Profit drops as lululemon (NASDAQ: LULU) trims 2026 growth outlook
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
lululemon athletica inc. reported mixed first quarter 2026 results. Net revenue rose 4% to $2.5 billion, with strong international growth of 22% offsetting a 3% decline in the Americas. Comparable sales increased 1%, driven by a 13% gain internationally and a 5% decline in the Americas.
Profitability weakened meaningfully. Gross profit fell 3% to $1.3 billion, gross margin contracted 410 basis points to 54.2%, and income from operations dropped 37% to $276.9 million, reducing operating margin to 11.2%. Net income declined to $195.0 million and diluted EPS to $1.69, down from $2.60 a year earlier.
The company ended the quarter with $1.5 billion in cash and cash equivalents and inventories of $1.7 billion, up 2% in dollar terms but down 4% in units. It repurchased 2.2 million shares for $358.3 million and finished the period with 816 stores. For second quarter 2026, lululemon expects net revenue of $2.450–$2.475 billion, a 3%–2% decline, and diluted EPS of $1.76–$1.81. For full-year 2026, it now guides net revenue of $11.0–$11.15 billion, a 1%–0% decline, and diluted EPS of $10.95–$11.15, both lower than 2025.
Positive
- None.
Negative
- Operating performance weakened with gross margin falling 410 basis points to 54.2%, income from operations down 37% to $276.9 million, and diluted EPS decreasing from $2.60 to $1.69 year over year, while full-year 2026 guidance now calls for slight revenue and EPS declines versus 2025.
Insights
Revenue grew modestly but margins, EPS and 2026 outlook weakened.
lululemon delivered Q1 2026 net revenue of $2.47 billion, up 4%, with international net revenue up 22% and the Americas down 3%. This mix shows the brand still scaling abroad while facing pressure in its more mature North American market.
Profitability deteriorated sharply. Gross margin fell 410 basis points to 54.2%, and income from operations dropped 37% to $276.9 million, bringing operating margin down to 11.2%. Net income declined to $195.0 million and diluted EPS to $1.69 from $2.60, indicating higher costs and softer full-price sell-through.
The most consequential development is the reset outlook. Management now expects 2026 net revenue of $11.0–$11.15 billion, a 1%–0% decline, and diluted EPS of $10.95–$11.15, also down versus 2025. This shift from growth to slight contraction, alongside a Q2 revenue decline of 3%–2%, suggests a more challenging demand and margin backdrop even as the company continues buybacks and international expansion.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q1 2026 net revenue: $2,471,603,000
Q1 2026 gross margin: 54.2%
Q1 2026 income from operations: $276,946,000
+5 more
8 metrics
Q1 2026 net revenue
$2,471,603,000
First quarter 2026 net revenue, up 4% year over year
Q1 2026 gross margin
54.2%
First quarter 2026 gross margin, down from 58.3% in 2025
Q1 2026 income from operations
$276,946,000
First quarter 2026 operating income, 11.2% operating margin
Q1 2026 net income
$195,048,000
First quarter 2026 net income vs $314,572,000 in 2025
Q1 2026 diluted EPS
$1.69/share
First quarter 2026 diluted EPS vs $2.60 in 2025
Share repurchases
2.2 million shares, $358.3M
Shares repurchased during first quarter 2026
2026 revenue guidance
$11.0–$11.15B
Full-year 2026 net revenue outlook, down 1% to 0%
2026 EPS guidance
$10.95–$11.15
Full-year 2026 diluted EPS outlook, below 2025 level
Key Terms
comparable sales, constant dollar basis, operating margin, non-GAAP financial measures, +2 more
6 terms
comparable sales financial
"Comparable sales increased 1%, or decreased 2% on a constant dollar basis."
"Comparable sales" are the total sales from stores or products that have been open for a certain period, usually the same time last year or last quarter. They help show whether a business is growing by comparing similar locations or products over time, much like checking if your favorite store's sales are going up compared to previous years.
constant dollar basis financial
"Revenue increased 4% to $2.5 billion, or increased 2% on a constant dollar basis."
Constant dollar basis means showing financial figures after removing the effect of inflation so all amounts are expressed in the value of money from a single base year. It lets investors compare revenue, profit or costs over time using the same “yardstick,” so growth reflects real business performance rather than rising prices; this helps spot genuine trends and make more reliable investment decisions.
operating margin financial
"Income from operations decreased 37% to $276.9 million and operating margin decreased 730 basis points to 11.2%."
