Overview
- Lululemon posted EPS of $2.59 on revenue of $2.57 billion, topping estimates of $2.27 and $2.48 billion, with net revenue up 7% year over year.
- International net revenue rose 33% with comparable sales up 18%, while the Americas fell 2% with comps down 5%, highlighting a sharp geographic split.
- The company raised full-year guidance to GAAP EPS of $12.92–$13.02 and revenue of $10.96–$11.05 billion, though fourth-quarter guidance trailed Wall Street expectations.
- Management now expects tariffs to reduce 2025 operating income by about $210 million, an improvement from a prior $240 million estimate after mitigation efforts.
- CEO Calvin McDonald will step down on Jan. 31, 2026, with CFO Meghan Frank and CCO André Maestrini set as interim co-CEOs, as the board boosts buybacks by $1 billion and the company reports Q3 repurchases of 1.0 million shares for $189 million; shares rose roughly 7%–10% and Bank of America lifted its price target to $220.