Lululemon delivers 'strong' international sales as US business ‘disappoints’

Canadian activewear brand Lululemon has reported mixed results for the second quarter of 2025, which ended on 3 August.

Net revenue increased by 7% to $2.5 billion (£1.3 billion) compared to Q2 FY24, with international net revenue rising by 22%, while the Americas saw a more modest increase of 1%.

Gross profit increased 5% to $1.5 billion (£807 million) and gross margin decreased 110 basis points to 58.5%.

Calvin McDonald, Chief Executive Officer of Lululemon Athletica, said: "While we continued to see positive momentum overall in our international regions in the second quarter, we are disappointed with our US business results and aspects of our product execution.

"We have closely assessed the drivers of our underperformance and are continuing to take the necessary actions to strengthen our merchandise mix and accelerate our business. We feel confident in the opportunity ahead and plans we have in place to drive long-term growth."

Meghan Frank, Chief Financial Officer of Lululemon Athletica, added: "In the second quarter, we exceeded expectations on EPS, but revenue fell short of our guidance driven predominantly by our US business.

"We are also navigating industry wide challenges, including higher tariff rates. In light of these dynamics, we are revising our full year outlook.

"As we begin the back half of the year, our brand and balance sheet remain strong, and we will continue to exercise financial discipline and strategically invest in our growth potential."

Lululemon opened 14 new stores during the second quarter, ending Q2 FY25 with 784 company operated stores globally.

Looking ahead for Q3, the brand expects net revenue to be in the range of $2.47-2.5 billion (£1.32-1.34 billion) , representing growth of 3% to 4%.

For FY25, Lululemon now expects net revenue to be in the range of $10.85-11 billion (£5.8-5.9 billion), representing growth of 4% to 6%.