| Imagery Source: Wikimedia Commons / Raysonho |
| Information Source: lululemon athletica inc |
|
Revenue increased 7% to $2.5 billion, or increased 6% on a constant dollar basis. Comparable sales increased 1% Diluted EPS of $3.10 |
| Lululemon Athletica Inc. (NASDAQ: LULU) today announced financial results for the second quarter of fiscal 2025, which ended on August 3, 2025. |
| Calvin McDonald, Chief Executive Officer, stated: "While we continued to see positive momentum overall in our international regions in the second quarter, we are disappointed with our U.S. 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 the plans we have in place to drive long-term growth." |
| For the second quarter of 2025, compared to the second quarter of 2024: |
|
|
|
|
|
|
|
|
|
|
|
|
| Meghan Frank, Chief Financial Officer, stated: "In the second quarter, we exceeded expectations on EPS, but revenue fell short of our guidance, driven predominantly by our U.S. 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." |
| Balance Sheet Highlights |
| The Company ended the second quarter of 2025 with $1.2 billion in cash and cash equivalents, and the capacity under its committed revolving credit facility was $393.2 million. |
| Inventories at the end of the second quarter of 2025 increased 21% to $1.7 billion compared to $1.4 billion at the end of the second quarter of 2024. On a unit basis, inventories increased 13%. |
| 2025 Outlook |
| For the third quarter of 2025, the Company expects net revenue to be in the range of $2.470 billion to $2.500 billion, representing growth of 3% to 4%. Diluted earnings per share are expected to be in the range of $2.18 to $2.23 for the quarter. This assumes a tax rate of approximately 30.5%. |
| For 2025, the Company now expects net revenue to be in the range of $10.850 billion to $11.000 billion, representing growth of 2% to 4%, or 4% to 6% excluding the 53rd week of 2024. Diluted earnings per share are now expected to be in the range of $12.77 to $12.97 for the year. This assumes a tax rate of approximately 30%. |
| The guidance for 2025 includes an estimated reduction in gross profit of approximately $240 million, net of currently anticipated mitigation efforts, including vendor savings and pricing actions, reflecting our current assumptions about higher levels of tariffs on imports into the United States and the removal of the de minimis exemption. Actual results could differ materially from these estimates if tariff rates, sourcing savings, consumer demand, or the timing of regulatory changes vary from our current assumptions, or if our mitigation initiatives are less effective than currently expected. |
| The guidance does not reflect potential future repurchases of the Company's shares. |
| The guidance and forward-looking statements made in this press release are based on management's expectations as of the date of this press release and do not incorporate future unknown impacts, including tariffs and macroeconomic trends. The Company undertakes no duty to update or to continue to provide information with respect to any forward-looking statements or risk factors, whether as a result of new information or future events or circumstances or otherwise. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of risks and uncertainties, including those stated below. |
| For the full document, click the link below |
| lululemon athletica inc |
| Stay ahead of the curve! Subscribe to InsidEntity for daily updates on all your favourite companies. |
Lululemon Athletica inc: Announces Second Quarter Fiscal 2025 Results
