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May 04, 2025
Lululemon Q1 2025 Earnings Report
Lululemon reported moderate growth in Q1 2025, with strength in international markets offsetting weaker performance in the Americas.
Key Takeaways
Lululemon posted a 7% revenue increase in Q1 2025 with net income of $314.6 million. EPS rose slightly to $2.60, driven by gross margin expansion and international growth. U.S. comparable sales declined, and operating margin compressed slightly.
Revenue rose 7% YoY to $2.37 billion, driven by 19% growth in international markets.
Diluted EPS was $2.60, up from $2.54 a year ago.
Gross margin expanded to 58.3%, increasing by 60 basis points YoY.
Americas comparable sales fell 2%, while international comps rose 6%.
Revenue by Geographic Location
Forward Guidance
For Q2 2025, Lululemon expects revenue between $2.535B and $2.560B and EPS of $2.85–$2.90. For the full year, it forecasts 5%–7% revenue growth, or 7%–8% excluding the 53rd week in FY24.
Positive Outlook
- Q2 revenue projected to grow 7–8%
- EPS guidance of $2.85–$2.90 for Q2 2025
- Full-year EPS expected in the range of $14.58–$14.78
- International growth momentum continues
- Strong financial position with $1.3B in cash
Challenges Ahead
- Operating margin declined YoY
- U.S. comparable sales declined 2%
- Inventory increased 23% YoY
- Cash from operations turned negative at -$118.95M
- Ongoing macroeconomic uncertainty cited
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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