lululemon Reports Mixed Q1 2026 Results, Cuts Full-Year Outlook — lululemon athletica inc.

Event summary

Net revenue increased 4% to $2.5 billion, but decreased 3% in the Americas and increased 22% internationally.
Gross profit decreased 3% to $1.3 billion, with gross margin dropping 410 basis points to 54.2%.
Income from operations fell 37% to $276.9 million, with operating margin decreasing 730 basis points to 11.2%.
The company repurchased 2.2 million shares for $358.3 million and opened five net new stores.
Full-year revenue guidance revised down to a range of $11.000 billion to $11.150 billion, a decline of 1% to 0%.

The big picture

lululemon's Q1 2026 results highlight a stark contrast between its international expansion and challenges in its core North American market. The company's strategic focus on product innovation and operational efficiency will be critical as it navigates macroeconomic headwinds and competitive pressures in the retail apparel sector. With a revised full-year outlook, investors will be closely monitoring the effectiveness of its repositioning efforts.

What we're watching

Market Dynamics: Whether lululemon can sustain international growth while addressing declining performance in the Americas.
Profitability Strategy: How the company plans to reposition its product engine to offset margin compression.
Execution Risk: The pace at which lululemon can implement operational improvements to meet adjusted full-year guidance.