lululemon athletica (NASDAQ:LULU) Announces Earnings Results

lululemon athletica (NASDAQ:LULU) announced its quarterly earnings results on Thursday, December 11th. The apparel retailer reported $2.59 EPS for the quarter, beating analysts’ consensus estimates of $2.22 by $0.37, FiscalAI reports. lululemon athletica had a return on equity of 39.78% and a net margin of 15.72%.The company had revenue of $2.57 billion during the quarter, compared to analysts’ expectations of $2.48 billion. During the same period in the prior year, the company earned $2.53 EPS. lululemon athletica’s revenue was up 7.1% compared to the same quarter last year. lululemon athletica updated its FY 2025 guidance to 12.920-13.020 EPS and its Q4 2025 guidance to 4.660-4.760 EPS.

Here are the key takeaways from lululemon athletica’s conference call:

• Leadership transition announced — CEO Calvin McDonald will step down Jan 31 with Meghan Frank and André Maestrini named interim co-CEOs and Marty Morfitt as Executive Chair; McDonald will advise through March to support a planned handoff.
• International strength, led by China, drove growth — Q3 revenue rose 7% to $2.6B with China Mainland up ~46% and rest-of-world up high-teens, and management now expects China to be at or above the high end of its FY growth range.
• Clear action plan to revive U.S. performance — management outlined three pillars (product creation, activation, enterprise efficiency), plans to lift new-style penetration to 35% in spring 2026, and accelerate speed-to-market and chase capabilities to react to strong styles within weeks.
• Margin pressure from tariffs and markdowns — Q3 gross margin fell ~290 bps (tariffs and higher markdowns cited), full-year gross margin now expected to decline ~270 bps, and Q4 gross margin is guided to fall ~580 bps with ~410 bps attributed to tariffs/de minimis changes.
• Strong balance sheet and capital allocation flexibility — $1.0B in cash, no debt, inventory discipline (planning units below sales for 2026), and ~ $1.6B remaining share repurchase capacity after recent buys.

lululemon athletica Stock Up 0.0%

NASDAQ:LULU traded up $0.02 during midday trading on Tuesday, hitting $212.39. The company had a trading volume of 1,363,092 shares, compared to its average volume of 3,579,153. The company has a market capitalization of $24.92 billion, a PE ratio of 14.72, a P/E/G ratio of 12.93 and a beta of 1.01. The stock’s fifty day moving average price is $178.98 and its 200-day moving average price is $196.23. lululemon athletica has a 52-week low of $159.25 and a 52-week high of $423.32.

Insider Buying and Selling at lululemon athletica

In other news, insider Nicole Neuburger sold 615 shares of the company’s stock in a transaction dated Tuesday, September 30th. The shares were sold at an average price of $178.00, for a total transaction of $109,470.00. Following the completion of the transaction, the insider directly owned 8,993 shares of the company’s stock, valued at approximately $1,600,754. This represents a 6.40% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Celeste Burgoyne sold 13,511 shares of the business’s stock in a transaction dated Tuesday, December 16th. The shares were sold at an average price of $204.00, for a total value of $2,756,244.00. Following the transaction, the insider owned 5,318 shares in the company, valued at approximately $1,084,872. This represents a 71.76% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.54% of the company’s stock.

Institutional Investors Weigh In On lululemon athletica

Hedge funds have recently bought and sold shares of the business. MUFG Securities EMEA plc bought a new stake in lululemon athletica in the 2nd quarter worth about $78,000. Triumph Capital Management purchased a new stake in shares of lululemon athletica during the 3rd quarter valued at about $64,000. Voleon Capital Management LP bought a new stake in shares of lululemon athletica in the second quarter worth approximately $201,000. Rakuten Securities Inc. raised its holdings in shares of lululemon athletica by 60.4% during the second quarter. Rakuten Securities Inc. now owns 935 shares of the apparel retailer’s stock valued at $222,000 after purchasing an additional 352 shares during the last quarter. Finally, Glenview Trust co raised its holdings in shares of lululemon athletica by 39.9% during the second quarter. Glenview Trust co now owns 996 shares of the apparel retailer’s stock valued at $237,000 after purchasing an additional 284 shares during the last quarter. Institutional investors own 85.20% of the company’s stock.

Analyst Upgrades and Downgrades

Several analysts have recently commented on LULU shares. Bank of America upped their target price on shares of lululemon athletica from $185.00 to $220.00 and gave the stock a “neutral” rating in a research note on Friday, December 12th. Rothschild & Co Redburn reduced their target price on lululemon athletica from $230.00 to $160.00 and set a “sell” rating for the company in a report on Friday, September 12th. TD Securities dropped their price target on lululemon athletica from $298.00 to $220.00 and set a “buy” rating on the stock in a report on Friday, September 5th. Weiss Ratings restated a “sell (d+)” rating on shares of lululemon athletica in a research note on Wednesday, October 8th. Finally, Zacks Research upgraded lululemon athletica from a “strong sell” rating to a “hold” rating in a research note on Tuesday, November 4th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, thirty-two have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, lululemon athletica has a consensus rating of “Hold” and an average price target of $228.19.

About lululemon athletica

lululemon athletica inc. is a design-focused athletic apparel company known for performance-oriented apparel, footwear and accessories. The company’s product portfolio centers on technical apparel for yoga, running, training and everyday active lifestyle use and includes tops, bottoms, outerwear, underwear, bags and a growing footwear assortment. lululemon emphasizes fabric science and product innovation, marketing garments that blend performance features with lifestyle styling.

Products are developed in-house and produced through a network of third-party manufacturers.