TLDR
- Lululemon delivered Q4 earnings per share of $5.01, exceeding analyst consensus of $4.76–$4.79 by approximately 5%
- Quarterly revenue reached $3.64 billion, surpassing projections and showing a modest increase from $3.61 billion in the prior-year period
- Revenue from China Mainland surged 28%, compensating for stagnant North American sales
- Online sales increased 9% compared to the previous year, totaling $1.9 billion
- Shares advanced 1.29% during after-hours trading, though they remain approximately 51% lower than their level twelve months ago
Lululemon exceeded analyst projections with its fourth-quarter fiscal 2025 earnings announcement on March 17. The figures reveal an organization experiencing international momentum while its domestic operations remain stagnant.
Earnings per share registered at $5.01, compared to analyst expectations ranging from $4.76 to $4.79. This represents an upside surprise of approximately 5.25%. During the comparable quarter last year, the athletic apparel retailer reported $6.14 per share, indicating a year-over-year decline in profitability despite beating current forecasts.
Lululemon Athletica Inc., LULU
Quarterly revenue for the period ending January 2026 totaled $3.64 billion. This exceeded the Zacks consensus projection by 1.65% and narrowly surpassed the prior-year total of $3.61 billion. While expansion remains limited, positive momentum persists.
This represents the fourth straight quarter where Lululemon has surpassed earnings per share expectations. The company has also beaten revenue projections in three of the previous four reporting periods.
Gross profit reached $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.
One significant headwind: gross margin contracted by 550 basis points. Management attributed this compression primarily to tariff-related impacts and elevated cost pressures.
China Leads International Surge
The standout performer in the quarterly results was China Mainland, where revenue expanded 28%. This robust growth helped counterbalance stagnant results from North America, Lululemon’s most mature and significant geographic market.
Online sales also demonstrated resilience, climbing 9% year-over-year to reach $1.9 billion during the quarter. This channel represents a critical component for a retailer that has emphasized its direct-to-consumer strategy.
Shares increased 1.29% during after-hours trading following the earnings release, settling at $161.98. However, the stock price hovers near its 52-week low of $156.64 and trades substantially below its 52-week peak of $348.50. The stock has tumbled approximately 51% during the past year and declined roughly 23% since the beginning of 2026 — versus the S&P 500’s approximately 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.
Guidance and Store Plans for 2026
Looking ahead to fiscal 2026, Lululemon anticipates sustained expansion in China alongside product development initiatives. The retailer intends to launch 40–45 new locations worldwide throughout the year.
Analyst consensus for the upcoming quarter projects earnings per share of $2.29 on revenue of $2.49 billion. For the complete fiscal year, consensus estimates call for $12.73 in earnings per share on $11.57 billion in total revenue.
Zacks presently assigns LULU a #3 (Hold) rating, indicating expectations for performance consistent with broader market returns in the near term.
The company’s sector classification — Zacks Textile-Apparel — currently ranks within the top 30% of all Zacks-ranked industry groups.
