Lululemon growth driven by international markets as Americas slow

Lululemon has reported a 5% increase in its full-year revenues for 2025 to $11.1 billion (£8.3 billion), driven by "strong" international demand even as momentum in the Americas has slowed.

The results were shared just minutes after the athleisurewear giant confirmed the appointment of Chip Bergh, former President and Chief Executive Officer of Levi Strauss & Co, to its Board of Directors.

For the fourth quarter of 2025, net revenue for Lululemon increased 1% to $3.6 billion (£2.7 billion), but on a constant dollar basis remained flat, showing the brand benefited from a favourable exchange-rate lift.

However, performance varied sharply by region. In the Americas, net revenue decreased 4% (or 5% on a constant dollar basis), while international net revenue increased by 17% (or 14% on a constant dollar basis).

For the full year, revenue increased 5% to $11.1 billion (£8.3 billion); however, gross profit was flat at $6.3 billion (£4.7 billion). A breakdown by geography again shows that demand was much stronger internationally, with revenues increasing 22%, compared to the Americas, where revenue decreased by 1%.

André Maestrini, Interim Co-CEO, President and Chief Commercial Officer, said the strong international performance in 2025 would prompt the company to apply insights from those markets to sharpen its global strategy.

For the first quarter of 2026, Lululemon expects net revenue to be in the range of $2.40-$2.43 billion (£1.8-£1.83 billion), representing growth of 1% to 3%. For the full year 2026, the company expects net revenue to be in the range of $11.35-$11.50 billion (£8.51-£8.63 billion), representing growth of 2% to 4%.

Meghan Frank, Interim Co-CEO and Chief Financial Officer, stated that improving full-price sales in 2026 is a “key priority”, particularly in North America, and is meant to enhance long-term growth and value creation for shareholders.

She added: "We are pleased to achieve fourth quarter revenue and EPS [earnings per share] results ahead of our expectations. As we begin our new fiscal year, we are focused on executing on our action plan, offering new and differentiated products to our guests, and elevating their experiences with Lululemon.

Lululemon has seen several leadership changes recently,with former CEO Calvin McDonald departing the brand earlier this year after seven years in the role.

While the board is searching for a replacement, Meghan Frank and André Maestrini have taken over as joint Co-CEOs. The brand has also announced the appointment of Chip Bergh, former President and Chief Executive Officer of Levi Strauss & Co, to its Board of Directors.

"Chip Bergh is an industry leader with a proven record of guiding successful transformations, overseeing the growth of some of the world's most iconic brands, and driving value creation at global, category-defining companies," said Marti Morfitt, Executive Chair of the Board.

"We are confident the Board will benefit from his extensive brand and retail expertise as we continue to build on Lululemon's strong foundation and deliver innovative products and experiences for guests."