Lululemon Athletica (LULU) Q3 2025 earnings summary

Executive summary

• Q3 revenue grew 9% year-over-year to $2.4 billion, driven by strong international and Canadian performance, while U.S. sales stabilized and met internal forecasts.

• Diluted EPS rose 13% to $2.87, with net income up 41% to $351.9 million, reflecting robust profitability.

• International revenue surged 33% year-over-year, with China Mainland up 39% and Rest of World up 27%.

• Board authorized a $1 billion increase in share repurchase, with $1.8 billion now available.

• Ended Q3 with 749 company-operated stores globally, including 14 from the Mexico acquisition.

Financial highlights

• Q3 net revenue rose 9% to $2.4 billion; comparable sales up 3%; gross profit was $1.4 billion (58.5% of revenue).

• Adjusted operating margin increased 70 bps to 20.5%; operating margin up 520 bps year-over-year.

• Net income was $351.9 million, up 41% year-over-year.

• SG&A was $910 million (38% of revenue), slightly above guidance due to FX impact.

• Inventory increased 8% year-over-year to $1.8 billion.

Outlook and guidance

• FY24 revenue expected at $10.452–$10.487 billion, up 9% year-over-year; 7% growth excluding 53rd week.

• FY24 diluted EPS expected at $14.08–$14.16, up from $12.77 in 2023.

• Q4 revenue guidance: $3.475–$3.51 billion (8–10% growth); EPS $5.56–$5.64.

• Expecting 40 net new stores in 2024 (excluding Mexico), with most new openings in international markets.

• Guidance assumes a tax rate of ~30% and excludes future share repurchases.