After the market closed on December 11 EST, lululemon announced its financial results for the third quarter of fiscal year 2025 ended November 2, 2025.
Third Quarter of Fiscal Year 2025 Compared with Third Quarter of Fiscal Year 2024:
Revenue increased by 7% to USD 2.6 billion. Revenue in the Americas region declined by 2%. Revenue in international regions grew by 33%.
Comparable store sales increased by 1%, or 2% on a constant currency basis. Comparable store sales in the Americas region declined by 5%. Comparable store sales in international regions increased by 18%.Gross profit increased by 2% to USD 1.4 billion, while gross margin decreased by 290 basis points to 55.6%.
Operating profit decreased by 11% to USD 435.9 million, and operating margin fell by 350 basis points to 17.0%.
The effective income tax rate for the third quarter of fiscal year 2025 was 30.5%, compared with 30.2% for the third quarter of fiscal year 2024.
Diluted earnings per share were USD 2.59, compared with USD 2.87 for the third quarter of fiscal year 2024.
During this quarter, the company added a net total of 12 directly operated stores, bringing the total number of stores to 796 at the end of the quarter.
Chief Financial Officer Meghan Frank stated: 'Thanks to the company’s disciplined execution and continued strong performance of international operations, we achieved better-than-expected revenue and earnings per share in the third quarter. Looking ahead, the company will continue to leverage its robust financial position to invest in growth initiatives while maintaining operational discipline. Additionally, the company's board recently increased the stock repurchase authorization, reflecting shared confidence in the brand’s future opportunities, which is something we are pleased about.'
Stock Repurchase Program
In the third quarter of fiscal year 2025, the company repurchased 1 million shares of common stock at a cost of $189 million.
On December 3, 2025, the Board of Directors approved an increase of $1 billion in the company’s stock repurchase program. Including this increase, as of December 11, 2025, the remaining authorized amount under the company’s stock repurchase program was approximately $1.6 billion.
Highlights of the Balance Sheet
As of the end of the third quarter of fiscal year 2025, the company had $1 billion in cash and cash equivalents, with available capacity of $593 million under its committed revolving credit facility.
As of the end of the third quarter of fiscal year 2025, inventory increased to $2 billion, representing an 11% growth from $1.8 billion as of the end of the third quarter of fiscal year 2024; on a unit basis, inventory grew by 4%.
Outlook for Fiscal Year 2025
For the fourth quarter of fiscal year 2025, the company expects revenue to range between USD 3.50 billion and USD 3.585 billion, representing a year-over-year decline of 3% to 1%; excluding the impact of the 53rd week in fiscal year 2024, revenue is expected to grow by 2% to 4%. Diluted earnings per share for the quarter are projected to be between USD 4.66 and USD 4.76, assuming an income tax rate of approximately 30%.
For fiscal year 2025, the company forecasts revenue to range between USD 10.962 billion and USD 11.047 billion, reflecting year-over-year growth of 4%; excluding the impact of the 53rd week in fiscal year 2024, net income is expected to increase by 5% to 6%. Full-year diluted earnings per share are now anticipated to be between USD 12.92 and USD 13.02, assuming an income tax rate of approximately 30%.
The fiscal year 2025 guidance reflects an estimated reduction in operating profit of approximately $210 million after accounting for current mitigation measures, including supplier savings and pricing actions, based on the company’s current assumptions regarding increased U.S. import tariffs and the removal of tariff exemptions. Actual results may differ materially from these estimates if there are variations in tariff rates, procurement savings, consumer demand, or timing of regulatory changes compared to the company’s current assumptions, or if the effectiveness of mitigation measures falls short of current expectations. This guidance does not reflect potential future stock repurchases by the company.
Editor/Joryn