Lululemon Reports $2.37 Billion Revenue in Q1 Fiscal 2025, Net Income Declines

Lululemon Athletica Inc. reported a net revenue of $2.37 billion for the first quarter of fiscal 2025, marking a 7% increase from $2.21 billion in the same period last year. The company's gross profit also rose to $1.38 billion, an 8% increase year-over-year, resulting in a gross margin of 58.3%, up from 57.7%. However, net income decreased slightly to $314.6 million, down from $321.4 million in the prior year, reflecting increased selling, general, and administrative expenses, which rose by 11.9% to $942.9 million. Diluted earnings per share improved to $2.60, compared to $2.54 in the first quarter of 2024.

The company experienced notable changes in its operational metrics. Comparable sales increased by 1%, with a 2% decline in the Americas, while the China Mainland saw a 7% increase. The Rest of World segment reported a 6% increase in comparable sales. Lululemon's inventory levels rose significantly, reaching $1.65 billion, a 23% increase from the previous year, attributed to strategic decisions to enhance product availability amid rising consumer demand.

Strategically, Lululemon completed the acquisition of its branded retail operations in Mexico on September 10, 2024, which has since been integrated into its financial results. The company operated 770 stores as of May 4, 2025, up from 767 in February 2025, reflecting its ongoing expansion efforts. The Americas segment generated the highest revenue at $1.67 billion, while the China Mainland and Rest of World segments contributed $368.1 million and $328.0 million, respectively.

The filing also highlighted challenges posed by macroeconomic conditions, including inflation and foreign currency fluctuations, which negatively impacted revenue growth by approximately $21.3 million. The company anticipates these factors will continue to influence its performance throughout 2025. Despite these challenges, Lululemon remains optimistic about its growth trajectory, focusing on expanding its product offerings and enhancing customer engagement through various channels, including e-commerce and physical stores. The company expects to leverage its strong cash position, with $1.33 billion in cash and cash equivalents, to support its strategic initiatives and maintain liquidity in the coming months.