Lululemon Athletica (LULU) Q4 2025 earnings summary

Executive summary

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

• Diluted EPS for Q4 was $6.14, up 16% year-over-year; full-year EPS was $14.64, up 15%.

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

• $1.6B in share repurchases completed in 2024, reflecting confidence in long-term growth.

• Continued strong product innovation and global expansion, with major brand activations and ambassador partnerships.

Financial highlights

• Q4 gross profit was $2.2B (60.4% of revenue), up 100 bps year-over-year; full-year gross profit up 12% to $6.3B.

• SG&A expenses were $1.1B (31.5% of revenue), slightly higher as a percent of sales due to strategic investments.

• Net income for Q4 was $748M; full-year net income $1.81B.

• Digital channel contributed 50% of Q4 revenue; store count reached 767 globally, with 56 net new stores added year-over-year.

• Comparable sales increased 4% year-over-year for both FY24 and Q4.

Outlook and guidance

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

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

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

• Operating margin to decline ~100 bps; FX a $0.30–$0.35 drag on EPS.

• Capex planned at $740M–$760M, focused on distribution, new stores, and technology.