Core Viewpoint - Lululemon Athletica's Q1 2025 earnings report and lowered full-year profit guidance have raised concerns about intense competition and tariff policies undermining the company's growth ambitions, leading to a significant stock drop of 23% post-announcement [1] Financial Performance - Q1 net revenue increased by 7% year-over-year to $2.37 billion, slightly above analyst expectations of $2.36 billion - Comparable sales growth was 1%, below the analyst average expectation of 2.8% - Revenue growth in the Americas was 3%, with comparable sales down 2%; international market revenue grew by 19%, with comparable sales up 6% [1] - Gross profit rose by 8% to $1.383 billion, with a gross margin of 58.3%, up from 57.7% year-over-year - Operating profit was $439 million, a 1% increase year-over-year, but the operating margin decreased by 110 basis points to 18.5% - Net profit was $314 million, down from $321 million year-over-year, with diluted earnings per share of $2.60, exceeding analyst expectations of $2.58 [1] Future Outlook - For Q2, Lululemon expects revenue between $2.54 billion and $2.56 billion, with analyst expectations at $2.56 billion; EPS is projected between $2.85 and $2.90, while analysts expect $3.29 [1] - For the full year 2025, revenue is expected to be between $11.15 billion and $11.3 billion, with analyst expectations at $11.24 billion; EPS is projected between $14.58 and $14.78, down from previous guidance of $14.95 to $15.15, with analyst expectations at $14.89 [2] Competitive Landscape and Challenges - The CEO expressed dissatisfaction with growth in the U.S. market, noting that consumers are more cautious and selective in their purchasing decisions, which has been a recurring theme in previous reports [2] - The company plans to strategically raise prices on select products to mitigate tariff impacts, with adjustments starting in the latter half of the current quarter and extending into Q3 [3] - Lululemon is attempting to boost demand by entering new product categories and expanding into running, tennis, and golf, while facing changing fashion trends favoring looser styles over its signature tight yoga pants [3][4] Product Performance - The company is satisfied with the early performance of new products, including high-waisted pants and athletic shorts; however, analysts note that tariff pressures and weak store traffic overshadow any positive feedback from new offerings [4]

Core Insights - Lululemon reported revenue of $2.37 billion for the quarter ended April 2025, marking a year-over-year increase of 7.3% and an EPS of $2.60, up from $2.54 a year ago, exceeding Zacks Consensus Estimates for both revenue and EPS [1] Financial Performance - Revenue of $2.37 billion surpassed the Zacks Consensus Estimate of $2.36 billion, resulting in a surprise of +0.59% [1] - EPS of $2.60 compared to the consensus estimate of $2.59, yielding an EPS surprise of +0.39% [1] Key Metrics - Total stores increased to 770, slightly above the average estimate of 769 [4] - Total Comparable Sales growth was 1%, below the average estimate of 3.1% [4] - Total Gross Square Footage reached 3,415 Ksq ft, exceeding the average estimate of 3,337.91 Ksq ft [4] Geographic Revenue Breakdown - Americas revenue was $1.67 billion, matching analyst estimates and reflecting a +3.2% year-over-year change [4] - China Mainland revenue was $368.10 million, slightly below the estimate of $369.65 million, but showing a +21.2% year-over-year increase [4] - Rest of World revenue was $328 million, above the average estimate of $322.08 million, with a +16% year-over-year change [4] - United States revenue was $1.36 billion, slightly below the estimate of $1.37 billion, representing a +1.7% year-over-year change [4] Revenue by Channel - Company-operated stores generated $1.15 billion, below the average estimate of $1.17 billion, with a +7.7% year-over-year change [4] - E-commerce revenue was $960.89 million, exceeding the estimate of $949.91 million, reflecting a +6.1% year-over-year increase [4] - Other revenue totaled $256.66 million, above the average estimate of $248.18 million, with a +10.4% year-over-year change [4] Revenue by Category - Other categories generated $290.70 million, slightly below the average estimate of $296.12 million, with a +8.5% year-over-year change [4] Stock Performance - Lululemon shares returned +21.6% over the past month, outperforming the Zacks S&P 500 composite's +5.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

