What's the outlook for LULU's Q4 2025 earnings?
3/28/2025 06:14pm
**Lululemon Athletica Inc. (LULU) is poised for a strong Q4 2025 earnings report**, based on the following points:
1. **Expected EPS and Revenue**: Lululemon's estimated EPS for Q4 2025 is $5.85, and the projected revenue is $3.58 billion. The company's actual EPS for the quarter was $6.14, surpassing estimates, and revenue reached $3.6 billion, marking a 13% increase year-over-year.
2. **Comparative Analysis**: Lululemon's Q4 2024 revenue increased by 14% to $3.61 billion, and diluted EPS grew by 16% to $6.14. The company's full-year revenue for 2024 reached $10.6 billion, marking a 10% increase.
3. **Growth Factors**: The company's international revenue surged by 38% in Q4, highlighting significant global market expansion. Additionally, Lululemon added 18 net new stores in the quarter, ending the year with a total of 767 stores globally.
4. **Financial Metrics**: Gross margin improved by 100 basis points to 60.4% in the fourth quarter, showcasing enhanced operational efficiency. The company's gross profit climbed by 12% to $6.27 billion in FY2024, and gross margin improved by 90 basis points to 59.2%. Operating income saw a 17% increase to $2.50 billion, resulting in operating margin growth by 150 basis points to 23.7%.
5. **Market Outlook**: Despite a soft guidance for Q1 2025 with projected revenue growth of 6% to 7%, Lululemon remains optimistic about building on its growth in 2025. The company's long-term "Power of Three ×2" growth plan aims to double its 2021 revenue by 2026.
In conclusion, Lululemon's Q4 2025 earnings are expected to reflect the company's continued success in growing its international presence, expanding its store footprint, and improving operational efficiency. The company's strong financial metrics and robust growth in previous quarters suggest that LULU's Q4 2025 earnings report is likely to be robust.