International markets remained a key growth driver, with revenue rising 22 per cent, while the Americas saw a marginal 1 per cent decline. Comparable sales increased 2 per cent overall, with a 15 per cent rise internationally offset by a 3 per cent decline in the Americas.
Lululemon has reported revenue of $11.1 billion in FY25, up 5 per cent YoY, driven by 22 per cent international growth despite weak Americas sales.
Margins and profits declined, with EPS falling to $13.26.
The company expanded stores and repurchased shares.
Q4 showed modest growth but weaker profitability.
Lululemon expects FY26 revenue growth of 2-4 per cent amid ongoing macroeconomic challenges.
The gross profit remained flat at $6.3 billion, while gross margin contracted by 260 basis points to 56.6 per cent. Income from operations declined 12 per cent to $2.2 billion, with operating margin narrowing to 19.9 per cent. Diluted earnings per share (EPS) fell to $13.26 from $14.64 in FY24, Lululemon Athletica said in a press release.
The company continued to invest in expansion and shareholder returns, opening 44 net new stores to reach a total of 811 locations and repurchasing 5 million shares worth $1.2 billion. Lululemon ended the year with $1.8 billion in cash and cash equivalents, while inventories rose 18 per cent to $1.7 billion.
Andre Maestrini, interim co-CEO, president, and chief commercial officer at the company, stated, “Throughout 2025, we reported double-digit revenue growth in our international business and are taking action to incorporate learnings from across our regions to drive forward our strategies. Our teams are energised by the initial response to our recent product launches and continue to deliver successful guest activations globally. Looking ahead, we are encouraged by our opportunities in North America and around the world and are grateful to our teams for their commitment to delivering the products and experiences our guests love.”
In the fourth quarter (Q4) of FY25, revenue increased 1 per cent to $3.6 billion, with international growth of 17 per cent offsetting a 4 per cent decline in the Americas. However, profitability weakened, with operating income falling 22 per cent and gross margin declining by 550 basis points to 54.9 per cent. Quarterly diluted EPS dropped to $5.01 from $6.14.
Meghan Frank, interim co-CEO and chief financial officer at Lululemon, stated, “We are pleased to achieve fourth quarter revenue and EPS results ahead of our expectations. 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.”
Looking ahead, Lululemon expects first-quarter FY26 revenue between $2.4 billion and $2.43 billion, with full-year revenue projected at $11.35 billion to $11.5 billion, representing growth of 2 per cent to 4 per cent. Diluted EPS is forecast in the range of $12.1 to $12.3 for FY26, as the company navigates macroeconomic uncertainties and evolving market conditions.
Fibre2Fashion News Desk (SG)
