lululemon's Q4 2025 Revenue Flat Amid International Growth, North America Decline
Event summary
- Q4 2025 revenue increased 1% to $3.6 billion, flat on a constant dollar basis.
- Americas net revenue decreased 4%, while international net revenue increased 17%.
- Gross profit decreased 8% to $2.0 billion, with gross margin dropping 550 basis points to 54.9%.
- Full-year 2025 revenue grew 5% to $11.1 billion, with international revenue up 22%.
- Company opened 15 net new stores in Q4, ending with 811 stores.
The big picture
lululemon's Q4 2025 results highlight a stark contrast between its international expansion and struggles in North America. The company's focus on differentiated products and elevating guest experiences comes amid broader retail challenges, including inflationary pressures and shifting consumer preferences. With a strategic emphasis on improving full-price sales, lululemon's ability to navigate these dynamics will be critical for long-term growth.
What we're watching
- Market Segmentation
- How lululemon will address the declining North American market while sustaining international growth.
- Profitability Pressures
- Whether the company can improve gross margins amid rising costs and competitive pressures.
- Product Innovation
- The pace at which new product launches will drive full-price sales and brand health.
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