Core Viewpoint - Lululemon has cut its profit forecast for the year due to higher costs from US tariffs and weak demand for its new products, leading to a significant drop in its stock price [1][6]. Group 1: Financial Performance - The company now expects annual profit between $14.58 and $14.78 per share, down from previous expectations of $14.95 to $15.15 [6]. - Lululemon's revenue forecast for the second quarter is between $2.54 billion and $2.56 billion, which aligns with market expectations [8]. Group 2: Market Challenges - The company is facing lower store traffic in the Americas, attributed to economic uncertainty, inflation, lower consumer confidence, and changes in discretionary spending [1][3]. - Competitors like Alo Yoga and Vuori are gaining traction, making it difficult for Lululemon to boost sales despite new product offerings [3][8]. Group 3: Strategic Responses - Lululemon plans to implement modest price increases on a small portion of its product assortment and will negotiate with vendors to cut costs [4]. - In 2024, 40% of Lululemon's products were manufactured in Vietnam, and 28% of its fabrics were sourced from mainland China, indicating a diversification strategy in sourcing [4].

Company Performance - Lululemon reported quarterly earnings of $2.60 per share, exceeding the Zacks Consensus Estimate of $2.59 per share, and showing an increase from $2.54 per share a year ago, representing an earnings surprise of 0.39% [1] - The company posted revenues of $2.37 billion for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 0.59%, and up from $2.21 billion year-over-year [2] - Over the last four quarters, Lululemon has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Outlook - Lululemon shares have declined approximately 12.4% since the beginning of the year, while the S&P 500 has gained 1.5% [3] - The current consensus EPS estimate for the upcoming quarter is $3.27 on revenues of $2.56 billion, and for the current fiscal year, it is $14.72 on revenues of $11.19 billion [7] Industry Context - The Textile - Apparel industry, to which Lululemon belongs, is currently ranked in the bottom 28% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Lululemon's stock performance [5]

Financial Data and Key Metrics Changes - Total revenue increased by 7% or 8% on a constant currency basis to $2.4 billion in Q1 [9][25] - Gross margin increased by 60 basis points to 58.3% compared to the previous year [9][27] - Earnings per share were $2.6, exceeding expectations [9] - SG&A expenses were $943 million, or 39.8% of net revenue, compared to 38.1% in the same period last year [28] Business Line Data and Key Metrics Changes - Men's revenue increased by 8%, while women's revenue increased by 7% [26] - Accessories and other categories grew by 8% [26] - Comparable sales increased by 1% overall [25] Market Data and Key Metrics Changes - Revenue in North America grew by 3% or 4% in constant currency, with Canada seeing a 9% increase [25][10] - In China Mainland, revenue increased by 21% or 22% in constant currency, with comparable sales up by 8% [25][11] - The Rest of World segment saw a revenue increase of 16% or 17% in constant currency [25][11] Company Strategy and Development Direction - The company aims to maximize existing markets while expanding into new ones, with recent store openings in Denmark and Turkey [12] - Plans to enter Italy as a new company-operated market and Belgium and The Czech Republic under a franchise model later this year [12] - The focus remains on product innovation and community engagement through brand activations [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current environment, citing a strong balance sheet with $1.3 billion in cash and no debt [19] - The company is maintaining its revenue guidance for the full year, expecting growth of 7% to 8% [12][31] - Management acknowledged the cautious consumer behavior in the U.S. but noted market share gains in the premium athletic wear segment [11][72] Other Important Information - The company repurchased $430 million of stock during the quarter, demonstrating confidence in long-term prospects [9] - Inventory increased by 23% in dollar terms, impacted by tariffs and foreign exchange [30] Q&A Session Summary Question: Can you expand on the mitigation