Lululemon Athletica Inc. Q3 2025 Earnings Recap

Lululemon reported a mixed performance in Q3 2025, with a 2% revenue decline in the U.S. but a robust 33% increase internationally, primarily driven by unprecedented growth in the China Mainland market.

Key Takeaways

• U.S. total revenue declined 2%, with a 3% drop in the U.S. market and a 1% decline in Canada.
• International revenue surged 33%, led by a 46% increase in China Mainland.
• The company maintains a strong financial position with $1 billion in cash and no debt.
• Leadership transition announced as CEO Calvin McDonald will step down on January 31, 2026, with Meghan Frank and Andre Maestrini appointed as co-CEOs.
• Q4 revenue growth is expected to decline due to calendar shifts affecting sales trends.