Lululemon reports Q3 revenue growth of 7% amid $1 billion share buyback boost

Lululemon Athletica Inc. (NASDAQ: LULU) reported third-quarter revenue of $2.6 billion, representing a 7% increase from the prior year period, according to a company statement. The athletic apparel retailer also announced that its board of directors authorized a $1.0 billion increase to its stock repurchase program.

The company's comparable sales increased 1% for the quarter, or 2% on a constant dollar basis. Regional performance showed divergent trends, with Americas comparable sales declining 5% while international comparable sales grew 18%. Net revenue in the Americas decreased 2%, while international markets drove growth with a 33% increase.

Earnings per share came in at $2.59, compared to $2.87 in the third quarter of 2024. Gross margin decreased 290 basis points to 55.6%, while operating margin fell 350 basis points to 17.0%. The company opened 12 net new stores during the quarter, ending with 796 total locations.

For the full fiscal year 2025, Lululemon expects net revenue between $10.962 billion and $11.047 billion, representing 4% growth. Excluding the impact of fiscal 2024's 53rd week, this would represent 5% to 6% growth. The company projects diluted earnings per share of $12.92 to $13.02 for the year.

The guidance includes an estimated $210 million reduction in operating income due to anticipated higher tariff levels on U.S. imports and removal of the de minimis exemption. During the third quarter, Lululemon repurchased 1.0 million shares for $189.0 million. With the new authorization, the company has approximately $1.6 billion remaining in its share repurchase program as of the announcement date.

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