The company expects the net revenue to be in the range of USD 11.350 to USD 11.500 billion in 2026
Lululemon’s net revenue increased 5 per cent year-on-year to USD 11.1 billion in 2025. While Americas net revenue decreased 1 per cent, the company’s International business surged 22 per cent. It now expects the net revenue to be in the range of USD 11.350 to USD 11.500 billion in 2026, representing growth of 2 to 4 per cent.
For the first quarter of 2026, the company expects net revenue to be in the range of USD 2.400 to USD 2.430 billion, representing growth of 1 to 3 per cent. Diluted earnings per share are expected to be in the range of USD 1.63 to USD 1.68 for the quarter. This assumes a tax rate of approximately 31.5 per cent.
“As we begin our new fiscal year, we are focused on executing on our action plan, offering new and differentiated products to our guests, and elevating their experiences with lululemon. Driving improvement in our full-price sales over the course of 2026 is also a key priority, particularly in North America, and will enable us to enhance our brand health and deliver long-term growth and value creation for shareholders,” stated Meghan Frank, Interim Co-chief Executive Officer and Chief Financial Officer, Lululemon.
The company’s gross profit decreased 8 per cent to USD 2 billion and gross margin decreased 550 basis points to 54.9 per cent. Income from operations decreased 22 per cent to USD 812.3 million and operating margin decreased 660 basis points to 22.3 per cent during the quarter. For the full year 2025, income from operations decreased 12 per cent to USD 2.2 billion and operating margin decreased 380 basis points to 19.9 per cent.
The company ended 2025 with USD 1.8 billion in cash and cash equivalents and it had USD 593.6 million of available capacity under its committed revolving credit facility. Inventories at the end of 2025 increased by 18 per cent to USD 1.7 billion. On a unit basis, inventories increased 6 per cent. The official statement clarified that the guidance does not reflect potential future repurchases of the company’s shares.
