lululemon athletica inc. Earnings Call Transcripts
Fiscal Year 2026
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Q4 revenue grew 1% to $3.6B, with strong gains in China but flat North America. Gross margin declined due to tariffs and markdowns, while new product launches and guest activations are driving early positive trends. FY2026 guidance calls for 2–4% revenue growth and continued investment in innovation and store expansion.
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Q3 revenue grew 7% to $2.6B, with strong international gains offsetting U.S. softness. FY2025 guidance was raised, but margins face pressure from tariffs and higher markdowns. CEO transition and a robust innovation pipeline position the company for long-term growth.
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Q2 EPS beat expectations, but revenue missed, prompting a reduced full-year outlook. U.S. sales lagged due to product fatigue in core casual categories and macro headwinds, while international growth, especially in China, remained strong. Tariffs and de minimis removal are pressuring margins and guidance.
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Q1 revenue grew 7% with strong international performance, especially in China, and gross margin expanded to 58.3%. Full-year guidance is maintained, but margins are expected to decline due to tariffs and higher markdowns, with mitigation efforts planned for the second half.
Fiscal Year 2025
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Q4 and full-year results exceeded guidance, with strong international growth and robust product innovation offsetting modest U.S. gains amid a cautious consumer environment. 2025 guidance anticipates continued revenue and EPS growth, but with margin pressure from FX and tariffs.
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Q3 revenue rose 9% to $2.4B, led by strong international and Canadian growth, while U.S. sales stabilized. FY24 guidance was raised, with EPS expected at $14.08–$14.16 and continued investment in product newness and global expansion.
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Q2 revenue grew 7% to $2.4B, led by international and men's categories, while U.S. women's sales lagged due to less product newness. EPS rose 18% on margin gains. FY24 guidance projects 8–9% revenue growth, with continued investment in innovation and international expansion.
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Q1 revenue grew 10% to $2.2B, led by strong international gains, especially in China, while U.S. growth was modest due to missed assortment opportunities. FY24 guidance is maintained for revenue and raised for EPS, with robust innovation and expansion plans ahead.
Fiscal Year 2024
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International growth is outpacing North America, driven by China and a focus on localization, community, and omni-channel strategies. Product innovation, premium positioning, and a decentralized model support strong margins and continued expansion, with significant runway remaining.