Lululemon Athletica (NASDAQ: LULU) reported its fiscal fourth-quarter 2025 results after Tuesday’s close, beating Wall Street expectations on both revenue and earnings per share. However, a disappointing 2026 guidance is weighing on the stock in extended trading.
đ Q4 Fiscal 2025 Results
- Adjusted EPS: $5.01 â beats consensus of $4.76 (+5.2%)
- Revenue: $3.64 billion â beats estimate of $3.58 billion (+1.7%)
- Comparable sales: flat year-over-year
- Full year FY2025: Revenue of $11.1 billion; EPS of $13.26
â ī¸ What Is Concerning the Market
Despite the Q4 beat, fiscal 2026 projections triggered a negative reaction:
- Q1 2026 guidance: Revenue of $2.40â$2.43 billion (1â3% growth), 2.1% below analyst expectations
- Q1 2026 EPS guidance: $1.63â$1.68
- FY2026 guidance: Revenue $11.35â$11.50 billion (2â4% growth); EPS $12.10â$12.30 â below the $13.26 EPS delivered in FY2025
The outlook implies a year-over-year earnings contraction, which is weighing heavily on investor sentiment.
đ¤ Board of Directors Change
The company also announced the appointment of Chip Bergh, former CEO of Levi Strauss, to its Board of Directors, amid pressure from activist shareholders seeking a strategic shift at the company.
đ Stock Near 52-Week Lows
LULU closed today at $159.27, just above its 52-week low of $156.64, and far from its annual high of $348.50. The stock has lost more than 50% over the past year.
đĄ Context
Lululemon is navigating a challenging environment: a pressured U.S. consumer, increasing competition in the premium activewear segment, and compressed margins. While international growth remains a bright spot, the domestic market â its primary engine â is showing signs of deceleration.
Investors will be closely watching the earnings call for management’s tone on the macroeconomic outlook and margin recovery strategies.
