Lululemon Posts 7% Rise In Q2 Revenue; Cuts Revenue Forecast
Lululemon Athletica Inc reported a 7% rise in revenue to US$ 2.5 billion for the second quarter ended August 3, 2025, but lowered its full-year outlook as sluggish US sales and higher tariffs weighed on performance.
Comparable sales rose 1%, with a 4% drop in the Americas offset by a strong 15% gain internationally. Net income fell slightly as operating margin contracted by 210 basis points to 20.7%. Diluted EPS came in at US$ 3.10, compared with US$ 3.15 a year earlier, ahead of analyst estimates.
CEO Calvin McDonald admitted the US business underperformed, citing gaps in product execution. “We are taking necessary actions to strengthen our merchandise mix and accelerate the business,” he said. CFO Meghan Frank added that while EPS topped guidance, revenue missed expectations largely due to the US market and industry-wide tariff pressures.
The athleisure giant now expects FY25 revenue of US$ 10.85–11.0 billion (2–4% growth), down from earlier forecasts, with EPS projected at US$ 12.77–12.97. For Q3, the company guided revenue of US$ 2.47–2.5 billion and EPS of US$ 2.18–2.23.
Lululemon ended the quarter with US$ 1.2 billion in cash, 784 stores globally, and inventories up 21% year-on-year to US$ 1.7 billion. The company repurchased 1.1 million shares worth US$ 278.5 million during the quarter.
