Lululemon's Stock Drops 10% Following Weak Fiscal 2025 Guidance

Despite exceeding Q4 2024 earnings expectations, the athleisure giant's cautious outlook for the coming year sparked investor concerns.

Lululemon reported Q4 2024 revenue of $3.61 billion and earnings per share of $6.14, surpassing Wall Street estimates.
The company achieved over $10 billion in annual revenue for the first time, with fiscal 2024 revenue reaching $10.59 billion.
Fiscal 2025 guidance fell short of analyst expectations, projecting revenue between $11.15 billion and $11.30 billion and earnings per share of $14.95 to $15.15.
International sales surged 38% year-over-year in Q4 2024, contrasting with flat comparable sales in the Americas.
Lululemon plans to expand its square footage by 10% in 2025 as part of its long-term strategy to double revenue by 2026.