lululemon athletica inc. (NASDAQ: LULU) Q1 2025 Earnings Call | 6/5/2025

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lululemon athletica inc. (NASDAQ: LULU) reported Q1 2025 results on June 5, 2025, delivering adjusted earnings per share of $2.60—beating analyst expectations of $2.58—and net income of $314 million. Revenue rose 7% year-over-year to $2.4 billion, also topping consensus estimates, with international sales up 19% and U.S. revenue up 3%. Comparable sales increased 1%, driven by strong innovation and brand initiatives, though Americas comp sales declined 2% while international comps grew 6%. Gross profit climbed 8% to $1.4 billion, with gross margin expanding by 60 basis points to 58.3%. Operating income grew 1% to $438.6 million, but operating margin contracted by 110 basis points to 18.5% due to higher costs and promotional activity. The company repurchased 1.4 million shares for $430.4 million during the quarter and ended Q1 with 770 stores globally. Despite the solid quarter, lululemon cut its full-year earnings guidance, now projecting FY2025 EPS of $14.58–$14.78 (down from $14.95–$15.00 previously and below analyst consensus of $14.94), and maintained revenue guidance at $11.15–$11.30 billion. The company cited a "dynamic macroenvironment," ongoing tariff uncertainty, and a decelerating U.S. economy as key factors for the lowered outlook. For Q2 2025, lululemon expects revenue of $2.54–$2.56 billion and EPS of $2.85–$2.90, both below analyst estimates. Shares fell sharply—over 20% in after-hours trading—following the guidance cut, reflecting investor concern about the impact of tariffs and macroeconomic headwinds. CEO Calvin McDonald emphasized the company’s strong financial position and commitment to proactive growth investments, while highlighting resilience in international markets and ongoing product innovation. About Inside Ticker: For more expert analysis and real-time updates on lululemon athletica inc. (NASDAQ: LULU) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #Lululemon #LULU #EarningsCall #Q12025 #AthleticApparel #Tariffs #StockMarket #Investing #InsideTicker