Operating margin shows how much profit a company makes from its core business activities after paying for costs like wages and materials. It’s useful because it tells you how efficiently a company is running—higher margins mean it keeps more money from each dollar of sales, which can indicate better management or stronger products.
non-GAAP financial measures financial
"We report certain financial metrics on a constant dollar basis, which is a non-GAAP financial measure."
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
forward-looking statements regulatory
"This press release includes estimates, projections, statements ... that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
committed revolving credit facility financial
"it had $593.6 million of available capacity under its committed revolving credit facility."
Earnings Snapshot
Revenue: $2,471,603,000 · Guidance included
Q1 2026
Revenue
$2,471,603,000
+4% vs Q1 2025
Net income
$195,048,000
vs $314,572,000 in Q1 2025
Diluted EPS
$1.69
vs $2.60 in Q1 2025
Gross margin
54.2%
down from 58.3% in Q1 2025
Guidance
For Q2 2026, net revenue $2.450–$2.475B and diluted EPS $1.76–$1.81; for full-year 2026, net revenue $11.0–$11.15B and diluted EPS $10.95–$11.15, both representing slight declines versus 2025.
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of principal executive offices, including Zip Code)
Registrant's telephone number, including area code: (604 ) 732-6124
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02. | Results of Operations and Financial Condition. | ||||
On June 4, 2026, lululemon athletica inc. (the "Company") issued a press release announcing its financial results for the first quarter ended May 3, 2026 and certain other information. A copy of the Company's press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. As previously announced, the Company has scheduled a conference call for 4:30 p.m. Eastern time on June 4, 2026 to discuss its financial results.
| Item 9.01. | Financial Statements and Exhibits. | ||||
(d) Exhibits.
| Exhibit No. | Description | |||||||
| 99.1 | Press release issued on June 4, 2026. | |||||||
| 104 | Cover Page Interactive Data File (formatted in iXBRL) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| lululemon athletica inc. | |||||
| Dated: June 4, 2026 | /s/ MEGHAN FRANK | ||||
| Meghan Frank | |||||
| Interim Co-Chief Executive Officer and Chief Financial Officer | |||||
Exhibit 99.1
LULULEMON ATHLETICA INC. ANNOUNCES FIRST QUARTER FISCAL 2026 RESULTS
Revenue increased 4% to $2.5 billion, or increased 2% on a constant dollar basis
Comparable sales increased 1%, or decreased 2% on a constant dollar basis
Diluted EPS of $1.69
Vancouver, British Columbia – June 4, 2026 – lululemon athletica inc. (NASDAQ:LULU) today announced financial results for the first quarter of fiscal 2026, which ended on May 3, 2026.
Meghan Frank, Interim Co-CEO and Chief Financial Officer, stated: "We experienced a solid start to 2026 as our teams executed with speed, agility, and discipline. Our work to drive improvements in North America resulted in some positive signals in the quarter, including a sequential improvement in full-price sales. More recently, we have been navigating headwinds that have led us to adjust our outlook for the full year. We have assessed the business and are taking additional actions to reposition where needed and further strengthen our product engine. We remain confident in our path forward."
André Maestrini, Interim Co-CEO, President, and Chief Commercial Officer, stated: "During the quarter, we continued to grow our lululemon community as we entered new markets and elevated our product, brand, and guest experiences around the world. This work included delivering successful product capsules and activations across train, tennis, and run, as well as implementing enhancements across our store fleet and digital channels that we will build upon in the months ahead. We recognize that we have more work to do, and our teams remain focused on our priorities as we continue our efforts to reignite growth and realize lululemon's full potential."
For the first quarter of 2026, compared to the first quarter of 2025:
•Net revenue increased 4% to $2.5 billion, or increased 2% on a constant dollar basis.
–Americas net revenue decreased 3%, or 4% on a constant dollar basis.
–International net revenue increased 22%, or 16% on a constant dollar basis.
•Comparable sales increased 1%, or decreased 2% on a constant dollar basis.
–Americas comparable sales decreased 5%, or 6% on a constant dollar basis.
–International comparable sales increased 13%, or 8% on a constant dollar basis.
