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Aug 03, 2025
Lululemon Q2 2025 Earnings Report
Lululemon reported mixed results in Q2 2025, with strong international growth offset by underperformance in the U.S.
Key Takeaways
Lululemon delivered EPS above expectations but missed on revenue as weakness in the U.S. business weighed on overall performance. International sales remained a bright spot with strong double-digit growth.
EPS of $3.10 exceeded expectations
Revenue of $2.53B missed company guidance
International revenue grew 22%, while Americas saw only a 1% increase
Operating income and margins declined year-over-year
Revenue by Geographic Location
Forward Guidance
Lululemon lowered its full-year revenue and earnings guidance, citing continued U.S. weakness and headwinds from tariffs.
Positive Outlook
- Strong international growth momentum
- Brand strength and balance sheet remain solid
- Q2 EPS beat expectations
- Strategic investments underway to optimize product mix
- Continued store expansion with 15 new openings in Q2
Challenges Ahead
- Revenue missed Q2 guidance
- Full-year revenue guidance lowered to $10.85B–$11.0B
- Expected $240M gross profit reduction due to tariffs
- Operating margin declined YoY
- U.S. comparable sales decreased 4%
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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