Lululemon Athletica, Inc.’s second-quarter earnings exceeded guidance, but revenue fell short of the plan, and the retailer reduced its earnings and sales guidance for the year due to weakness in its U.S. operations.

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

  • Net revenue increased 7 percent to $2.5 billion, representing a 6 percent increase on a constant dollar basis.
    • Americas’ net revenue increased 1 percent.
    • International net revenue increased 22 percent, or 20 percent on a constant dollar basis.
  • Comparable sales increased 1 percent.
    • Americas comparable sales decreased 4 percent, or 3 percent on a constant dollar basis.
    • International comparable sales increased 15 percent, or 13 percent on a constant dollar basis.
  • Gross profit increased 5 percent to $1.5 billion and gross margin decreased 110 basis points to 58.5 percent of net sales.
  • Income from operations decreased 3 percent to $523.8 million and operating margin decreased 210 basis points to 20.7 percent.
  • The effective income tax rate for the second quarter of 2025 was 30.5 percent compared to 29.6 percent for the second quarter of 2024.
  • Diluted earnings per share were $3.10 compared to $3.15 in the second quarter of 2024.
  • The company repurchased 1.1 million of its shares for a cost of $278.5 million.
  • The company added 14 net new company-operated stores during the second quarter, bringing its total to 784 stores.

Guidance had called for net revenue to be in the range of $2.535 billion to $2.560 billion, representing a 7 percent to 8 percent growth. EPS was expected to be in the range of $2.85 to $2.90.

2025 Outlook
For the third quarter of 2025, the company expects net revenue to be in the range of $2.47 billion to $2.50 billion, representing a 3 percent to 4 percent growth. Diluted earnings per share are expected to be in the range of $2.18 to $2.23 for the quarter. This assumes a tax rate of approximately 30.5 percent.

For 2025, the company now expects net revenue to be in the range of $10.850 billion to $11.000 billion, representing growth of 2 percent to 4 percent, or 4 percent to 6 percent excluding the 53rd week of 2024. Diluted EPS is now expected to be in the range of $12.77 to $12.97 for the year. This assumes a tax rate of approximately 30 percent.

Under its previous guidance, sales for the year were expected to be in the range of $11.15 billion to $11.3 billion, representing growth of 5 percent to 7 percent, or a range of 7 percent to 8 percent excluding the 53rd week.

EPS was previously forecast in the range of $14.58 to $14.78 for the year.

Image courtesy Lululemon Athletica, Inc.

See below for more in-depth SGB Executive coverage of Lululemon’s Q2 results and 2025 look ahead: 

EXEC: Lululemon CEO Blames “Stale” Lifestyle Offerings for U.S. Weakness

EXEC: Analysts Appear Skeptical of a Near-Term Return to Americas Growth for Lululemon