Lululemon Reports Solid Q4 Results but Issues Cautious Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 21 2026
0mins
Should l Buy LULU?
Source: NASDAQ.COM
- Revenue Growth: Lululemon's Q4 revenue increased by 1% year-over-year to $3.64 billion, surpassing the market expectation of $3.58 billion, indicating ongoing international expansion despite challenges in the North American market.
- International Performance: International revenue surged by 17%, with China revenue soaring by 28% and same-store sales climbing 26%, highlighting strong demand in global markets, particularly in China, which could drive future growth.
- Margin Pressure: Despite revenue growth, gross margins fell by 550 basis points to 54.9%, primarily due to tariffs and higher markdowns, with expectations of a further 120 basis point decline in the coming fiscal year, reflecting ongoing cost pressures.
- Future Outlook: Lululemon forecasts sales between $11.35 billion and $11.5 billion for FY2024, representing growth of 2% to 4%, with adjusted EPS expected between $12.10 and $12.30, indicating the company's efforts to maintain growth amid leadership uncertainties.
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Analyst Views on LULU
Wall Street analysts forecast LULU stock price to rise
22 Analyst Rating
1 Buy
21 Hold
0 Sell
Hold
Current: 145.850
Low
146.00
Averages
207.12
High
303.00
Current: 145.850
Low
146.00
Averages
207.12
High
303.00
About LULU
lululemon athletica inc. is a technical athletic apparel, footwear, and accessories company. The Company organizes its operations into four regional markets: the Americas, China Mainland, Asia Pacific (APAC), and Europe and the Middle East (EMEA). It conducts its business through a number of different channels in each market, including the Company-operated stores, e-commerce, temporary locations, wholesale, outlets, a re-commerce program, and license and supply arrangements. The Company offers a comprehensive line of technical athletic apparel, footwear, and accessories marketed under the lululemon brand. Its apparel assortment includes items such as shorts, tops, and jackets designed for a healthy lifestyle, including athletic activities such as yoga, running, training, and most other activities. It also offers apparel designed for being on the move and fitness-inspired accessories. It operates stores in the United States, Canada, China Mainland, Australia, South Korea and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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