efforts regarding tariffs? - Management highlighted strategic price increases on select items and efficiency actions in sourcing as mitigation strategies [42][43] Question: What are the comp drivers and traffic trends? - Management noted a decline in store traffic but an increase in average transaction size, with no material changes in trends month to month [51][52] Question: How are tariffs impacting margins? - The company expects a decrease in operating margin due to tariffs, with mitigation efforts planned for the second half of the year [57][58] Question: What is the outlook for inventory and markdowns? - Management indicated that while markdowns have not yet been necessary, they are planning for potential increases due to macroeconomic concerns [64][82] Question: How is the competitive landscape affecting pricing strategies? - Management is monitoring promotional activity in the U.S. and anticipates a dynamic competitive market, particularly in the second half of the year [87][88]

Financial Data and Key Metrics Changes - Total revenue increased by 7% or 8% on a constant currency basis to $2.4 billion in Q1 [7][23] - Gross margin increased by 60 basis points to 58.3% compared to the previous year [7][26] - Earnings per share were $2.6, exceeding expectations [7] - SG&A expenses were $943 million, or 39.8% of net revenue, compared to 38.1% in the same period last year [27] Business Line Data and Key Metrics Changes - Men's revenue increased by 8%, while women's revenue increased by 7% [25] - Accessories and other categories grew by 8% [25] - Comparable sales increased by 1% overall [23] Market Data and Key Metrics Changes - In North America, revenue grew by 3% or 4% in constant currency, with Canada seeing a 9% increase [24][25] - In China Mainland, revenue increased by 21% or 22% in constant currency, with comparable sales up by 8% [25] - The Rest of World segment saw a revenue increase of 16% or 17% in constant currency [25] Company Strategy and Development Direction - The company aims to maximize existing markets while expanding into new ones, with recent store openings in Denmark and Turkey [10] - Plans to enter Italy as a new company-operated market and Belgium and The Czech Republic under a franchise model later this year [10] - Focus on product innovation and community engagement through brand activations [13][14] Management's Comments on Operating Environment and Future Outlook - Management remains confident in maintaining revenue guidance for the full year, expecting 7% to 8% growth [6][10] - The company is well-positioned to navigate tariff impacts and is focusing on strategic pricing and supply chain efficiencies [16][19] - Management acknowledges cautious consumer behavior in the U.S. but is optimistic about market share gains [9][70] Other Important Information - The company repurchased $430 million of stock during the quarter, reflecting confidence in long-term prospects [7] - Inventory increased by 23% in dollars and 16% in units, impacted by tariffs and foreign exchange [29] Q&A Session Summary Question: Can you expand on the mitigation efforts regarding guidance for the balance of the year? - Management plans to take strategic price increases on a small portion of the assortment and pursue sourcing efficiencies [42][43] Question: What are the comp drivers and traffic trends? - There was a decline in store traffic, but an uptick in average transaction size was noted [52][53] Question: How are tariffs impacting margins and pricing strategy? - Tariffs are expected to have a significant impact on margins, with strategic pricing adjustments planned [56][58] Question: What is the outlook for inventory and markdowns? - Inventory levels are being closely monitored, with markdowns expected to increase slightly due to macroeconomic concerns [64][80] Question: How is the company performing in China? - The company has 154 stores in China and plans to reach approximately 200, with strong double-digit growth expected [101][104]

