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lululemon athletica inc. Announces First Quarter Fiscal 2025 Results

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Revenue increased 7% to $2.4 billion, or increased 8% on a constant dollar basis

Comparable sales increased 1%

Diluted EPSrticles/eps-explained-simple-example" title="Read: EPS Explained with a Simple Example: The Most Important Stock Metric" class="article-link" rel="noopener">Diluted EPS of $2.60

VANCOUVER, British Columbia--(BUSINESS WIRE)-- lululemon athletica inc. (NASDAQ:LULU) today announced financial results for the first quarter of fiscal 2025, which ended on May 4, 2025.

Calvin McDonald, Chief Executive Officer, stated: "In the first quarter, we achieved growth across channels, categories, and markets, including the U.S., reflecting the continued strength and agility of our business model. Additionally, guests responded well to the product innovations, newness, and brand activations we delivered around the world. As we navigate the dynamic macroenvironment, we intend to leverage our strong financial position and competitive advantages to play offense, while we continue to invest in the growth opportunities in front of us."

For the first quarter of 2025, compared to the first quarter of 2024:

  • Net revenue increased 7% to $2.4 billion, or increased 8% on a constant dollar basis.
    • Americas net revenue increased 3%, or 4% on a constant dollar basis.
    • International net revenue increased 19%, or 20% on a constant dollar basis.
  • Comparable sales increased 1%.
    • Americas comparable sales decreased 2%, or 1% on a constant dollar basis.
    • International comparable sales increased 6%, or 7% on a constant dollar basis.
  • Gross profit increased 8% to $1.4 billion and gross margin increased 60 basis points to 58.3%.
  • Income from operations increased 1% to $438.6 million and operating margin decreased 110 basis points to 18.5%.
  • The effective income tax rate for the first quarter of 2025 was 30.2% compared to 29.5% for the first quarter of 2024.
  • Diluted earnings per share were $2.60 compared to $2.54 in the first quarter of 2024.
  • The Company repurchased 1.4 million of its shares for a cost of $430.4 million.
  • The Company added three net new company-operated stores during the first quarter, ending with 770 stores.

Meghan Frank, Chief Financial Officer, stated: "We delivered first quarter revenue growth at the high end of our guidance and are pleased with the start to our second quarter. Looking ahead, we remain focused on our strategy and continue to operate with discipline as we drive the business forward. We are grateful to our teams around the world who are enabling us to deliver these consistent results."

Balance Sheet Highlights

The Company ended the first quarter of 2025 with $1.3 billion in cash and cash equivalents and the capacity under its committed revolving credit facility was $393.4 million.

Inventories at the end of the first quarter of 2025 increased 23% to $1.7 billion compared to $1.3 billion at the end of the first quarter of 2024. On a unit basis, inventories increased 16%.

2025 Outlook

For the second quarter of 2025, the Company expects net revenue to be in the range of $2.535 billion to $2.560 billion, representing growth of 7% to 8%. Diluted earnings per share are expected to be in the range of $2.85 to $2.90 for the quarter. This assumes a tax rate of approximately 30%.

For 2025, the Company continues to expect net revenue to be in the range of $11.150 billion to $11.300 billion, representing growth of 5% to 7%, or 7% to 8% excluding the 53rd week of 2024. Diluted earnings per share are now expected to be in the range of $14.58 to $14.78 for the year. This assumes a tax rate of approximately 30%.

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.

Conference Call Information

A conference call to discuss first quarter results is scheduled for today, June 5, 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: . A replay will be made available online approximately two hours following the live call for a period of 30 days.

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 .

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 May 4, 2025 is compared to the 13 weeks ended May 5, 2024 rather than April 28, 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 increase excluding the 53rd week excludes the net revenue for the 53rd week of 2024. This enables an evaluation of the expected year-over-year increase 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, or with greater prominence than, 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 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; its ability to attract, manage, and retain highly qualified individuals; 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; 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; an economic recession, depression, or downturn or economic uncertainty in its key markets; global economic and political conditions; its ability to source and sell its merchandise profitably or at all if new trade restrictions are imposed or existing trade restrictions become more burdensome; 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; 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 , 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.

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lululemon athletica inc.

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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".

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Condensed Consolidated Statements of Operations

Unaudited; Expressed in thousands, except per share amounts

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Ìý

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First Quarter

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Ìý

Ìý

2025

Ìý

Ìý

Ìý

2024

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Net revenue

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$

2,370,660

Ìý

Ìý

$

2,208,891

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Costs of goods sold

Ìý

Ìý

987,534

Ìý

Ìý

Ìý

933,823

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Gross profit

Ìý

Ìý

1,383,126

Ìý

Ìý

Ìý

1,275,068

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As a percentage of net revenue

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Ìý

58.3

%

Ìý

Ìý

57.7

%

Selling, general and administrative expenses

Ìý

Ìý

942,871

Ìý

Ìý

Ìý

842,426

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As a percentage of net revenue

