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Lululemon Tops Q3 Estimates, Raises Guidance as CEO Sets 2026 Exit

After-hours gains followed strong overseas growth plus a $1 billion buyback expansion.

Overview

  • Lululemon reported EPS of $2.59 on revenue of $2.57 billion, beating consensus estimates on both profit and sales.
  • The company lifted its fiscal 2025 outlook to GAAP EPS of $12.92 to $13.02 and revenue of $10.96 billion to $11.05 billion.
  • CEO Calvin McDonald plans to step down effective Jan. 31, 2026, with CFO Meghan Frank and CCO AndrĂ© Maestrini to serve as interim co-CEOs during the search for a successor.
  • Regional trends diverged as Americas net revenue fell 2% with comparable sales down 5%, while international net revenue grew 33% with comps up 18%.
  • The board increased the share repurchase program by $1 billion, shares rose about 7% after hours, and analysts continued to cite tariff changes as a key margin headwind with more relief expected in 2026.