After the close of trading on June 4 (U.S. Eastern Time), Vancouver-headquartered Canadian athletic lifestyle brand lululemon athletica inc. (Nasdaq: LULU) released its financial results for the first quarter of fiscal year 2026 ended May 3, 2026: global net revenue increased by 4% year-on-year to USD 2.5 billion (+2% at constant currency), of which international business net revenue grew by 22% year-on-year (+16% at constant currency). In terms of profitability, operating income decreased by 37% year-on-year to USD 276.9 million, while net income declined by 38% year-on-year to USD 195 million.
Within international markets, the Chinese Mainland delivered the strongest performance, with net revenue surging 30% year-on-year (+23% at constant currency). In comparable sales, the Chinese Mainland recorded a 20% year-on-year increase (+13% at constant currency).
Above: lululemon’s “Yoga Meets the Great Wall” Yoga Festival was held at Huanghuacheng Water Great Wall in Huairou, Beijing
Meghan Frank, Interim Co-Chief Executive Officer and Chief Financial Officer of lululemon, said “We experienced a solid start to 2026 as our teams executed with speed, agility, and discipline. Our work to drive improvements in North America resulted in some positive signals in the quarter, including a sequential improvement in full-price sales. More recently, we have been navigating headwinds that have led us to adjust our outlook for the full year. We have assessed the business and are taking additional actions to reposition where needed and further strengthen our product engine. We remain confident in our path forward.”
André Maestrini, Interim Co-Chief Executive Officer, President and Chief Commercial Officer, said that “During the quarter, we continued to grow our lululemon community as we entered new markets and elevated our product, brand, and guest experiences around the world. This work included delivering successful product capsules and activations across train, tennis, and run, as well as implementing enhancements across our store fleet and digital channels that we will build upon in the months ahead. We recognize that we have more work to do, and our teams remain focused on our priorities as we continue our efforts to reignite growth and realize lululemon’s full potential.”
Speaking about the China market, André Maestrini said during the earnings call that overall, the market remains dynamic. The team continues to deliver distinctive lululemon experiences to guests, while enhancing brand awareness and differentiation through mindful movement and a wide range of community activities. In yoga, one of the most representative examples is the “Yoga Meets the Great Wall” Yoga Festival held in Beijing on May 30, which brought together more than 2,000 guests and 70 ambassadors and yoga masters from China and abroad. This series of events will also be rolled out in more key cities across China and other countries. In training, from late June to August, the company will host the sixth edition of the “Summer Sweat Games,” another signature annual community event created by the China team, connecting communities nationwide through collective workouts and team-based sports experiences.
Looking ahead to the second quarter and beyond in the Chinese Mainland market, André Maestrini said that the company expects sales in the region to achieve mid-to-high double-digit growth in the second quarter and maintains a full-year growth outlook of around 20%, demonstrating continued positive momentum in the Chinese Mainland business.
Regarding store expansion, Meghan Frank added that in fiscal 2026, lululemon plans to open 40 to 45 new company-operated stores globally and will progressively optimise approximately 35 existing locations, which is expected to drive low double-digit growth in total retail square footage. The new store pipeline includes approximately 10 to 15 locations in North America, around 8 of which will be in Mexico, and approximately 25 to 30 locations in international markets, the majority of which will be in the China market.
As of May 3, 2026, key financial data for lululemon’s first quarter of fiscal 2026 are as follows:
By region:
- Americas: net revenue decreased by 4% year-on-year (-4% at constant currency), with comparable sales down 5% year-on-year (-6% at constant currency).
- Chinese Mainland: net revenue increased by 30% year-on-year (+23% at constant currency), with comparable sales up 20% year-on-year (+13% at constant currency).
- Rest of World: net revenue increased by 13% year-on-year (+9% at constant currency), with comparable sales up 5% year-on-year (+1% at constant currency).
Outlook for fiscal 2026:
- For the second quarter, lululemon expects net revenue to range between USD 2.45 billion and USD 2.475 billion, representing a year-on-year decline of 3% to 2%. Diluted earnings per share for the quarter are expected to be between USD 1.76 and USD 1.81.
- For the full fiscal year 2026, lululemon expects net revenue to range between USD 11.0 billion and USD 11.15 billion, representing a year-on-year change of -1% to 0%. Full-year diluted earnings per share are expected to be between USD 10.95 and USD 11.15.
| Source: Company financial report
| Image Credit: Brand official
| Editor: Luxeplace