Core Insights - Lululemon exceeded Wall Street expectations for fiscal first-quarter earnings but lowered its full-year earnings guidance due to a challenging macroeconomic environment [1][2] - The company's shares fell approximately 20% in after-hours trading following the announcement [1] Financial Performance - For the fiscal first quarter, Lululemon reported a net income of $314 million, or $2.60 per share, compared to $321 million, or $2.54 per share, in the same quarter last year [5] - First-quarter revenue increased to $2.37 billion, up from about $2.21 billion during the same period in 2024 [5] - Comparable sales rose 1% year over year, which was below the anticipated 3% [9] Earnings Guidance - The company revised its full-year earnings per share guidance to a range of $14.58 to $14.78, down from the previous range of $14.95 to $15.15 [2] - For the second quarter, Lululemon expects earnings per share between $2.85 and $2.90, compared to Wall Street's expectation of $3.29 [7] Revenue Expectations - Lululemon anticipates second-quarter revenue to be between $2.54 billion and $2.56 billion, while full-year revenue is expected to remain unchanged at $11.15 billion to $11.3 billion [6] Market Context - The company is facing challenges from tariffs and a slowing U.S. economy, similar to other retailers who have also reduced their guidance [3][4] - Competitors in the athleticwear sector, such as Gap and Nike, are also adjusting their strategies in response to tariff impacts [4] Manufacturing and Supply Chain - In 2024, 40% of Lululemon's products were manufactured in Vietnam, with significant portions also produced in Cambodia, Sri Lanka, Indonesia, and Bangladesh [8] - The company relies on suppliers for manufacturing and does not own any production facilities [8] Margins and Stock Performance - Gross margin for the quarter was 58.3%, exceeding the expected 57.7% [9] - As of the latest close, Lululemon's stock has declined about 13% year-to-date [9]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) For Q1 2025, lululemon reported net revenue of $2.37 billion (up 7%), a slight net income decrease to $314.6 million, and a significant shift to a $119.0 million net cash outflow from operations [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of May 4, 2025, total assets slightly decreased to $7.43 billion, with cash and equivalents falling to $1.33 billion and inventories rising to $1.65 billion Consolidated Balance Sheet Highlights (in thousands) | Account | May 4, 2025 | February 2, 2025 | | :--- | :--- | :--- | | **Current Assets** | | | | Cash and cash equivalents | $1,325,272 | $1,984,336 | | Inventories | $1,652,091 | $1,442,081 | | Total current assets | $3,582,517 | $3,980,302 | | **Total Assets** | **$7,430,543** | **$7,603,292** | | **Current Liabilities** | | | | Accounts payable | $303,975 | $271,406 | | Total current liabilities | $1,572,385 | $1,839,630 | | **Total Liabilities** | **$3,140,973** | **$3,279,245** | | **Total Stockholders' Equity** | **$4,289,570** | **$4,324,047** | [Consolidated Statements of Operations and Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) Q1 2025 net revenue grew 7.3% to $2.37 billion and gross profit rose 8.5% to $1.38 billion, but net income slightly declined 2.1% to $314.6 million despite higher diluted EPS Q1 2025 Statement of Operations Highlights (in thousands, except per share data) | Metric | Q1 2025 (ended May 4) | Q1 2024 (ended Apr 28) | YoY Change | | :--- | :--- | :--- | :--- | | Net revenue | $2,370,660 | $2,208,891 | +7.3% | | Gross profit | $1,383,126 | $1,275,068 | +8.5% | | Income from operations | $438,625 | $432,642 | +1.4% | | Net income | $314,572 | $321,421 | -2.1% | | Diluted earnings per share | $2.60 | $2.54 | +2.4% | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 saw a net cash outflow of $119.0 million from operations, a reversal from prior year, driven by inventory increases and $434.4 million in stock repurchases Q1 Cash Flow Summary (in thousands) | Activity | Q1 2025 (ended May 4) | Q1 2024 (ended Apr 28) | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(118,954) | $127,524 | | Net cash used in investing activities | $(106,842) | $(131,537) | | Net cash used in financing activities | $(467,974) | $(328,628) | | **Decrease in cash and cash equivalents** | **$(659,064)** | **$(343,299)** | - The company repurchased **$434.4 million** of its common stock in Q1 2025, a significant increase from the **$299.5 million** repurchased in Q1 2024[16](index=16&type=chunk)[67](index=67&type=chunk) [Notes to the Unaudited Interim Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Consolidated%20Financial%20Statements) Notes detail accounting policies, credit facilities, stock-based compensation, segment performance with strong China