Athletic apparel retailer Lululemon (NASDAQ:LULU) reported Q4 CY2025 results exceeding the market’s revenue expectations , but sales were flat year on year at $3.64 billion. On the other hand, next quarter’s revenue guidance of $2.42 billion was less impressive, coming in 2.1% below analysts’ estimates. Its GAAP profit of $5.01 per share was 4.9% above analysts’ consensus estimates.
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Revenue: $3.64 billion vs analyst estimates of $3.57 billion (flat year on year, 1.8% beat)
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EPS (GAAP): $5.01 vs analyst estimates of $4.78 (4.9% beat)
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Revenue Guidance for Q1 CY2026 is $2.42 billion at the midpoint, below analyst estimates of $2.47 billion
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EPS (GAAP) guidance for the upcoming financial year 2026 is $12.20 at the midpoint, missing analyst estimates by 2.8%
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Operating Margin: 22.3%, down from 28.9% in the same quarter last year
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Locations: 811 at quarter end, up from 767 in the same quarter last year
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Same-Store Sales rose 3% year on year, in line with the same quarter last year
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Market Capitalization: $18.76 billion
Originally serving yogis and hockey players, Lululemon (NASDAQ:LULU) is a designer, distributor, and retailer of athletic apparel for men and women.
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul.
With $11.1 billion in revenue over the past 12 months, Lululemon is a mid-sized retailer, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale. On the bright side, it can still flex high growth rates because it’s working from a smaller revenue base.
As you can see below, Lululemon’s 11% annualized revenue growth over the last three years was decent as it opened new stores and increased sales at existing, established locations.
This quarter, Lululemon’s $3.64 billion of revenue was flat year on year but beat Wall Street’s estimates by 1.8%. Company management is currently guiding for a 1.9% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 3.3% over the next 12 months, a deceleration versus the last three years. We still think its growth trajectory is satisfactory given its scale and suggests the market is forecasting success for its products.
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