Lululemon Athletica's Q2 2025 Earnings Preview: Key Takeaways

Lululemon Athletica is expected to report Q2 2025 earnings on Sept. 4. Analysts predict an EPS of $2.87, down 8.9% YoY, and a full-year EPS of $14.47, down 1.2% YoY. However, EPS is anticipated to rebound and grow 7.6% YoY to $15.57 in fiscal 2026. Shares have declined 11.3% over the past 52 weeks, underperforming the S&P 500 and Consumer Discretionary Select Sector SPDR Fund. Analysts have a "Moderate Buy" rating overall, with 13 recommending "Strong Buy," one "Moderate Buy," and two "Strong Sell."

Lululemon Athletica Inc. (NASDAQ: LULU) is set to release its Q2 2025 earnings on Thursday, September 4. Analysts expect the athletic apparel retailer to report an earnings per share (EPS) of $2.87, representing an 8.9% year-over-year (YoY) decrease from the $3.15 reported in the year-ago quarter [2]. For the full year 2025, analysts predict an EPS of $14.47, down 1.2% from $14.64 in 2024. However, EPS is anticipated to rebound and grow 7.6% YoY to $15.57 in fiscal 2026 [2].

Over the past 52 weeks, Lululemon Athletica's stock has declined by 11.3%, underperforming both the S&P 500 Index's 18.3% gain and the Consumer Discretionary Select Sector SPDR Fund's (XLY) 24.5% return over the same period [2]. Despite this, analysts maintain a cautiously optimistic view, with a "Moderate Buy" rating overall. Among 30 analysts covering the stock, 13 recommend "Strong Buy," one advises "Moderate Buy," 12 indicate "Hold," two advise "Moderate Sell," and two give "Strong Sell" [2].

The company's stock has been volatile recently, with a significant drop following the release of its Q1 2025 earnings. On June 5, Lululemon Athletica reported better-than-expected Q1 2025 earnings of $2.60 per share and revenue of $2.4 billion. However, the stock plunged 19.8% the next day due to its reduced full-year EPS guidance to $14.58 - $14.78 and a weaker-than-expected Q2 EPS forecast of $2.85 - $2.90 [2]. The company also warned of a 2% decline in America's sales and rising tariffs pressuring margins more than expected, with full-year gross margin forecast to shrink by 110 basis points [2].

References:
[1] https://www.marketbeat.com/instant-alerts/william-blair-issues-pessimistic-estimate-for-lulu-earnings-2025-07-18/
[2] https://www.barchart.com/story/news/33681362/lululemon-athletica-s-quarterly-earnings-preview-what-you-need-to-know