lululemon athletica inc. (LULU) Earnings Call Transcripts

lululemon athletica inc.'s Latest Earnings Call - Q1 FY2027

In the first quarter of fiscal year 2026, lululemon athletica inc. (LULU) reported total net revenue of $2.5 billion, a 4% increase year-over-year, but fell short of expectations due to moderating sales trends and negative brand commentary. Earnings per share (EPS) were $1.69, significantly down from $2.60 in the prior year. Management has lowered guidance for Q2, projecting revenue between $2.45 billion and $2.475 billion, reflecting a decline of 2% to 3%, and full-year revenue expectations have been adjusted to a range of $11 billion to $11.15 billion, indicating flat to down 1% compared to 2025.

Reported metrics

Guidance from management

Management expects Q2 revenue in the range of $2.45 billion to $2.475 billion, reflecting a decline of 2% to 3%. Full-year revenue guidance has been lowered to $11 billion to $11.15 billion, indicating flat to down 1% compared to 2025.

What management said

Yes. Yes. As we set out this year, our aim was to increase our penetration of newness to -- from 23% last year to 35% over the course of this year. Right now, we sit at about 30%. It will fluctuate as we move throughout '26. I would say, I mentioned we've seen some of that newness perform to expectation and some be a little short. And I would say our recent performance is impacting all areas of our business from a pr...

Yes. Thank you, Rick, for the question. Andre here. We see that the portfolio that we have in international markets with more recent is more diversified in the composition of the sales. And yes, you're right, by bringing the core franchise to life with different colors, different iterations, is still a growth driver in international that plays stronger in those markets than our original North American market. So both...

What analysts pressed on

Analysts expressed concerns over the impact of negative brand commentary on traffic and sales, questioning the sustainability of recent product launches. There were also inquiries about the effectiveness of marketing strategies and the potential for further markdowns impacting margins.

Main topics on the call

• Revenue Performance — Total net revenue increased 4% year-over-year to $2.5 billion, but comparable sales decreased by 2%. Management noted, 'We faced a few headwinds and a moderating sales trend.'
• Product Launch Challenges — Management indicated that not all product launches met expectations, stating, 'Some of our product launches performed to expectations, we did see some recent product launches which performed under expectations.'
• Guidance Adjustments — For Q2, lululemon expects revenue to decline 2% to 3%, with full-year revenue guidance lowered to $11 billion to $11.15 billion. Management stated, 'We are not sitting still, and we are moving with urgency to make the ne...
• International Growth — China Mainland revenue grew 30% in Q1, with comparable sales up 13%. Management remains confident in the market, stating, 'We continue to expect approximately 20% growth for the year.'

Read the full lululemon athletica inc. transcript (Q1 FY2027) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 35 lululemon athletica inc. earnings call transcripts on record, spanning March 26, 2020 to June 4, 2026. Based on this history, lululemon athletica inc. reports quarterly. The most recent call on file is dated June 4, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

LULU

Exchange

NasdaqGS

Country

US

Sector

Consumer Discretionary

Industry

Textiles, Apparel and Luxury Goods

Calls on record

35

First call

March 26, 2020

Most recent

June 4, 2026

Reporting cadence

quarterly