Athleisure giant Lululemon has provided cautious guidance amid a difficult period for the retailer as tariffs impact profits and a proxy fight involving founder Chip Wilson continues.
The news was announced as Lululemon announced its financial results for the fourth quarter and fiscal year ending on February 1, 2026.
For the fourth quarter of 2025 net revenue increased 1% to $3.6 billion. Americas net revenue declined by 4%, whereas International net revenue grew by 17%.
Lululemon expects first-quarter sales to be between $2.40 billion and $2.43 billion, below estimates of $2.47 billion. It projects earnings per share will range from $1.63 to $1.68, also under the estimated $2.07.
For the full year, Lululemon is expecting sales to be between $11.35 billion and $11.50 billion, below expectations of $11.52 billion.
Meghan Frank, Interim Co-CEO and Chief Financial Officer, stated: “We are pleased to achieve fourth quarter revenue and EPS results ahead of our expectations. As we begin our new fiscal year, we are focused on executing on our action plan, offering new and differentiated products to our guests, and elevating their experiences with lululemon. Driving improvement in our full-price sales over the course of 2026 is also a key priority, particularly in North America, and will enable us to enhance our brand health and deliver long-term growth and value creation for shareholders.”
André Maestrini, Interim Co-CEO, President, and Chief Commercial Officer, stated: “Throughout 2025, we reported double-digit revenue growth in our international business and are taking action to incorporate learnings from across our regions to drive forward our strategies. Our teams are energized by the initial response to our recent product launches and continue to deliver successful guest activations globally. Looking ahead, we are encouraged by our opportunities in North America and around the world and are grateful to our teams for their commitment to delivering the products and experiences our guests love.”
The uncertain guidance comes as Lululemon founder Chip Wilson, who is engaged in a proxy fight with the company, commented on Wednesday that lead director David Mussafer’s decision to leave the board was “a step in the right direction,” but he emphasized the need for a “substantial” board overhaul.
Chip Bergh, former President and CEO of Levi Strauss & Co., will succeed Mussafer on Lululemon’s Board of Directors, effective immediately.
“I want to be clear that while yesterday’s announcement is a step in the right direction, glaring governance deficiencies remain,” Wilson said.
“lululemon has built one of the most distinctive brands in the athletic and lifestyle sector, grounded in innovation, design, technical expertise, and deep connections with its guests on a local level around the world,” said Chip Bergh. “I am honored to join the Board at a pivotal time and excited to work with my fellow directors to advance the company’s strategic vision.”
Lululemon shares declined about 2% in premarket trading after the announcement.
By CEO NA Editorial Staff
