Lululemon Q1 Revenue Rises 4% To US$ 2.5 Billion, Outlook Revised
Lululemon Athletica reported a 4% increase in first-quarter fiscal 2026 revenue to US$ 2.5 billion, driven by strong international growth despite continued weakness in the Americas.
For the quarter ended May 3, 2026, comparable sales rose 1%, while diluted earnings per share fell to US$ 1.69 from US$ 2.60 a year earlier. Gross profit declined 3% to US$ 1.3 billion, with gross margin contracting 410 basis points to 54.2%.
International revenue increased 22%, while revenue in the Americas declined 3%. Comparable sales grew 13% internationally but fell 5% in the Americas.
Operating income decreased 37% to US$ 276.9 million, resulting in an operating margin of 11.2%. The company ended the quarter with US$ 1.5 billion in cash and cash equivalents and opened five net new stores, bringing its global store count to 816.
“More recently, we have been navigating headwinds that have led us to adjust our outlook for the full year,” said Meghan Frank, interim Co-CEO and Chief Financial Officer.
Looking ahead, Lululemon expects second-quarter revenue of US$ 2.45 billion to US$ 2.48 billion. For fiscal 2026, the company now forecasts revenue between US$ 11.0 billion and US$ 11.15 billion, with diluted earnings per share expected in the range of US$ 10.95 to US$ 11.15.