•Gross profit decreased 3% to $1.3 billion and gross margin decreased 410 basis points to 54.2%.
•Income from operations decreased 37% to $276.9 million and operating margin decreased 730 basis points to 11.2%.
•The effective income tax rate for the first quarter of 2026 was 31.8% compared to 30.2% for the first quarter of 2025.
•Diluted earnings per share were $1.69 compared to $2.60 in the first quarter of 2025.
•The Company repurchased 2.2 million of its shares for a cost of $358.3 million.
•The Company opened five net new company-operated stores during the first quarter, ending with 816 stores.
Balance Sheet Highlights
The Company ended the first quarter of 2026 with $1.5 billion in cash and cash equivalents and it had $593.6 million of available capacity under its committed revolving credit facility.
Inventories at the end of the first quarter of 2026 increased by 2% to $1.7 billion compared to the end of the first quarter of 2025. On a unit basis, inventories decreased 4%.
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2026 Outlook
For the second quarter of 2026, the Company expects net revenue to be in the range of $2.450 billion to $2.475 billion, representing a decline of 3% to 2%. Diluted earnings per share are expected to be in the range of $1.76 to $1.81 for the quarter. This assumes a tax rate of approximately 30%.
For 2026, the Company now expects net revenue to be in the range of $11.000 billion to $11.150 billion, representing a decline of 1% to 0%. Diluted earnings per share are now expected to be in the range of $10.95 to $11.15 for the year. This assumes a tax rate of approximately 30%.
The guidance does not reflect any potential IEEPA tariff refunds or future repurchases of the Company's shares.
The guidance and outlook forward-looking statements made in this press release are based on management's expectations as of the date of this press release and do not incorporate future unknown impacts, including tariffs and macroeconomic trends. The Company undertakes no duty to update or to continue to provide information with respect to any forward-looking statements or risk factors, whether as a result of new information or future events or circumstances or otherwise. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of risks and uncertainties, including those stated below.
Conference Call Information
A conference call to discuss first quarter results is scheduled for today, June 4, 2026, at 4:30 p.m. Eastern time. Those interested in participating in the call are invited to dial 1-833-752-3550 or 1-647-846-8290, if calling internationally, approximately 10 minutes prior to the start of the call. A live webcast of the conference call will be available online at: https://corporate.lululemon.com/investors/news-and-events/events-and-presentations. A replay will be made available online approximately two hours following the live call for a period of 30 days.
About lululemon athletica inc.
lululemon athletica inc. (NASDAQ:LULU) is a technical athletic apparel, footwear, and accessories company for yoga, running, training, and most other activities, creating transformational products and experiences that build meaningful connections, unlocking greater possibility and wellbeing for all. Setting the bar in innovation of fabrics and functional designs, lululemon works with yogis and athletes in local communities around the world for continuous research and product feedback. For more information, visit lululemon.com.
Non-GAAP Financial Measures
We report certain financial metrics on a constant dollar basis, which is a non-GAAP financial measure.
A constant dollar basis assumes the average foreign currency exchange rates for the period remained constant with the average foreign currency exchange rates for the same period of the prior year. The Company provides constant dollar changes in its results to help investors understand the underlying performance of net revenue excluding the impact of changes in foreign currency exchange rates. Management uses constant currency metrics internally when reviewing and assessing financial performance.
These non-GAAP financial measures are provided in addition to, and not a substitute for, the corresponding financial measures calculated in accordance with GAAP. For more information on these non-GAAP financial measures, please see the section captioned "Reconciliation of Non-GAAP Financial Measures" included in the accompanying financial tables, which includes more detail on the GAAP financial measure that is most directly comparable to each non-GAAP financial measure, and the related reconciliations between these financial measures. The Company's non-GAAP financial measures may be
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calculated differently from, and therefore may not be directly comparable to, similarly titled measures reported by other companies.
