Overview
- Quarterly revenue rose 1% to $3.64 billion and EPS reached $5.01, beating analyst estimates on both metrics.
- Lululemon projected 2026 sales of $11.35–$11.50 billion and EPS of $12.10–$12.30, with first‑quarter guidance also below consensus.
- The company expects about $380 million in gross U.S. tariff costs this year (roughly $220 million net), while Q4 gross margin fell around 550 basis points and year‑end inventory increased 18%.
- Americas revenue declined about 4% in Q4 as international sales grew 17%, including a 28% jump in China Mainland.
- Board changes include the addition of former Levi Strauss CEO Chip Bergh and the planned exit of director David Mussafer, as the CEO search continues and founder Chip Wilson pursues a proxy campaign; shares fell on the weaker outlook and remain down sharply year‑to‑date.