Lululemon Athletica Inc. (NASDAQ:LULU) on Monday announced it has raised expectations for its fiscal 2025 fourth quarter, stating that holiday-period execution should push results to the top end of its prior ranges.
The company now expects fourth-quarter net revenue to land near the top of its $3.50 billion to $3.585 billion forecast, below the $3.595 billion consensus estimate.
Diluted earnings per share are also projected toward the upper end of the $4.66 to $4.76 range, trailing the $5.05 analyst estimate, following better-than-expected holiday performance.
Lululemon kept its outlook for gross margin, selling, general, and administrative expenses, and effective tax rate unchanged.
CFO Meghan Frank said the company is leaning into an action plan aimed at improving its U.S. business. “Based on our performance over the holiday period, we expect to achieve the higher end of our previously communicated fourth quarter net revenue and EPS guidance. We remain focused on executing our action plan to drive improvement in our U.S. business and look forward to the opportunities in front of us,” Frank said.
The outlook update comes as boardroom pressure builds during the CEO search, with the founder advocating for changes. More detail appears in this board shakeup coverage, which outlines the push for a reset at the top.
Management is scheduled to meet with analysts and investors at the ICR Conference from January 12 to 14, 2026.
Recent Quarterly Performance
Lululemon delivered a strong third quarter, topping earnings and revenue estimates as international momentum outweighed continued softness in the Americas. Revenue increased 7% year over year, driven by a 33% rise internationally, while the U.S. business continued to face pressure.
The company raised its fiscal 2025 outlook, calling for GAAP EPS of $12.92 to $13.02 and revenue of $10.96 billion to $11.05 billion.
LULU Price Action: Lululemon Athletica shares were up 1.77% at $207.51 at the time of publication on Monday, according to Benzinga Pro data.
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