Forward-Looking Statements:
This press release includes estimates, projections, statements relating to the Company's business plans, objectives, and expected operating results that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. In many cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "outlook," "believes," "intends," "estimates," "predicts," "potential" or the negative of these terms or other comparable terminology. These forward-looking statements also include the Company's guidance and outlook statements. These statements are based on management's current expectations but they involve a number of risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in the forward-looking statements as a result of risks and uncertainties, which include, without limitation: the Company's ability to maintain its brand value and reputation; its highly competitive market and increasing competition; its ability to anticipate consumer preferences and successfully develop and introduce new, innovative and differentiated products; the acceptability of its products to guests; increasing costs and decreasing selling prices; its ability to accurately forecast guest demand for its products; its ability to expand in light of its limited operating experience and limited brand recognition in new international markets and new product categories; its ability to attract, manage, and retain highly qualified individuals; its ability to manage its growth and the increased complexity of its business effectively; changes in consumer shopping preferences and shifts in distribution channels; its leasing of retail and distribution space; seasonality; changes to U.S. tariff and customs policy, including the elimination of the de minimis exemption; macroeconomic volatility, inflationary pressures, and shifts in consumer sentiment; global political and economic instability, including geopolitical conflicts and political polarization; trade restrictions, tariffs, and customs changes; its ability to comply with trade and other regulations; changes in tax laws, transfer pricing, or unanticipated tax liabilities; fluctuations in foreign currency exchange rates; global or regional public health crises; disruptions of its supply chain; its reliance on a relatively small number of vendors to supply and manufacture a significant portion of its products; suppliers or manufacturers not complying with its Vendor Code of Ethics or applicable laws; fluctuating costs of raw materials and the cost of producing its products; its ability to deliver its products to the market and to meet guest expectations if it has problems with its distribution system; its ability to safeguard against security breaches with respect to its technology systems; its compliance with privacy and data protection laws; any material disruption of its technology systems; its ability to have technology-based systems for its e-commerce business function effectively; imitation by its competitors; its ability to protect its intellectual property rights; conflicting trademarks and patents and the prevention of sale of certain products; actions by stockholders, activists, or consumers; its exposure to various types of litigation; climate change and related pressures; heightened scrutiny and legal risks from competing pressures regarding ESG; and other risks and uncertainties set out in filings made from time to time with the United States Securities and Exchange Commission and available at www.sec.gov, including, without limitation, its most recent reports on Form 10-K and Form 10-Q. You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements. The forward-looking statements made herein speak only as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances, except as may be required by law.
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Contacts:
Investor Contacts:
lululemon athletica inc.
Howard Tubin
1-604-732-6124
or
ICR, Inc.
Joseph Teklits
1-203-682-8200
Media Contact:
lululemon athletica inc.
Madi Wallace
1-604-732-6124
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lululemon athletica inc.
The fiscal year ending January 31, 2027 is referred to as "2026" and the fiscal year ended February 1, 2026 is referred to as "2025".
Condensed Consolidated Statements of Operations
Unaudited; Expressed in thousands, except per share amounts
First Quarter | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Net revenue | $ | 2,471,603 | $ | 2,370,660 | ||||||||||
| Costs of goods sold | 1,132,785 | 987,534 | ||||||||||||
| Gross profit | 1,338,818 | 1,383,126 | ||||||||||||
| As a percentage of net revenue | 54.2% | 58.3% | ||||||||||||
| Selling, general and administrative expenses | 1,059,988 | 942,871 | ||||||||||||
| As a percentage of net revenue | 42.9% | 39.8% | ||||||||||||
| Amortization of intangible assets | 1,884 | 1,630 | ||||||||||||
| Income from operations | 276,946 | 438,625 | ||||||||||||
| As a percentage of net revenue | 11.2% | 18.5% | ||||||||||||
| Other income (expense), net | 9,131 | 11,786 | ||||||||||||
| Income before income tax expense | 286,077 | 450,411 | ||||||||||||
| Income tax expense | 91,029 | 135,839 | ||||||||||||
| Net income | $ | 195,048 | $ | 314,572 | ||||||||||
| Basic earnings per share | $ | 1.69 | $ | 2.61 | ||||||||||
| Diluted earnings per share | $ | 1.69 | $ | 2.60 | ||||||||||
| Basic weighted-average shares outstanding | 115,414 | 120,632 | ||||||||||||
| Diluted weighted-average shares outstanding | 115,482 | 120,843 | ||||||||||||
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lululemon athletica inc.
