Lululemon (LULU) · Consumer Brands
Lululemon Q1 FY2026 earnings: summary, key numbers & outlook
Results filed 4 Jun 2026 · Quarter ended 3 May 2026
Press release ↗Investor relations ↗
Summaries and transcripts are machine-generated and can contain errors.
In brief
Lululemon's first-quarter fiscal 2026 revenue increased 4% to $2.5 billion and diluted EPS was $1.69, while income from operations decreased 37% to $276.9 million.
Lululemon grew revenue 4% to $2.5 billion in the first quarter, or 2% in constant dollars. International sales rose 22%, but Americas revenue fell 3%. Gross margin fell 410 basis points to 54.2%, and selling, general and administrative costs rose to 42.9% of revenue. Income from operations fell 37% to $276.9 million, and diluted EPS dropped to $1.69 from $2.60. Operating cash flow was $214,440 thousand, versus a $118,954 thousand outflow a year earlier.
Management lowered its full-year outlook, now expecting net revenue of $11.000 billion to $11.150 billion (down 1% to flat) and diluted EPS of $10.95 to $11.15. For the second quarter it expects revenue of $2.450 billion to $2.475 billion, a 3% to 2% decline, and EPS of $1.76 to $1.81. The main tension is a weak Americas business and shrinking margins against fast international growth. Guidance excludes any IEEPA tariff refunds and future share repurchases.
Key numbers
- Net revenue · GAAP
- $2.5 billion
- Net income · GAAP
- $195.0M
- Diluted EPS · GAAP
- $1.69
- Gross margin · GAAP
- 54.2%
- Income from operations · GAAP
- $276.9 million
- Operating margin · GAAP
- 11.2%
- Net cash provided by operating activities · GAAP
- $214.4M
up 4% from a year ago, or up 2% on a constant dollar basis
down from $314,572 a year ago
down from $2.60 in the first quarter of 2025
down 410 basis points
down 37% from a year ago
down 730 basis points
compared with net cash used of $118,954 a year ago
| Segment or metric | Value | Change |
|---|---|---|
| Americas net revenue | decreased 3% | decreased 4% on a constant dollar basis |
| International net revenue | increased 22% | increased 16% on a constant dollar basis |
| Comparable sales | increased 1% | decreased 2% on a constant dollar basis |
| Americas comparable sales | decreased 5% | decreased 6% on a constant dollar basis |
| International comparable sales | increased 13% | increased 8% on a constant dollar basis |
| Company-operated stores | 816 stores | five net new stores opened in the quarter |
Where each number comes from
- Net revenue: “Net revenue increased 4% to $2.5 billion, or increased 2% on a constant dollar basis.”
- Net income: “Income tax expense | 91,029 | 135,839 Net income | $195,048 | $314,572 Basic earnings per share | $1.69 | $2.61”
- Diluted EPS: “Diluted earnings per share were $1.69 compared to $2.60 in the first quarter of 2025.”
- Gross margin: “Gross profit decreased 3% to $1.3 billion and gross margin decreased 410 basis points to 54.2%.”
- Income from operations: “Income from operations decreased 37% to $276.9 million and operating margin decreased 730 basis points to 11.2%.”
- Operating margin: “Income from operations decreased 37% to $276.9 million and operating margin decreased 730 basis points to 11.2%.”
- Net cash provided by operating activities: “Net cash provided by (used in) operating activities | 214,440 | (118,954) Net cash used in investing activities | (138,850) | (106,842)”
- Americas net revenue: “Americas net revenue decreased 3%, or 4% on a constant dollar basis.”
- International net revenue: “International net revenue increased 22%, or 16% on a constant dollar basis.”
- Comparable sales: “Comparable sales increased 1%, or decreased 2% on a constant dollar basis.”
- Americas comparable sales: “Americas comparable sales decreased 5%, or 6% on a constant dollar basis.”
- International comparable sales: “International comparable sales increased 13%, or 8% on a constant dollar basis.”
- Company-operated stores: “The Company opened five net new company-operated stores during the first quarter, ending with 816 stores.”
Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.
| From the filing | Q1 FY2026 | vs year ago | vs last quarter |
|---|---|---|---|
| Revenue | $2.5B | +4.3% | −32.1% |
| Operating income | $276.9M | −36.9% | −65.9% |
| Net income | $195.0M | −38.0% | −66.8% |
| Diluted EPS | $1.69 | −35.0% | — |
| Free cash flow | $87.1M | — | −90.9% |
| Gross margin | 54.2% | −4.1 pts | −0.7 pts |
| Operating margin | 11.2% | −7.3 pts | −11.1 pts |
Calculated by code from XBRL, not by the model.
Outlook
| Metric | Period | Outlook |
|---|---|---|
| Net revenue | second quarter of 2026 | $2.450 billion to $2.475 billion |
| Diluted EPS | second quarter of 2026 | $1.76 to $1.81 |
| Tax rate | second quarter of 2026 | approximately 30% |
| Net revenue | 2026 | $11.000 billion to $11.150 billion |
| Diluted EPS | 2026 | $10.95 to $11.15 |
| Tax rate | 2026 | approximately 30% |
Key takeaways
Profit fell sharply despite higher revenue
Net revenue increased 4% to $2.5 billion, but income from operations decreased 37% to $276.9 million and diluted EPS fell to $1.69 from $2.60.
Gross margin fell 410 basis points
Gross margin was 54.2% versus 58.3% a year earlier, and SG&A rose to 42.9% of net revenue from 39.8%.
International growth offset Americas weakness
International net revenue increased 22% while Americas net revenue decreased 3% and Americas comparable sales decreased 5%.
Full-year outlook was lowered
Management now expects 2026 net revenue of $11.000 billion to $11.150 billion and diluted EPS of $10.95 to $11.15, citing headwinds navigated more recently.
Operating cash flow turned positive
Net cash provided by operating activities was $214,440 thousand versus $118,954 thousand used a year ago, and the company repurchased 2.2 million shares for $358.3 million.
Charts
Fourth quarter worked out from the annual figure.
Data
| Q3 FY24 | $2.4B |
| Q4 FY24 | $3.6B * |
| Q1 FY25 | $2.4B |
| Q2 FY25 | $2.5B |
| Q3 FY25 | $2.6B |
| Q4 FY25 | $3.6B * |
| Q1 FY26 | $2.5B |
| Q2 FY26 | $2.4B |
Data
| Q3 FY24 | $2.87 |
| Q1 FY25 | $2.60 |
| Q2 FY25 | $3.10 |
| Q3 FY25 | $2.59 |
| Q1 FY26 | $1.69 |
| Q2 FY26 | $2.92 |
Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.
Data
| Q3 FY24 | 20.5% |
| Q4 FY24 | 28.9% |
| Q1 FY25 | 18.5% |
| Q2 FY25 | 20.7% |
| Q3 FY25 | 17.0% |
| Q4 FY25 | 22.3% |
| Q1 FY26 | 11.2% |
| Q2 FY26 | 18.8% |
Data
| Q3 FY24 | $122.2M |
| Q4 FY24 | $1.2B |
| Q1 FY25 | -$271.2M |
| Q2 FY25 | $150.8M |
| Q3 FY25 | $82.4M |
| Q4 FY25 | $959.7M |
| Q1 FY26 | $87.1M |
| Q2 FY26 | $225.2M |
Operating cash flow minus capital expenditure, from cash flow statements.
Questions
What were Lululemon's first-quarter fiscal 2026 results?
Net revenue increased 4% to $2.5 billion, or 2% in constant dollars, and diluted EPS was $1.69 versus $2.60 a year earlier. Income from operations decreased 37% to $276.9 million.
What happened to Lululemon's margins?
Gross margin decreased 410 basis points to 54.2%, and operating margin decreased 730 basis points to 11.2%. SG&A rose to 42.9% of net revenue from 39.8%.
How did Lululemon's regions perform?
Americas net revenue decreased 3% and Americas comparable sales decreased 5%. International net revenue increased 22%, with China Mainland up 30% and comparable sales up 13% internationally.
What is Lululemon's guidance for the second quarter and full year?
For the second quarter it expects net revenue of $2.450 billion to $2.475 billion and diluted EPS of $1.76 to $1.81. For 2026 it now expects net revenue of $11.000 billion to $11.150 billion and diluted EPS of $10.95 to $11.15.
What does the guidance exclude?
The guidance does not reflect any potential IEEPA tariff refunds or future repurchases of the Company's shares. It also assumes a tax rate of approximately 30%.
Documents
SEC filing