Lululemon Athletica (LULU) Q4 2025 earnings summary

Executive summary

• FY24 revenue reached $10.6B, up 10% year-over-year, surpassing $10B for the first time; Q4 revenue was $3.6B, up 13%.

• Diluted EPS for FY24 was $14.64, up 15%; Q4 diluted EPS was $6.14, up from $5.29 last year.

• Product innovation and new launches, such as Glow Up and Daydrift, drove guest engagement and are expected to fuel growth in 2025.

• Brand awareness remains a key opportunity, with activations and ambassador partnerships supporting global expansion.

• 56 net new stores opened in 2024, ending with 767 locations globally.

Financial highlights

• Q4 net revenue rose 13% (14% in constant currency) to $3.6B; comparable sales up 4%.

• Operating margin increased 40 bps to 28.9% in Q4; adjusted operating margin for the year up 50 bps to 23.7%.

• Q4 EPS was $6.14, up from $5.29 last year; full-year EPS reached $14.64.

• Gross margin in Q4 was 60.4%, up 100 bps, driven by lower product costs and markdowns.

• $1.6B returned to shareholders via share repurchases in 2024; $2.0B in cash at year-end.

Outlook and guidance

• FY2025 revenue expected at $11.15B–$11.3B, up 5–7% (7–8% excluding 53rd week); EPS guidance is $14.95–$15.15.

• Q1 2025 revenue guidance is $2.335B–$2.355B, up 6–7%; EPS $2.53–$2.58.

• Modest U.S. revenue growth anticipated; China expected to grow 25–30%, Rest of World ~20%.

• Gross margin for 2025 expected to decrease by 60 bps due to fixed cost deleverage, FX, and tariffs.

• Operating margin projected to decline by 100 bps; guidance assumes ~30% tax rate.