Condensed Consolidated Balance Sheets
Unaudited; Expressed in thousands
| May 3, 2026 | February 1, 2026 | May 4, 2025 | ||||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Current assets | ||||||||||||||||||||
| Cash and cash equivalents | $ | 1,514,729 | $ | 1,807,202 | $ | 1,325,272 | ||||||||||||||
| Inventories | 1,687,088 | 1,700,753 | 1,652,091 | |||||||||||||||||
| Prepaid and receivable income taxes | 422,167 | 352,469 | 230,280 | |||||||||||||||||
| Other current assets | 370,591 | 402,277 | 374,874 | |||||||||||||||||
| Total current assets | 3,994,575 | 4,262,701 | 3,582,517 | |||||||||||||||||
| Property and equipment, net | 2,045,719 | 2,033,720 | 1,846,609 | |||||||||||||||||
| Right-of-use lease assets | 1,948,704 | 1,630,181 | 1,549,401 | |||||||||||||||||
| Goodwill and intangible assets, net | 189,357 | 191,194 | 178,001 | |||||||||||||||||
| Deferred income taxes and other non-current assets | 353,086 | 338,947 | 274,015 | |||||||||||||||||
| Total assets | $ | 8,531,441 | $ | 8,456,743 | $ | 7,430,543 | ||||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||
| Accounts payable | $ | 294,323 | $ | 331,421 | $ | 303,975 | ||||||||||||||
| Accrued liabilities and other | 586,317 | 662,982 | 506,996 | |||||||||||||||||
| Accrued compensation and related expenses | 172,395 | 187,887 | 144,222 | |||||||||||||||||
| Current lease liabilities | 357,204 | 298,724 | 281,837 | |||||||||||||||||
| Current income taxes payable | 50,130 | 43,948 | 31,276 | |||||||||||||||||
| Unredeemed gift card liability | 296,361 | 316,632 | 271,076 | |||||||||||||||||
| Other current liabilities | 37,586 | 45,954 | 33,003 | |||||||||||||||||
| Total current liabilities | 1,794,316 | 1,887,548 | 1,572,385 | |||||||||||||||||
| Non-current lease liabilities | 1,778,804 | 1,499,717 | 1,424,945 | |||||||||||||||||
| Deferred income tax liability | 75,251 | 52,278 | 98,189 | |||||||||||||||||
| Other non-current liabilities | 57,469 | 55,360 | 45,454 | |||||||||||||||||
| Stockholders' equity | 4,825,601 | 4,961,840 | 4,289,570 | |||||||||||||||||
| Total liabilities and stockholders' equity | $ | 8,531,441 | $ | 8,456,743 | $ | 7,430,543 | ||||||||||||||
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lululemon athletica inc.
Condensed Consolidated Statements of Cash Flows
Unaudited; Expressed in thousands
First Quarter | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Cash flows from operating activities | ||||||||||||||
| Net income | $ | 195,048 | $ | 314,572 | ||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities | 19,392 | (433,526) | ||||||||||||
| Net cash provided by (used in) operating activities | 214,440 | (118,954) | ||||||||||||
| Net cash used in investing activities | (138,850) | (106,842) | ||||||||||||
| Net cash used in financing activities | (378,525) | (467,974) | ||||||||||||
| Effect of foreign currency exchange rate changes on cash and cash equivalents | 10,462 | 34,706 | ||||||||||||
| Decrease in cash and cash equivalents | (292,473) | (659,064) | ||||||||||||
| Cash and cash equivalents, beginning of period | 1,807,202 | 1,984,336 | ||||||||||||
| Cash and cash equivalents, end of period | $ | 1,514,729 | $ | 1,325,272 | ||||||||||
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lululemon athletica inc.
Reconciliation of Non-GAAP Financial Measures
Unaudited
Constant dollar changes
The below changes show the change compared to the corresponding period in the prior year.
