Lululemon raises fourth quarter expectations following holiday performance

Vancouver-based athletic apparel retailer Lululemon Athletica Inc. has updated its financial outlook for the fourth quarter of fiscal year 2025. The company now expects net revenue and diluted earnings per share (EPS) to reach the upper end of its previously issued guidance ranges.

The group forecasts net revenue to settle toward the high end of 3.50 billion dollars to 3.59 billion dollars. Similarly, diluted EPS is projected to align with the upper limit of the 4.66 dollars to 4.76 dollars range. The revision follows a robust holiday trading period that saw sustained demand for the brand’s technical apparel and footwear.

Meghan Frank, chief financial officer (CFO) of Lululemon, stated that the company remains committed to its strategic action plan aimed at improving performance within the US market. The domestic business has recently faced increased competition and shifting consumer preferences within the premium activewear segment.

The announcement comes as Lululemon leadership prepares to meet with analysts and investors at the ICR Conference, held from January 12, 2026, to January 14, 2026. These meetings are expected to provide further clarity on the brand’s roadmap for fiscal 2026, particularly regarding its expansion into new product categories such as footwear and menswear.

Lululemon continues to position itself as a leader in the technical athletic space, focusing on products for yoga, running, and training. Analysts will be closely monitoring whether the momentum from the holiday period can be sustained through the first quarter of 2026, especially as the brand seeks to further penetrate international markets.