lululemon athletica inc. Announces Third Quarter Fiscal 2025 Results; Board of Directors Authorizes $1.0 Billion Increase in Its Stock Repurchase Program

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As we enter the holiday season, we are encouraged by our early performance, and I would like to thank all our lululemon team members for their hard work and dedication to our guests and communities.”For the third quarter of 2025, compared to the third quarter of 2024:Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Meghan Frank, Chief Financial Officer, stated: “We delivered better-than-expected revenue and EPS in the third quarter as a result of our disciplined execution and ongoing strength internationally. Looking forward, we will continue to leverage our strong financial position to invest in our growth initiatives, while maintaining operational rigor. In addition, we are pleased our Board of Directors recently increased our share repurchase authorization, which demonstrates our collective confidence in the opportunities ahead for our brand.”During the third quarter of 2025, the Company repurchased 1.0 million shares of its common stock for a cost of $189.0 million.On December 3, 2025, the board of directors approved a $1.0 billion increase to the Company’s stock repurchase program. Including this increase, as of December 11, 2025, the Company had approximately $1.6 billion remaining authorized on its stock repurchase program.The Company ended the third quarter of 2025 with $1.0 billion in cash and cash equivalents and the capacity under its committed revolving credit facility was $593.0 million.Inventories at the end of the third quarter of 2025 increased 11% to $2.0 billion compared to $1.8 billion at the end of the third quarter of 2024. On a unit basis, inventories increased 4%.For the fourth quarter of 2025, the Company expects net revenue to be in the range of $3.500 billion to $3.585 billion, representing a decline of 3% to 1%, or growth of 2% to 4% excluding the 53rd week of 2024. Diluted earnings per share are expected to be in the range of $4.66 to $4.76 for the quarter. This assumes a tax rate of approximately 30%.For 2025, the Company now expects net revenue to be in the range of $10.962 billion to $11.047 billion, representing growth of 4%, or 5% to 6% excluding the 53rd week of 2024. Diluted earnings per share are now expected to be in the range of $12.92 to $13.02 for the year. This assumes a tax rate of approximately 30%.The guidance for 2025 includes an estimated reduction in income from operations of approximately $210 million, net of currently anticipated mitigation efforts, including vendor savings, and pricing actions, reflecting our current assumptions about higher levels of tariffs on imports into the United States and the removal of the de minimis exemption. Actual results could differ materially from these estimates if tariff rates, sourcing savings, consumer demand, or the timing of regulatory changes vary from our current assumptions, or if our mitigation initiatives are less effective than currently expected.The guidance does not reflect potential 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.In a separate press release today, lululemon also announced a CEO succession plan. For additional details, please visit: https://corporate.lululemon.com/media/press-releases.A conference call to discuss third quarter results is scheduled for today, December 11, 2025, 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.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.Due to the 53rd week in 2024, comparable sales are calculated on a one-week shifted basis such that the 13 weeks ended November 2, 2025 is compared to the 13 weeks ended November 3, 2024 rather than October 27, 2024.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 growth rate 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.The Company’s fiscal year ends on the Sunday closest to January 31st of the following year, typically resulting in a 52-week year, but occasionally giving rise to an additional week, resulting in a 53-week year. Fiscal 2024 was a 53-week year while 2025 will be a 52-week year. The expected net revenue change excluding the 53rd week excludes the net revenue for the 53rd week of 2024. This enables an evaluation of the expected year-over-year change in net revenue based on 52 weeks in each year.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 calculated differently from, and therefore may not be directly comparable to, similarly titled measures reported by other companies.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 the value and reputation of its brand; 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; 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 information systems; its ability to have technology-based systems function effectively and grow its e-commerce business globally; 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 and related trade actions; changes to tariffs, customs rules, and other trade restrictions; changes in tax laws or unanticipated tax liabilities; its ability to comply with trade and other regulations; fluctuations in foreign currency exchange rates; global or regional health events such as the COVID-19 pandemic and related government, private sector, and individual consumer responsive actions; 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; its ability to deliver its products to the market and to meet guest expectations if it has problems with its distribution system; increasing labor costs and other factors associated with the production of its products in South Asia and South East Asia; imitation by its competitors; its ability to protect its intellectual property rights; conflicting trademarks and patents and the prevention of sale of certain products; climate change and related pressures; heightened scrutiny and legal risks from competing pressures regarding ESG; its exposure to various types of litigation; 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.lululemon athletica inc.The fiscal year ending February 1, 2026 is referred to as “2025” and the fiscal year ended February 2, 2025 is referred to as “2024”.Condensed Consolidated Statements of OperationsUnaudited; Expressed in thousands, except per share amountsThird