First Quarter 2026 | ||||||||||||||||||||
| Net Revenue | Change | Foreign exchange | Change in constant dollars | |||||||||||||||||
| United States | (4) | % | — | % | (4) | % | ||||||||||||||
| Canada | (3) | (3) | (6) | |||||||||||||||||
| Americas | (3) | (1) | (4) | |||||||||||||||||
| China Mainland | 30 | (7) | 23 | |||||||||||||||||
| Rest of World | 13 | (4) | 9 | |||||||||||||||||
| Total international | 22 | (6) | 16 | |||||||||||||||||
| Total | 4 | % | (2) | % | 2 | % | ||||||||||||||
First Quarter 2026 | ||||||||||||||||||||
Comparable Sales(1) | Change | Foreign exchange | Change in constant dollars | |||||||||||||||||
| Americas | (5) | % | (1) | % | (6) | % | ||||||||||||||
| China Mainland | 20 | (7) | 13 | |||||||||||||||||
| Rest of World | 5 | (4) | 1 | |||||||||||||||||
| Total international | 13 | (5) | 8 | |||||||||||||||||
| Total | 1 | % | (3) | % | (2) | % | ||||||||||||||
__________
(1)Comparable sales includes comparable company-operated store and e-commerce net revenue. Comparable company-operated stores have been open for at least 12 full fiscal months, or open for at least 12 full fiscal months after being significantly expanded. Comparable company-operated stores exclude stores which have been temporarily relocated for renovations or have been temporarily closed.
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lululemon athletica inc.
Company-operated Store Count and Square Footage(1)
Square footage expressed in thousands
| Number of Stores Open at the Beginning of the Quarter | Number of Stores Opened During the Quarter | Number of Stores Closed During the Quarter | Number of Stores Open at the End of the Quarter | |||||||||||||||||||||||
2nd Quarter 2025 | 770 | 15 | 1 | 784 | ||||||||||||||||||||||
3rd Quarter 2025 | 784 | 14 | 2 | 796 | ||||||||||||||||||||||
4th Quarter 2025 | 796 | 18 | 3 | 811 | ||||||||||||||||||||||
1st Quarter 2026 | 811 | 11 | 6 | 816 | ||||||||||||||||||||||
| Total Gross Square Feet at the Beginning of the Quarter | Gross Square Feet Added During the Quarter(2) | Gross Square Feet Lost During the Quarter(2) | Total Gross Square Feet at the End of the Quarter | |||||||||||||||||||||||
2nd Quarter 2025 | 3,415 | 99 | 3 | 3,511 | ||||||||||||||||||||||
3rd Quarter 2025 | 3,511 | 128 | 9 | 3,630 | ||||||||||||||||||||||
4th Quarter 2025 | 3,630 | 116 | 10 | 3,736 | ||||||||||||||||||||||
1st Quarter 2026 | 3,736 | 66 | 14 | 3,788 | ||||||||||||||||||||||
__________
(1)Company-operated store count and square footage summary excludes retail locations operated by third parties under license and supply arrangements.
(2)Gross square feet added/lost during the quarter includes net square foot additions for company-operated stores which have been renovated or relocated in the quarter.
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FAQ
How did lululemon (LULU) perform financially in Q1 2026?
lululemon grew net revenue 4% to $2.5 billion in Q1 2026, but profitability declined. Net income fell to $195.0 million and diluted EPS dropped to $1.69 from $2.60, reflecting lower margins and higher operating expenses.
What were lululemon (LULU) gross margin and operating margin in Q1 2026?
In Q1 2026, lululemon’s gross margin was 54.2%, down from 58.3%. Operating margin declined to 11.2% from 18.5% as operating income decreased 37% to $276.9 million, indicating increased cost pressure and lower profitability.
How did lululemon (LULU) perform by region in Q1 2026?
Americas net revenue for lululemon decreased 3% in Q1 2026, while international net revenue increased 22%. Comparable sales fell 5% in the Americas but rose 13% internationally, highlighting continued strength outside North America despite domestic softness.
What guidance did lululemon (LULU) give for Q2 2026?
For Q2 2026, lululemon expects net revenue of $2.450–$2.475 billion, representing a 3%–2% decline. Diluted EPS is projected between $1.76 and $1.81, assuming an income tax rate of approximately 30%, signaling near-term margin and demand pressure.
What is lululemon (LULU) full-year 2026 revenue and EPS outlook?
For 2026, lululemon now forecasts net revenue of $11.0–$11.15 billion, a 1%–0% decline versus 2025. It expects diluted EPS of $10.95–$11.15, also down year over year, reflecting a more cautious outlook amid macro and demand headwinds.
How much cash and inventory did lululemon (LULU) hold at the end of Q1 2026?
At Q1 2026 quarter-end, lululemon held $1.5 billion in cash and cash equivalents and $1.7 billion in inventories. Inventories increased 2% in dollars but declined 4% in units compared to Q1 2025, indicating more efficient unit levels.