
• Reported GAAP EPS of $5.01 down -18.54% YoY • Reported revenue of $3.64B up 0.81% YoY • Lululemon Athletica Inc. expects continued decline in gross margin and operating margin in 2026, as tariffs and de minimis changes are anticipated to adversely affect product costs, gross profit, and income from operations.
Bullish
Lululemon Athletica Inc. achieved robust international revenue and comparable sales growth, driven by strategic product innovation and continued expansion of its omni-channel retail footprint and store network.
Bearish
Lululemon Athletica Inc. faces declining Americas revenue and comparable sales, alongside significant gross profit reduction from tariffs and de minimis exemption removal, with supply chain concentration posing geopolitical risks.