QuarterFirst Three Quarters2025202420252024Net revenue$2,565,920$2,396,660$7,461,799$6,976,629Costs of goods sold1,140,004995,0543,175,5552,887,770Gross profit1,425,9161,401,6064,286,2444,088,859As a percentage of net revenue55.6 %58.5 %57.4 %58.6 %Selling, general and administrative expenses988,254909,8272,882,7832,624,212As a percentage of net revenue38.5 %38.0 %38.6 %37.6 %Amortization of intangible assets1,7761,1185,1361,118Income from operations435,886490,6611,398,3251,463,529As a percentage of net revenue17.0 %20.5 %18.7 %21.0 %Other income (expense), net5,85413,74327,37755,020Income before income tax expense441,740504,4041,425,7021,518,549Income tax expense134,905152,534433,390452,336Net income$306,835$351,870$992,312$1,066,213Basic earnings per share$2.59$2.87$8.30$8.57Diluted earnings per share$2.59$2.87$8.29$8.55Basic weighted-average shares outstanding118,535122,697119,589124,471Diluted weighted-average shares outstanding118,552122,803119,692124,668lululemon athletica inc.Condensed Consolidated Balance SheetsUnaudited; Expressed in thousandsNovember 2, 2025February 2, 2025October 27, 2024ASSETSCurrent assetsCash and cash equivalents$1,035,862$1,984,336$1,188,419Inventories1,997,8441,442,0811,800,893Prepaid and receivable income taxes430,303182,253257,388Other current assets459,652371,632358,589Total current assets3,923,6613,980,3023,605,289Property and equipment, net1,952,0121,780,6171,697,759Right-of-use lease assets1,600,3851,416,2561,360,589Goodwill and intangible assets, net182,990171,191178,185Deferred income taxes and other non-current assets296,144254,926241,847Total assets$7,955,192$7,603,292$7,083,669LIABILITIES AND STOCKHOLDERS’ EQUITYCurrent liabilitiesAccounts payable$352,160$271,406$385,960Accrued liabilities and other621,155559,463561,615Accrued compensation and related expenses186,378204,543190,169Current lease liabilities317,482275,154290,368Current income taxes payable62,712183,12696,808Unredeemed gift card liability253,798308,352238,327Other current liabilities48,49437,58640,286Total current liabilities1,842,1791,839,6301,803,533Non-current lease liabilities1,445,3121,300,6371,223,733Deferred income tax liability111,59098,18833,231Other non-current liabilities54,08840,79037,440Stockholders’ equity4,502,0234,324,0473,985,732Total liabilities and stockholders’ equity$7,955,192$7,603,292$7,083,669lululemon athletica inc.Condensed Consolidated Statements of Cash FlowsUnaudited; Expressed in thousandsFirst Three Quarters20252024Cash flows from operating activitiesNet income$992,312$1,066,213Adjustments to reconcile net income to net cash provided by operating activities(532,706)(194,890)Net cash provided by operating activities459,606871,323Net cash used in investing activities(489,057)(575,214)Net cash used in financing activities(938,996)(1,328,510)Effect of foreign currency exchange rate changes on cash and cash equivalents19,973(23,151)Decrease in cash and cash equivalents(948,474)(1,055,552)Cash and cash equivalents, beginning of period1,984,3362,243,971Cash and cash equivalents, end of period$1,035,862$1,188,419lululemon athletica inc.Reconciliation of Non-GAAP Financial MeasuresUnauditedConstant dollar changesThe below changes show the change compared to the corresponding period in the prior year. Due to the 53rd week in 2024, the below changes in comparable sales are calculated on a one-week shifted basis such that the 13 weeks ended November 2, 2025 is compared to the 13 weeks ended November 3, 2024 rather than October 27, 2024.Third Quarter 2025Net RevenueChangeForeign exchangeChange in constant dollarsUnited States(3)%—%(3)%Canada(1)1—Mexico(1)95(9)86Americas(2)—(2)China Mainland46147Rest of World19—19Total international33—33Total7%—%7%Third Quarter 2025Comparable Sales(2)ChangeForeign exchangeChange in constant dollarsAmericas(5)%—%(5)%China Mainland24125Rest of World9—9Total international18—18Total1%1%2%__________(1)On September 10, 2024, the Company acquired the lululemon branded retail locations and operations run by a third party in Mexico. Wholesale sales to the third party by lululemon athletica canada inc. prior to the acquisition are disclosed as net revenue recognized within Canada.(2)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. Company-operated stores acquired as a result of the acquisition of the Mexico operations were considered comparable beginning October 2025, after 12 full fiscal months of sales from the date of acquisition.Expected net revenue change excluding the 53rd weekThe Company’s fiscal year ends on the Sunday closest to January 31st of the following year, typically resulting in a 52-week year, but occasionally giving rise to an additional week, resulting in a 53-week year. Fiscal 2024 was a 53-week year while 2025 will be a 52-week year.Fourth Quarter 2025Fiscal 2025Expected net revenue change(3)% to (1)%4%Impact of 53rd week5%1% to 2%Expected net revenue change excluding the 53rd week (non-GAAP)2% to 4%5% to 6%Fiscal 2025Expected net revenue changeImpact of 53rd weekForeign exchangeExpected net revenue change in constant dollars excluding the 53rd week (non-GAAP)United States(2)% to (3)%1 %— %(1%) to (2%)Canada(2) %2 %— %— %Americas(1)% to (2)%1 %— %0% to (1)%China Mainland20% to 23%2 %— %22% to 25%Rest of World17% to 19%2 %(2) %17% to 19%lululemon athletica inc. Company-operated Store Count and Square Footage(1)Square footage expressed in thousandsNumber of Stores Open at the Beginning of the QuarterNumber of Stores Opened During the QuarterNumber of Stores Closed During the QuarterNumber of Stores Open at the End of the Quarter4th Quarter 20247492137671st Quarter 2025767527702nd Quarter 20257701517843rd Quarter 2025784142796Total Gross Square Feet at the Beginning of the QuarterGross Square Feet Added During the Quarter(2)Gross Square Feet Lost During the Quarter(2)Total Gross Square Feet at the End of the Quarter4th Quarter 20243,231153123,3721st Quarter 20253,3725073,4152nd Quarter 20253,4159933,5113rd Quarter 20253,51112893,630__________(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. https://www.businesswire.com/news/home/20251211334123/en/Contactslululemon athletica inc.Howard Tubin1-604-732-6124orICR, Inc.Joseph Teklits1-203-682-8200Media Contact: lululemon athletica inc. 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