Key Moments
- Lululemon now anticipates fourth-quarter net revenue near the high end of its prior $3.50 billion to $3.585 billion range.
- Diluted EPS is expected to be close to the upper bound of the earlier $4.66 to $4.76 forecast, with no changes to margin or tax guidance.
- The retailer plans to discuss its outlook and U.S. business action plan with investors at the ICR Conference from Jan. 12 to 14.
Holiday Strength Prompts Upgraded Outlook
Lululemon has raised its expectations for fourth-quarter revenue and profit, citing robust performance during the holiday season that has positioned the athleisure company to reach the upper end of its prior guidance ranges.
The company said it now expects net revenue for the period to come in toward the high end of its previously announced range of $3.50 billion to $3.585 billion.
Guidance for diluted earnings per share has also been tightened toward the top of the earlier forecast of $4.66 to $4.76. Lululemon did not alter its projections for gross margin, selling, general and administrative (SG&A) expenses, or its effective tax rate.
$LULU Lululemon Now Sees Q4 EPS, Revenues Toward High End Of Prior Outlook Range#investing#trading#USstocks$CGON $MLTX $SPRY pic.twitter.com/q8lETabLJi
— Bblythe George (@Bblythe_Gr) January 12, 2026
Market Reaction and Analyst Expectations
In premarket action, Lululemon shares initially climbed about 4% before giving back most of those gains and were most recently higher by 0.1%.
Analysts had been anticipating fourth-quarter revenue of about $3.58 billion, which is close to the high end of Lululemon’s target range.
| Metric | Previous Q4 Guidance | Current Indication |
|---|---|---|
| Net Revenue | $3.50 billion – $3.585 billion | Toward high end of range |
| Diluted EPS | $4.66 – $4.76 | Near top of range |
| Gross Margin | Not revised | Unchanged |
| SG&A Expenses | Not revised | Unchanged |
| Effective Tax Rate | Not revised | Unchanged |
Management Commentary
Chief Financial Officer Meghan Frank highlighted the impact of the holiday period on the company’s revised view.
“Based on our performance over the holiday period, we expect to achieve the higher end of our previously communicated fourth quarter net revenue and EPS guidance,” she said. Frank added that the company “remain[s] focused on executing our action plan to drive improvement in our U.S. business and look forward to the opportunities in front of us.”
The updated outlook indicates that Lululemon is maintaining its position in a competitive apparel landscape characterized by uneven consumer demand.
Upcoming Investor Engagement at ICR Conference
Lululemon is scheduled to meet with analysts and investors at the ICR Conference from Jan. 12 to 14, where the company is expected to further discuss its latest guidance and strategic priorities.
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