Ìý

Ìý

39.8

%

Ìý

Ìý

38.1

%

Amortization of intangible assets

Ìý

Ìý

1,630

Ìý

Ìý

Ìý

�

Ìý

Income from operations

Ìý

Ìý

438,625

Ìý

Ìý

Ìý

432,642

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As a percentage of net revenue

Ìý

Ìý

18.5

%

Ìý

Ìý

19.6

%

Other income (expense), net

Ìý

Ìý

11,786

Ìý

Ìý

Ìý

23,283

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Income before income tax expense

Ìý

Ìý

450,411

Ìý

Ìý

Ìý

455,925

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Income tax expense

Ìý

Ìý

135,839

Ìý

Ìý

Ìý

134,504

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Net income

Ìý

$

314,572

Ìý

Ìý

$

321,421

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Basic earnings per share

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$

2.61

Ìý

Ìý

$

2.55

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Diluted earnings per share

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$

2.60

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Ìý

$

2.54

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Basic weighted-average shares outstanding

Ìý

Ìý

120,632

Ìý

Ìý

Ìý

125,989

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Diluted weighted-average shares outstanding

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Ìý

120,843

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Ìý

Ìý

126,336

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lululemon athletica inc.

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Condensed Consolidated Balance Sheets
Unaudited; Expressed in thousands

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Ìý

Ìý

May 4,
2025

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February 2,
2025

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April 28,
2024

ASSETS

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Current assets

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Cash and cash equivalents

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$

1,325,272

Ìý

$

1,984,336

Ìý

$

1,900,672

Inventories

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Ìý

1,652,091

Ìý

Ìý

1,442,081

Ìý

Ìý

1,345,267

Prepaid and receivable income taxes

Ìý

Ìý

230,280

Ìý

Ìý

182,253

Ìý

Ìý

192,955

Other current assets

Ìý

Ìý

374,874

Ìý

Ìý

371,632

Ìý

Ìý

329,193

Total current assets

Ìý

Ìý

3,582,517

Ìý

Ìý

3,980,302

Ìý

Ìý

3,768,087

Property and equipment, net

Ìý

Ìý

1,846,609

Ìý

Ìý

1,780,617

Ìý

Ìý

1,561,185

Right-of-use lease assets

Ìý

Ìý

1,549,401

Ìý

Ìý

1,416,256

Ìý

Ìý

1,263,749

Goodwill and intangible assets, net

Ìý

Ìý

178,001

Ìý

Ìý

171,191

Ìý

Ìý

23,992

Deferred income taxes and other non-current assets

Ìý

Ìý

274,015

Ìý

Ìý

254,926

Ìý

Ìý

211,482

Total assets

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$

7,430,543

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$

7,603,292

Ìý

$

6,828,495

LIABILITIES AND STOCKHOLDERS' EQUITY

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Ìý

Ìý

Ìý

Ìý

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Current liabilities

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Ìý

Ìý

Ìý

Ìý

Ìý

Accounts payable

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$

303,975

Ìý

$

271,406

Ìý

$

261,605

Accrued liabilities and other

Ìý

Ìý

506,996

Ìý

Ìý

559,463

Ìý

Ìý

374,446

Accrued compensation and related expenses

Ìý

Ìý

144,222

Ìý

Ìý

204,543

Ìý

Ìý

132,911

Current lease liabilities

Ìý

Ìý

281,837

Ìý

Ìý

275,154

Ìý

Ìý

254,443

Current income taxes payable

Ìý

Ìý

31,276

Ìý

Ìý

183,126

Ìý

Ìý

53,087

Unredeemed gift card liability

Ìý

Ìý

271,076

Ìý

Ìý

308,352

Ìý

Ìý

268,296

Other current liabilities

Ìý

Ìý

33,003

Ìý

Ìý

37,586

Ìý

Ìý

38,783

Total current liabilities

Ìý

Ìý

1,572,385

Ìý

Ìý

1,839,630

Ìý

Ìý

1,383,571

Non-current lease liabilities

Ìý

Ìý

1,424,945

Ìý

Ìý

1,300,637

Ìý

Ìý

1,147,631

Non-current income taxes payable

Ìý

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

15,864

Deferred income tax liability

Ìý

Ìý

98,189

Ìý

Ìý

98,188

Ìý

Ìý

29,150

Other non-current liabilities

Ìý

Ìý

45,454

Ìý

Ìý

40,790

Ìý

Ìý

32,471

Stockholders' equity

Ìý

Ìý

4,289,570

Ìý

Ìý

4,324,047

Ìý

Ìý

4,219,808

Total liabilities and stockholders' equity

Ìý

$

7,430,543

Ìý

$

7,603,292

Ìý

$

6,828,495

lululemon athletica inc.

