing twelve months and decreased roughly 23% year-to-date in 2026 — while the S&P 500 has fallen about 2.1% during the same timeframe.

The company maintains a market capitalization of $18.68 billion, with shares trading at a price-to-earnings ratio of 11.15.

Forward Outlook and Retail Expansion

Looking ahead to fiscal 2026, Lululemon anticipates ongoing expansion in Chinese markets alongside product development initiatives. Management plans to launch 40–45 new retail locations worldwide throughout the year.

Analyst consensus for the upcoming quarter projects EPS of $2.29 on revenue of $2.49 billion. Full fiscal year estimates call for earnings of $12.73 per share on revenue totaling $11.57 billion.

Zacks maintains a #3 (Hold) rating on LULU shares, indicating expectations for market-aligned performance in coming months.

The Zacks Textile-Apparel industry group, which includes the company, currently ranks within the top 30% of all Zacks-classified sectors.