Lululemon has reported a 7% rise in third‑quarter revenues to $2.6 billion (£1.94 billion), pushed by robust worldwide demand even as momentum within the Americas softened. This comes simply hours after the athleisurewear large confirmed that CEO Calvin McDonald will depart the model in early 2026 after seven years within the function.
The Vancouver-based retailer recorded a 1% improve in comparable sales, or 2% on a continuing-forex foundation. But efficiency diverse sharply by area. International revenues surged 33%, whereas the Americas declined 2%.
Calvin McDonald, Chief Executive Officer, mentioned: “In the third quarter, our groups remained centered on driving enhancements inside our US enterprise and sustaining momentum in our worldwide areas. We are starting to make progress in opposition to our motion plan and proceed to count on to see the influence of this work in 2026.
“As we enter the holiday season, we are encouraged by our early performance, and I would like to thank all our Lululemon team members for their hard work and dedication to our guests and communities.”
Lululemon confirmed that McDonald will step down as CEO and director on 31 January 2026, then serve as a senior advisor via 31 March whereas the corporate searches for his successor. While the Board searches for his substitute, Board Chair Marti Morfitt will tackle the expanded function of Executive Chair, whereas Chief Financial Officer Meghan Frank and Chief Commercial Officer André Maestrini will serve as interim co-CEOs.
Since becoming a member of Lululemon in 2018, McDonald has overseen a interval of great development and innovation, tripling annual revenues, increasing the corporate into over 30 geographies. He mentioned: “Serving as CEO of Lululemon has been the highlight of my career, and I am incredibly proud of everything our team has accomplished over the last seven years. Together, we have transformed the athletic apparel industry and the opportunity ahead for Lululemon is substantial.”
Despite the highest-line lift, profitability got here beneath stress. Gross revenue rose 2% to $1.4 billion (£1.05 billion), however gross margin fell by 290 foundation factors to 55.6%. Operating earnings declined 11% to $435.9 million (£325.8 million), with working margin right down to 17%.
The retailer opened 12 web new shops within the interval, ending the quarter with 796 globally.
During the quarter, Lululemon additionally repurchased 1 million shares for $189 million (£141 million). Following the December authorisation, it now has round $1.6 billion (£1.2 billion) remaining beneath its buyback programme.
Chief Financial Officer, Meghan Frank, added: “We delivered better-than-expected revenue and EPS in the third quarter as a result of our disciplined execution and ongoing strength internationally. Looking forward, we will continue to leverage our strong financial position to invest in our growth initiatives, while maintaining operational rigour. “
For This fall, the enterprise expects revenues between $3.5 billion and $3.585 billion, representing a decline of three% to 1%, or development of two% to 4% excluding the 53rd week of 2024.
Full-year income is now anticipated to achieve between $10.962 billion and $11.047 billion (£2.62 billion £8.26 billion), representing roughly 4% development.
The outlook contains an estimated $210 million (£157 million) discount in working earnings because of assumed will increase in US tariffs and the removing of the de minimis exemption. Lululemon warned that precise outcomes might differ relying on tariff charges, sourcing financial savings, shopper demand and regulatory timing.