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Condensed Consolidated Statements of Cash Flows

Unaudited; Expressed in thousands

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Ìý

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First Quarter

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Ìý

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2025

Ìý

Ìý

Ìý

2024

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Cash flows from operating activities

Ìý

Ìý

Ìý

Ìý

Net income

Ìý

$

314,572

Ìý

Ìý

$

321,421

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Adjustments to reconcile net income to net cash provided by operating activities

Ìý

Ìý

(433,526

)

Ìý

Ìý

(193,897

)

Net cash (used in) provided by operating activities

Ìý

Ìý

(118,954

)

Ìý

Ìý

127,524

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Net cash used in investing activities

Ìý

Ìý

(106,842

)

Ìý

Ìý

(131,537

)

Net cash used in financing activities

Ìý

Ìý

(467,974

)

Ìý

Ìý

(328,628

)

Effect of foreign currency exchange rate changes on cash and cash equivalents

Ìý

Ìý

34,706

Ìý

Ìý

Ìý

(10,658

)

Decrease in cash and cash equivalents

Ìý

Ìý

(659,064

)

Ìý

Ìý

(343,299

)

Cash and cash equivalents, beginning of period

Ìý

Ìý

1,984,336

Ìý

Ìý

Ìý

2,243,971

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Cash and cash equivalents, end of period

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$

1,325,272

Ìý

Ìý

$

1,900,672

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lululemon athletica inc.

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Reconciliation of Non-GAAP Financial Measures

Unaudited

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Constant dollar changes

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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 May 4, 2025 is compared to the 13 weeks ended May 5, 2024 rather than April 28, 2024.

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Ìý

Ìý

First Quarter 2025

Net Revenue

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Change

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Foreign exchange

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Change in constant dollars

United States

Ìý

2

%

Ìý

�

%

Ìý

2

%

Canada

Ìý

4

Ìý

Ìý

5

Ìý

Ìý

9

Ìý

Mexico(1)

Ìý

n/a

Ìý

Ìý

n/a

Ìý

Ìý

n/a

Ìý

Americas

Ìý

3

Ìý

Ìý

1

Ìý

Ìý

4

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

China Mainland

Ìý

21

Ìý

Ìý

1

Ìý

Ìý

22

Ìý

Rest of World

Ìý

16

Ìý

Ìý

1

Ìý

Ìý

17

Ìý

Total international

Ìý

19

Ìý

Ìý

1

Ìý

Ìý

20

Ìý

Ìý

Total

Ìý

7

%

Ìý

1

%

Ìý

8

%

Ìý

Ìý

First Quarter 2025

Comparable Sales (2)

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Change

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Foreign exchange

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Change in constant dollars

Americas

Ìý

(2

)%

Ìý

1

%

Ìý

(1

)%

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

China Mainland

Ìý

7

Ìý

Ìý

1

Ìý

Ìý

8

Ìý

Rest of World

Ìý

6

Ìý

Ìý

1

Ìý

Ìý

7

Ìý

Total international

Ìý

6

Ìý

Ìý

1

Ìý

Ìý

7

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Total

Ìý

1

%

Ìý

�

%

Ìý

1

%

___________________

(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 will be considered comparable beginning October 2025, after 12 full fiscal months of sales from the date of acquisition.

Expected net revenue increase excluding the 53rd week

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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.

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Ìý

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Fiscal 2025

Expected net revenue increase

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5% to 7%

Impact of 53rd week

Ìý

1% to 2%

Expected net revenue increase excluding the 53rd week (non-GAAP)

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7% to 8%

lululemon athletica inc.

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Company-operated Store Count and Square Footage(1)

Square footage expressed in thousands

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Ìý

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Number of Stores Open at the Beginning of the Quarter

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Number of Stores Opened During the Quarter

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Number of Stores Closed During the Quarter

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Number of Stores Open at the End of the Quarter

2nd Quarter 2024

Ìý

711

Ìý

11

Ìý

1

Ìý

721

3rd Quarter 2024

Ìý

721

Ìý

28

Ìý

�

Ìý

749

4th Quarter 2024

Ìý

749

Ìý

21

Ìý

3

Ìý

767

1st Quarter 2025

Ìý

767

Ìý

5

Ìý

2

Ìý

770

Ìý

Ìý

Total Gross Square Feet at the Beginning of the Quarter

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Gross Square Feet Added During the Quarter(2)

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Gross Square Feet Lost During the Quarter(2)

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Total Gross Square Feet at the End of the Quarter

2nd Quarter 2024

Ìý

2,988

Ìý

90

Ìý

3

Ìý

3,075

3rd Quarter 2024

Ìý

3,075

Ìý

156

Ìý

�

Ìý

3,231

4th Quarter 2024

Ìý

3,231

Ìý

153

Ìý

12

Ìý

3,372

1st Quarter 2025

Ìý

3,372

Ìý

50

Ìý

7

Ìý

3,415

___________________

(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.

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Investor Contacts:

lululemon athletica inc.

Howard Tubin

1-604-732-6124

or

ICR, Inc.

Joseph Teklits

1-203-682-8200



Media Contact:

lululemon athletica inc.

Madi Wallace

1-604-732-6124

Source: lululemon athletica inc.

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NASDAQ:LULU

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88.01%
4.99%
Apparel Retail
Apparel & Other Finishd Prods of Fabrics & Similar Matl
Canada
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