Lululemon Q3: revenue +7.1% to $2.57B, net income -12.8% to $306.8M on tariff hit

Filed December 11, 2025 · Period ending November 2, 2025 · Compared to 10-Q Dec 5, 2024 · ~2 min read

Key Changes

• high

  Tariffs and de minimis removal drove $60M operating-income reduction YTD, $210M estimated full-year impact net of mitigation (vendor negotiations, selective price increases). Gross margin compressed 290 bps to 55.6%, operating margin fell 350 bps to 17.0%.

  MD&A: Tariff Impact verify on EDGAR →
• high

  CEO Calvin McDonald steps down January 31, 2026; CFO Meghan Frank and President Andre Maestrini appointed interim co-CEOs during permanent-successor search. Filing warns of potential uncertainty, management distraction, operational disruption, and negative stakeholder perception.

  Controls & Subsequent Events verify on EDGAR →
• high

  Americas net revenue -2%, comp sales -5% in Q3 2025 (vs. +2% revenue, -2% comp in Q3 2024), driven by lower average order value, conversion, and traffic amid economic uncertainty and reduced consumer confidence. Segmented operating income fell $137.5M (-21%) to $517.5M.

  MD&A: Americas Performance verify on EDGAR →