Trending Now - Lululemon Reports Q4 Results Amid Weak Guidance and Challenges

WHO:

Lululemon athletica inc. (NASDAQ:LULU)

Meghan Frank, Interim Co-CEO and Chief Financial Officer

André Maestrini, Interim Co-CEO, President, and Chief Commercial Officer

Chip Wilson, Lululemon's largest independent shareholder

Chip Bergh, former CEO of Levi Strauss, added to Lululemon's board of directors

David Mussafer, board member and managing partner of Advent

WHAT:

Lululemon reported fourth quarter revenue of $3.6 billion, a 1% increase from the previous year.

Diluted earnings per share (EPS) for the fourth quarter were $5.01, down from $6.14 a year earlier.

Full year revenue for 2025 was $11.1 billion, a 5% increase from 2024.

The company expects first-quarter sales for 2026 to be between $2.40 billion and $2.43 billion.

Lululemon anticipates earnings per share for the first quarter to range between $1.63 and $1.68.

For the full year 2026, Lululemon expects sales between $11.35 billion and $11.50 billion.

The company expects tariffs to cost $380 million in 2026, up from $275 million in 2025.

Lululemon repurchased 1.4 million shares for $269.1 million in the fourth quarter of 2025.

The company opened 15 net new company-operated stores during the fourth quarter, ending with 811 stores.

WHERE:

Vancouver, British Columbia

Americas and international markets, including China

WHEN:

The fiscal year ended on February 1, 2026.

The fourth quarter of 2025 ended on February 1, 2026.

A conference call to discuss 2025 results was scheduled for March 17, 2026, at 4:30 p.m. Eastern time.

WHY:

Lululemon's guidance for 2026 was impacted by tariffs, higher expenses, and a proxy battle with its founder.

The company is focused on correcting its course on multiple fronts, including reducing reliance on discounts.

HOW:

Lululemon is negotiating with suppliers to reduce exposure to tariffs and is working to pull back on discount strategies to return to a full-price business model.

(UPDATED March 18, 2026 01:33 UTC)

Lululemon has reported fourth quarter revenue of $3.6 billion, marking a 1% increase from the previous year, although diluted earnings per share fell to $5.01 from $6.14 a year earlier. The company anticipates first-quarter sales for 2026 to be between $2.40 billion and $2.43 billion, while also expecting tariffs to cost $380 million this year, up from $275 million in 2025. In a strategic move, Lululemon has opened 15 new stores and repurchased 1.4 million shares for $269.1 million, as it works to reduce reliance on discounts and negotiate with suppliers to mitigate tariff impacts.