Q1 2025 Lululemon Athletica Inc Earnings Call Transcript
Key Points
- Lululemon Athletica Inc (LULU) reported a 7% increase in total revenue for Q1 2025, or 8% on a constant currency basis, reaching $2.4 billion.
- Gross margin improved by 60 basis points to 58.3%, driven by lower product costs and improved markdowns.
- The company continued its share repurchase program, buying back $430 million of stock, demonstrating confidence in its long-term prospects.
- Revenue in China Mainland increased by 22% in constant currency, showcasing strong growth in this key market.
- Lululemon Athletica Inc (LULU) maintained its full-year revenue guidance, expecting 7% to 8% growth, indicating confidence in its strategic initiatives.
- The U.S. market showed only a 2% revenue growth, with consumers remaining cautious and intentional about their buying decisions.
- The company anticipates a 110 basis point decrease in gross margin for the full year due to increased tariffs.
- SG&A expenses increased to 39.8% of net revenue, up from 38.1% last year, driven by FX revaluation losses.
- Operating margin decreased to 18.5% from 19.6% in Q1 2024, reflecting increased costs and strategic investments.
- Lululemon Athletica Inc (LULU) expects a decline in operating margin by approximately 160 basis points for the full year, primarily due to tariffs and increased markdowns.
Thank you for standing by. This is the conference operator. Welcome to the lululemon athletica inc. first-quarter 2025 financial results conference call. (Operator Instructions)
I would now like to turn the conference over to Howard Tubin, Vice President, Investor Relations for lululemon. Please go ahead.
Thank you, and good afternoon. Welcome to lululemon's first-quarter earnings conference call. Joining me today to talk about our results are Calvin McDonald, CEO; and Meghan Frank, CFO.
Before we get started, I'd like to take this opportunity to remind you that our remarks today will include forward-looking statements reflecting management's current forecast of certain aspects of lululemon's future. These statements are based on current information, which we have assessed, but which by its nature is dynamic and subject to rapid and even abrupt changes.
Actual results may differ materially from those contained in or implied by these forward-looking statements
Access to All Earning Calls and Stock Analysis | |
30-Year Financial on one screen | |
All-in-one Stock Screener with unlimited filters | |
Customizable Stock Dashboard | |
Real Time Insider Trading Transactions | |
8,000+ Institutional investors’ 13F holdings | |
Powerful Excel Add-in and Google sheets Add-on | |
All data downloadable | |
Quick customer support | |
And much more... |


