lululemon athletica inc. (NASDAQ:LULU) today announced financial results for the third quarter of fiscal 2025, which ended on November 2, 2025.

Calvin McDonald, Chief Executive Officer, stated: "In the third quarter, our teams remained focused on driving improvements within our U.S. business and maintaining momentum in our international regions. We are beginning to make progress against our action plan and continue to expect to see the impact of this work in 2026. 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:

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."

Stock Repurchase Program

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.

Balance Sheet Highlights

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%.

2025 Outlook

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.

Leadership Transition

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

Conference Call Information

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

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.

Shifted Calendar for Comparable Sales

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.

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 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.

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 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 atwww.sec.gov

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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 Operations Unaudited; Expressed in thousands, except per share amounts

	Third Quarter				First Three Quarters
	2025		2024		2025		2024
Net revenue	$	2,565,920	$	2,396,660	$	7,461,799	$	6,976,629
Costs of goods sold		1,140,004		995,054		3,175,555		2,887,770
Gross profit		1,425,916		1,401,606		4,286,244		4,088,859
As a percentage of net revenue		55.6 %		58.5 %		57.4 %		58.6 %
Selling, general and administrative expenses		988,254		909,827		2,882,783		2,624,212
As a percentage of net revenue		38.5 %		38.0 %		38.6 %		37.6 %
Amortization of intangible assets		1,776		1,118		5,136		1,118
Income from operations		435,886		490,661		1,398,325		1,463,529
As a percentage of net revenue		17.0 %		20.5 %		18.7 %		21.0 %
Other income (expense), net		5,854		13,743		27,377		55,020
Income before income tax expense		441,740		504,404		1,425,702		1,518,549
Income tax expense		134,905		152,534		433,390		452,336
Net income	$	306,835	$	351,870	$	992,312	$	1,066,213

Basic earnings per share	$	2.59	$	2.87	$	8.30	$	8.57
Diluted earnings per share	$	2.59	$	2.87	$	8.29	$	8.55
Basic weighted-average shares outstanding		118,535		122,697		119,589		124,471
Diluted weighted-average shares outstanding		118,552		122,803		119,692		124,668

lululemon athletica inc. Condensed Consolidated Balance Sheets Unaudited; Expressed in thousands

	November 2,2025		February 2,2025		October 27,2024
ASSETS
Current assets
Cash and cash equivalents	$	1,035,862	$	1,984,336	$	1,188,419
Inventories		1,997,844		1,442,081		1,800,893
Prepaid and receivable income taxes		430,303		182,253		257,388
Other current assets		459,652		371,632		358,589
Total current assets		3,923,661		3,980,302		3,605,289
Property and equipment, net		1,952,012		1,780,617		1,697,759
Right-of-use lease assets		1,600,385		1,416,256		1,360,589
Goodwill and intangible assets, net		182,990		171,191		178,185
Deferred income taxes and other non-current assets		296,144		254,926		241,847
Total assets	$	7,955,192	$	7,603,292	$	7,083,669
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	352,160	$	271,406	$	385,960
Accrued liabilities and other		621,155		559,463		561,615
Accrued compensation and related expenses		186,378		204,543		190,169
Current lease liabilities		317,482		275,154		290,368
Current income taxes payable		62,712		183,126		96,808
Unredeemed gift card liability		253,798		308,352		238,327
Other current liabilities		48,494		37,586		40,286
Total current liabilities		1,842,179		1,839,630		1,803,533
Non-current lease liabilities		1,445,312		1,300,637		1,223,733
Deferred income tax liability		111,590		98,188		33,231
Other non-current liabilities		54,088		40,790		37,440
Stockholders' equity		4,502,023		4,324,047		3,985,732
Total liabilities and stockholders' equity	$	7,955,192	$	7,603,292	$	7,083,669

lululemon athletica inc. Condensed Consolidated Statements of Cash Flows Unaudited; Expressed in thousands

	First Three Quarters
		2025			2024
Cash flows from operating activities
Net income	$	992,312		$	1,066,213
Adjustments to reconcile net income to net cash provided by operating activities		(532,706	)		(194,890	)
Net cash provided by operating activities		459,606			871,323
Net 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 equivalents		19,973			(23,151	)
Decrease in cash and cash equivalents		(948,474	)		(1,055,552	)
Cash and cash equivalents, beginning of period		1,984,336			2,243,971
Cash and cash equivalents, end of period	$	1,035,862		$	1,188,419

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. 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 2025
Net Revenue	Change		Foreign exchange		Change in constant dollars
United States	(3	)%	—	%	(3	)%
Canada	(1	)	1		—
Mexico⁽¹⁾	95		(9	)	86
Americas	(2	)	—		(2	)

China Mainland	46		1		47
Rest of World	19		—		19
Total international	33		—		33

Total	7	%	—	%	7	%

	Third Quarter 2025
Comparable Sales⁽²⁾	Change		Foreign exchange		Change in constant dollars
Americas	(5	)%	—	%	(5	)%

China Mainland	24		1		25
Rest of World	9		—		9
Total international	18		—		18

Total	1	%	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 week 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.

	Fourth Quarter 2025	Fiscal 2025
Expected net revenue change	(3)% to (1)%	4%
Impact of 53rd week	5%	1% to 2%
Expected net revenue change excluding the 53rd week (non-GAAP)	2% to 4%	5% to 6%

	Fiscal 2025
	Expected net revenue change	Impact of 53rd week	Foreign exchange	Expected 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 Mainland	20% to 23%	2 %	— %	22% to 25%
Rest of World	17% to 19%	2 %	(2) %	17% to 19%

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
Quarter 2024^th	749	21	3	767
Quarter 2025^st	767	5	2	770
Quarter 2025^nd	770	15	1	784
Quarter 2025^rd	784	14	2	796

	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
Quarter 2024^th	3,231	153	12	3,372
Quarter 2025^st	3,372	50	7	3,415
Quarter 2025^nd	3,415	99	3	3,511
Quarter 2025^rd	3,511	128	9	3,630

__________
⁽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.

Net revenue increased 7% to $2.6 billion.
- Americas net revenue decreased 2%.
- International net revenue increased 33%.
Comparable sales increased 1%, or 2% on a constant dollar basis.
- Americas comparable sales decreased 5%.
- International comparable sales increased 18%.
Gross profit increased 2% to $1.4 billion and gross margin decreased 290 basis points to 55.6%.
Income from operations decreased 11% to $435.9 million and operating margin decreased 350 basis points to 17.0%.
The effective income tax rate for the third quarter of 2025 was 30.5% compared to 30.2% for the third quarter of 2024.
Diluted earnings per share were $2.59 compared to $2.87 in the third quarter of 2024.
The Company opened 12 net new company-operated stores during the third quarter, ending with 796 stores.