Canadian yoga and athletic apparel brand Lululemon (NASDAQ: LULU) has released its financial results for the second quarter of fiscal year 2025, ended August 3, 2025: global net revenue rose 7% year-on-year to USD 2.5 billion, with international net revenue increasing 22% year-on-year.
Lululemon CEO Calvin McDonald stated, “While we continued to see positive momentum overall in our international regions in the second quarter, we are disappointed with our U.S. business results and aspects of our product execution. We have closely assessed the drivers of our underperformance and are continuing to take the necessary actions to strengthen our merchandise mix and accelerate our business. We feel confident in the opportunity ahead and plans we have in place to drive long-term growth.”
Regarding the Chinese Mainland market, Calvin McDonald specifically noted during the earnings call, “As Lululemon’s second-largest market globally, net revenue in the Chinese Mainland grew 25% year-on-year in the second quarter, or 24% in constant dollars. During the quarter, we opened five new stores in the Chinese Mainland and continued to boost brand awareness through a variety of activities and experiences, including the fifth edition of the Summer Sweat Challenge, which sparked a wave of enthusiastic participation.”
On August 23, the national finals of the 2025 Summer Sweat Challenge concluded successfully in Chengdu.
As of August 3, key financial highlights for Lululemon’s second quarter of fiscal year 2025 are as follows:
In terms of products, Calvin McDonald commented, “New products such as Align™, Daydrift™, and Be Calm were well received by guests. Based on our ‘Science of Feel’ design philosophy, we continue to demonstrate innovation and the ability to identify and meet previously unmet needs. At the same time, we are creating distinctive activewear and continue to achieve steady growth across categories including yoga, running, training, tennis, and golf.”
Lululemon held the Align™ 10th Anniversary carnival event at Beijing Workers’ Stadium.
Lululemon CFO Meghan Frank stated, “In the second quarter, we exceeded expectations on EPS, but revenue fell short of our guidance driven predominantly by our U.S. business. We are also navigating industry-wide challenges, including higher tariff rates. In light of these dynamics, we are revising our full year outlook. As we begin the back half of the year, our brand and balance sheet remain strong, and we will continue to exercise financial discipline and strategically invest in our growth potential.”
During the earnings call, Meghan Frank also mentioned, “In 2025, the company plans to open approximately 15 new stores in the Americas, nearly half of which will be in Mexico. Meanwhile, in our international expansion, China will be a key focus for new store openings.”
Lululemon expects net revenue for the third quarter of fiscal 2025 to range between USD 2.47 billion and USD 2.5 billion, representing a year-on-year increase of approximately 3% to 4%. Diluted earnings per share for the quarter are expected to be between USD 2.18 and USD 2.23.
For the full fiscal year 2025, Lululemon expects net revenue to be in the range of USD 10.85 billion to USD 11.0 billion, representing an approximate year-on-year growth of 2% to 4%; excluding the 53rd week in fiscal 2024, this represents growth of approximately 4% to 6%. Full-year diluted earnings per share are expected to range from USD 12.77 to USD 12.97.
| Source: Official press release
| Image Credit: Official press release, Luxe.CO
| Editor: LeZhi
