Lululemon Athletica Inc (NASDAQ:LULU) stock rose 11.17% (As on December 12, 11:28:44 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY26. The company posted comparable sales growth of 1%, or 2% on a constant dollar basis, with international markets driving performance while North American sales declined. International net revenue surged 33% with particularly strong results in China Mainland, where comparable sales increased 24%. Americas net revenue decreased 2% in the quarter, with comparable sales in the region falling 5%, highlighting the company’s ongoing challenges in its home market. The company opened 12 net new stores during the quarter, ending with 796 locations globally. Inventory increased 11% year-over-year to $2.0 billion, or 4% on a unit basis. With a healthy current ratio of 2.27, lululemon’s liquid assets comfortably exceed its short-term obligations, providing financial flexibility for continued expansion.
LULU in the third quarter of FY26 has reported the adjusted earnings per share of $2.59, beating the analysts’ estimates for the adjusted earnings per share of $2.22, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 7 percent to $2.57 billion in the third quarter of FY26, missing the analysts’ estimates for revenue of $2.48 billion.
Additionally, the company repurchased 1.0 million shares for $189.0 million during the quarter, and its board approved a $1.0 billion increase to its stock repurchase program.
For fiscal 2025, lululemon now expects net revenue between $10.962 billion and $11.047 billion, representing 4% growth, or 5% to 6% excluding the 53rd week of 2024. This aligns with InvestingPro data showing a 4% revenue growth forecast for the fiscal year, while analysts project earnings per share of $13.00. For the current quarter ending in January, Lululemon said it expects revenue in the range of $3.5 billion to $3.59 billion. The company expects full-year earnings to be $12.92 to $13.02 per share.
On the other hand, lululemon athletica inc. has announced that CEO Calvin McDonald will step down from his role and board membership effective January 31, 2026. The company is actively searching for his successor, and Board Chair Marti Morfitt has been appointed Executive Chair to guide the transition. Additionally, Celeste Burgoyne, President of the Americas, will leave the company at the end of December 2025 to join Vail Resorts as Chief Revenue Officer. As a result, lululemon has named Maestrini as the new president.