In a recent earnings call, Lululemon CEO Calvin McDonald revealed troubling survey results indicating that shoppers are tightening their wallets amidst inflation and economic uncertainty. While the athleticwear giant exceeded Wall Street’s expectations for fiscal fourth-quarter earnings and revenue, disappointing 2025 forecasts sent shares spiraling more than 10% in after-hours trading. McDonald acknowledged the challenges but noted a positive response to Lululemon’s innovations. As concerns rise about a slowing economy and tariffs, the retailer joins others in predicting sluggish sales ahead.

Lululemon Reports Solid Growth Despite Revenue Miss: Fourth-Quarter Revenue Hits $3.21 Billion with Full-Year Total at $10.59 Billion

In a year marked by challenges, Lululemon showcased robust performance with its fourth-quarter revenue climbing to $3.21 billion, up from $2.91 billion in 2023. Despite a 53-week fiscal year and a projected first-quarter revenue of $2.34 billion to $2.36 billion falling short of Wall Street expectations, the retailer anticipates full-year fiscal 2025 revenue may reach up to $11.30 billion. Notably, net income surged to $748 million, reflecting a strong response to new merchandise strategies, even as comparable sales lagged behind analyst predictions at a growth of 3%. Amid plans for international expansion, Lululemon remains poised for growth in the upcoming fiscal year.