Lululemon Athletica has reiterated its guidance for fiscal 2025’s fourth quarter, projecting net revenue between $3.500 billion and $3.585 billion and diluted earnings per share between $4.66 and $4.76, driven by robust holiday‑season demand.
The guidance sits just below the $3.6 billion revenue and $6.14 EPS reported for Q4 2024, while the Q3 2025 results were $2.6 billion revenue and $2.59 EPS, indicating a slowdown in growth momentum but a return to near‑year‑end levels.
Segment analysis shows Americas net revenue fell 2% from the prior quarter, whereas international revenue surged 33%, reflecting stronger performance in overseas markets and a shift in product mix toward higher‑margin categories.
CFO Meghan Frank highlighted that holiday demand helped lift results and that the company remains focused on executing its action plan to improve the U.S. business, underscoring a strategic priority to regain market share in the domestic market.
Analysts have responded to the guidance update with mixed adjustments: Telsey Advisory Group raised its target to $215, Bank of America Securities increased its target by 14% to $480, Bernstein maintained an outperform rating with a target of $460, Jefferies kept an underperform rating with a target of $200, and TD Cowen lowered its target to $321.
The guidance signals confidence in holiday sales but also highlights ongoing headwinds, including competitive pressure from brands such as Alo and Vuori, tariff impacts that could cost $240 million in fiscal 2026, and internal governance challenges stemming from a proxy fight and activist investor involvement. These factors suggest that while the company is executing well in the short term, long‑term prospects will depend on its ability to navigate U.S. market challenges and maintain growth momentum in international markets.
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