Mainland growth, disaggregated revenue, and ongoing legal proceedings including a securities class action - The company operates through **770** company-operated stores as of May 4, 2025, an increase of 3 stores from the end of the prior fiscal year[20](index=20&type=chunk) - The company has a **$400.0 million** Americas revolving credit facility and a **300.0 million Chinese Yuan** facility, with no significant borrowings outstanding as of May 4, 2025[29](index=29&type=chunk)[30](index=30&type=chunk)[35](index=35&type=chunk) - A securities class action lawsuit was filed against the company and certain officers on August 8, 2024, alleging false and misleading statements. The company intends to defend the action vigorously[81](index=81&type=chunk) Q1 2025 Segment Performance (in thousands) | Segment | Net Revenue | Income from Operations | YoY Revenue Growth | | :--- | :--- | :--- | :--- | | Americas | $1,674,558 | $589,331 | 3.2% | | China Mainland | $368,101 | $153,635 | 21.2% | | Rest of World | $328,001 | $72,856 | 16.0% | Q1 2025 Net Revenue by Category (in thousands) | Category | Q1 2025 | Q1 2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Women's apparel | $1,535,172 | $1,435,241 | +7.0% | | Men's apparel | $544,788 | $505,698 | +7.7% | | Accessories and other | $290,700 | $267,952 | +8.5% | Q1 2025 Net Revenue by Channel (in thousands) | Channel | Q1 2025 | Q1 2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Company-operated stores | $1,153,107 | $1,070,525 | +7.7% | | E-commerce | $960,890 | $905,787 | +6.1% | | Other channels | $256,663 | $232,579 | +10.4% | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported Q1 2025 net revenue growth of 7% to $2.4 billion, driven by international markets, while Americas comparable sales declined 2% and operating margin decreased due to higher SG&A expenses Q1 2025 Financial Highlights vs. Q1 2024 | Metric | Q1 2025 | Change | | :--- | :--- | :--- | | Net Revenue | $2.4 billion | +7% (+8% constant dollar) | | Comparable Sales | +1% | - | | Gross Margin | 58.3% | +60 bps | | Operating Margin | 18.5% | -110 bps | | Diluted EPS | $2.60 | from $2.54 | - The Americas region experienced lower store traffic and a **2% decrease** in comparable sales (**1%** on a constant dollar basis), which management attributes to economic uncertainty, inflationary pressures, and changes in discretionary spending[93](index=93&type=chunk) - Growth was strong internationally, with China Mainland net revenue increasing **21%** (**22%** constant dollar) and Rest of World net revenue increasing **16%** (**17%** constant dollar)[98](index=98&type=chunk) - Selling, general and administrative (SG&A) expenses increased by **11.9%** to **$942.9 million**, rising to **39.8%** of net revenue from **38.1%** in the prior year, primarily due to higher head office costs and costs related to operating channels[100](index=100&type=chunk)[102](index=102&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from foreign currency fluctuations, which reduced Q1 2025 revenue by $21.3 million, and inflationary pressures, while interest rate risk remains low due to an undrawn credit facility - Foreign currency fluctuations reduced reported revenue by **$21.3 million** in Q1 2025 compared to Q1 2024[144](index=144&type=chunk) - The company hedges a portion of its net investment in its Canadian subsidiary and also uses forward contracts to economically hedge revaluation gains and losses on monetary assets and liabilities in foreign currencies[145](index=145&type=chunk)[146](index=146&type=chunk) - Interest rate risk is currently low, as the company's **$400.0 million** revolving credit facility, which bears a variable interest rate, had no borrowings outstanding as of May 4, 2025[149](index=149&type=chunk) - Inflationary pressures on costs for products, transportation, labor, and raw materials may adversely affect operating results if they cannot be offset[154](index=154&type=chunk) [Item 4. Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of May 4, 2025, with no material changes to internal control over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of May 4, 2025[156](index=156&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[157](index=157&type=chunk) [PART II. OTHER INFORMATION](index=41&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal matters, with significant proceedings like a securities class action lawsuit detailed in Note 12, and expects no material adverse financial impact - The company refers to Note 12 for details on significant legal proceedings, including a securities class action and derivative lawsuits[160](index=160&type=chunk) [Item 1A. Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks including brand reputation damage, intense competition, supply chain disruptions, economic downturns, cybersecurity threats, and evolving ESG pressures, alongside international operational and trade risks - **Business Risks:** Success is highly dependent on maintaining brand value, operating in a competitive market, and anticipating consumer trends. Failure to do so could lead to lower sales and excess inventory[162](index=162&type=chunk)[164](index=164&type=chunk)[167](index=167&type=chunk) - **Supply Chain Risks:** The company relies on a limited number of international suppliers, primarily in Asia. Approximately **40%** of products were made in Vietnam and **49%** by the top five vendors in 2024. Disruptions could significantly impact product availability[199](index=199&type=chunk)[202](index=202&type=chunk)[203](index=203&type=chunk) - **Economic & Political Risks:** Economic uncertainty, particularly in the Americas, has already led to lower store traffic. Tariffs, trade restrictions, and geopolitical instability pose significant risks to costs and consumer demand[212](index=212&type=chunk)[214](index=214&type=chunk) - **Information Security Risks:** The company faces threats from cyber-attacks and must comply with a complex and evolving landscape of global privacy laws (e.g., GDPR, CCPA, PIPL), with non-compliance carrying risks of fines and reputational damage[187](index=187&type=chunk)[193](index=193&type=chunk) - **ESG Risks:** The company faces increasing pressure and scrutiny regarding climate change and other ESG practices from investors, regulators, and other stakeholders, which could lead to increased costs and reputational risk[244](index=244&type=chunk)[246](index=246&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=65&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2025, the company repurchased 1,363,227 shares of common stock, with approximately $1.14 billion remaining authorized under the repurchase program as of May 4, 2025 Q1 2025 Stock Repurchase Activity | Period (2025) | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Feb 3 - Mar 2 | 280,015 | $383.59 | | Mar 3 - Apr 6 | 858,823 | $308.61 | | Apr 7 - May 4 | 224,389 | $258.30 | | **Total** | **1,363,227** | **N/A** | - As of May 4, 2025, the remaining authorized amount for share repurchases under the current program was approximately **$1.14 billion**[254](index=254&type=chunk) [Item 5. Other Information](index=65&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the first quarter of 2025 - No directors or officers adopted or terminated pre-arranged stock trading plans (Rule 10b5-1 or non-Rule 10b5-1) during the first quarter of 2025[255](index=255&type=chunk) [Item 6. Exhibits](index=66&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and financial statements in iXBRL format - Key exhibits filed include CEO and CFO certifications (**Exhibits 31.1, 31.2, 32.1**) and the interactive data file (iXBRL) for the financial statements (**Exhibit 101**)[257](index=257&type=chunk)

Exhibit 99.1 LULULEMON ATHLETICA INC. ANNOUNCES FIRST QUARTER FISCAL 2025 RESULTS Revenue increased 7% to $2.4 billion, or increased 8% on a constant dollar basis Comparable sales increased 1% Diluted EPS of $2.60 Vancouver, British Columbia – June 5, 2025 – lululemon athletica inc. (NASDAQ:LULU) today announced financial results for the first quarter of fiscal 2025, which ended on May 4, 2025. Calvin McDonald, Chief Executive Officer, stated: "In the first quarter, we achieved growth across channels, categ ...

Financial Performance - Total revenue reached $2.4 billion, a 7% increase[2] - Diluted EPS was $2.60, up by 2%[2] - Total comparable sales increased by 1%[2] Segment Performance - Women's apparel revenue increased by 7%[6] - Men's apparel revenue increased by 8%[6] - Accessories and other revenue increased by 8%[6] - Store revenue increased by 8%[7] - Digital revenue increased by 6%[7] - Americas revenue increased by 3%[8] - International revenue increased by 19%[8] Strategic Initiatives - The company ended Q1 with 770 company-operated stores globally[8]