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Lululemon has announced it expects its 2026 revenues to increase between 2-4% to between $11.35bn (£9bn) and $11.5bn (£9.1bn), falling below predictions cast by market analysts.
In its full-year results for 2025, the athletic apparel retailer reported its total revenues hit $11.1bn (£8.3bn), up 5% year-on-year, with international net revenue jumping 22% on a constant dollar basis.
Meanwhile, net revenue in the Americas dipped by 1%.
Gross profit was flat at $6.3bn (£4.72bn), with gross margin falling 260 basis points to 56.6%.
Diluted EPS came in at $13.26 (£9.93).
The brand’s results were largely driven by international sales in the fourth quarter, which net soared by 17%, 14% on a constant dollar basis.
The company said its guidance for the year ahead could be impacted by a series of factors, such as expanding market competition, shifting consumer sentiment and US tariffs.
Meghan Frank, interim co-CEO and chief financial officer, said: “We are pleased to achieve fourth quarter revenue and EPS results ahead of our expectations. As we begin our new fiscal year, we are focused on executing on our action plan, offering new and differentiated products to our guests, and elevating their experiences with lululemon.
“Driving improvement in our full-price sales over the course of 2026 is also a key priority, particularly in North America, and will enable us to enhance our brand health and deliver long-term growth and value creation for shareholders.”
André Maestrini, interim co-CEO, president, and chief commercial officer, added: “Throughout 2025, we reported double-digit revenue growth in our international business and are taking action to incorporate learnings from across our regions to drive forward our strategies.
“Our teams are energized by the initial response to our recent product launches and continue to deliver successful guest activations globally. Looking ahead, we are encouraged by our opportunities in North America and around the world and are grateful to our teams for their commitment to delivering the products and experiences our guests love.”
