Lululemon Athletica LULU 2026Q1 Earnings Preview Upside Potential on Strong International Growth

Forward-Looking Analysis
Wall Street analysts project Lululemon Athletica (LULU) will report Q1 2026 earnings of $2.58 per share, a 1.6% increase year-over-year. Expected revenues are $2.36 billion, reflecting a 6.7% rise from the previous year's quarter. Notably, there has been a 1.1% downward revision in the consensus EPS estimate over the last 30 days, suggesting a cautious outlook. Analysts forecast 'Net Revenue by Channel- Company-operated stores' at $1.17 billion, up 9.2% year-over-year, and 'Net Revenue by Channel- E-commerce' at $949.91 million, up 4.9%. 'Geographic Revenues- China Mainland' is expected to see a significant 21.7% increase, reaching $369.72 million. Lululemon shares have gained 14.2% in the past month, and the company holds a Zacks Rank #3 (Hold), indicating it should closely follow market trends.

Historical Performance Review
In Q4 2025, Lululemon Athletica achieved remarkable financial results, with revenue hitting $3.61 billion. The company posted a net income of $748.40 million, translating to an EPS of $6.44. Gross profit reached an impressive $2.18 billion, highlighting strong operational efficiency and profitability during the quarter.

Additional News
Lululemon Athletica has been experiencing strong international growth, particularly in China, where revenue increased by 52% recently. Analysts have set a target price of $460.00 for Lululemon, indicating confidence in the company's performance. Despite global economic challenges, Lululemon continues to expand its presence, evidenced by a projected increase in total stores from 711 to 771 year-over-year. Additionally, the company's total gross square footage is expected to rise from 2,988 Ksq ft to 3,348.78 Ksq ft. Lululemon's shares have outperformed the Zacks S&P 500 composite, reflecting investor optimism.

Summary & Outlook
Lululemon Athletica's financial health appears strong, with promising growth catalysts such as international expansion, particularly in China. The company's projected revenue and EPS growth, alongside increased store count and gross square footage, indicate a positive outlook. However, the slight downward revision in EPS estimates suggests potential caution. Overall, Lululemon's robust international growth and strategic expansions position it for continued success, leading to a bullish outlook for the company's future performance.