| Metric | Value ($ M) | Q1 FY26 |
|---|---|---|
| Revenue | 2.5K | 4.3% |
| Total Income | 2.5K | 4.3% |
| Expenditure | 2.2K | 13.6% |
| PBT | 286.08 | 36.5% |
| Net Profit | 195.05 | 38.0% |
| OPM | 11.21% | 7.30pp |
| NPM | 7.89% | 5.38pp |
| EPS | 1.69 | 35.3% |
lululemon athletica inc. Announces Q1 2026 Results
05 Jun 2026 · 5 Jun, 1:43 am
Summary
Lululemon athletica inc. reported a 4% increase in net revenue to $2.5 billion for the first quarter of fiscal 2026, driven by strong international growth, though Americas revenue saw a decline. Gross profit decreased by 3% to $1.3 billion, and gross margin contracted by 410 basis points to 54.2%. Diluted earnings per share fell to $1.69 from $2.60 year-over-year. Management noted a solid start to the year but adjusted the full-year outlook due to headwinds, while also implementing actions to strengthen the business and reignite growth.
Key Highlights
- 1
Net revenue increased 4% to $2.5 billion in the first quarter of fiscal 2026, or increased 2% on a constant dollar basis.
- 2
International net revenue increased 22%, or 16% on a constant dollar basis, while Americas net revenue decreased 3%.
- 3
Gross profit decreased 3% to $1.3 billion, and gross margin decreased 410 basis points to 54.2%.
- 4
Income from operations decreased 37% to $276.9 million, with operating margin decreasing 730 basis points to 11.2%.
- 5
Diluted earnings per share were $1.69 for the first quarter of 2026, down from $2.60 in the prior year.
- 6
The Company opened five net new company-operated stores during the first quarter, ending with 816 stores.
Management Comments
Meghan Frank
We experienced a solid start to 2026 as our teams executed with speed, agility, and discipline. Our work to drive improvements in North America resulted in some positive signals in the quarter, including a sequential improvement in full-price sales. More recently, we have been navigating headwinds that have led us to adjust our outlook for the full year. We have assessed the business and are taking additional actions to reposition where needed and further strengthen our product engine. We remain confident in our path forward.
André Maestrini
During the quarter, we continued to grow our lululemon community as we entered new markets and elevated our product, brand, and guest experiences around the world. This work included delivering successful product capsules and activations across train, tennis, and run, as well as implementing enhancements across our store fleet and digital channels that we will build upon in the months ahead. We recognize that we have more work to do, and our teams remain focused on our priorities as we continue our efforts to reignite growth and realize lululemon's full potential.
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