Lululemon Athletica (LULU.O) expects fourth-quarter revenue and profit at the high end of prior guidance following strong holiday sales performance.
The updated outlook signals robust demand for the athletic apparel retailer’s premium yoga and workout gear during the critical holiday shopping season.
Key Takeaways
- Q4 revenue expected near 3.60 billion, top of guidance range
- Earnings forecast close to 4.76 per share
- Strong holiday performance drives upward revision
Market reaction & context
The Vancouver-based company now expects net revenue for the quarter to land toward the high end of its 3.50 billion to 3.585 billion range6. Earnings per share are projected to reach approximately 4.76, also at the upper bound of previous estimates7.
The positive revision comes as retail broadly showed modest holiday growth, with Lululemon’s performance standing out among athletic apparel competitors.
Detailed analysis
Lululemon’s guidance update reflects continued momentum in its core markets despite broader retail headwinds. The company has maintained pricing power for its premium athletic wear while expanding its product offerings beyond traditional yoga apparel.
The timing of the announcement, ahead of fourth-quarter earnings, suggests management confidence in sustaining growth momentum into 2026. However, the company faces ongoing challenges including a proxy fight launched by founder Chip Wilson2.
Outlook & management perspective
In its press release, Lululemon stated: “Following a strong holiday period, we expect to achieve the higher end of our previously communicated fourth quarter net revenue and EPS guidance”3. The company said it remains committed to its long-term growth strategy.
The upward revision indicates Lululemon successfully navigated competitive holiday pricing pressures while maintaining its premium brand positioning.
Conclusion
Lululemon’s raised guidance demonstrates the resilience of its business model and brand strength during a challenging retail environment. The company’s ability to achieve top-end forecasts positions it favorably as it enters 2026.
Investors will watch for detailed fourth-quarter results and full-year 2026 guidance when the company reports earnings in the coming weeks.
Not investment advice. For informational purposes only.
References
1Reuters (2026). “Lululemon expects holiday-quarter revenue, profit to be at top end of prior forecast”. Reuters. Retrieved January 12, 2026.
2“Lululemon expects holiday-quarter revenue, profit to be at top end of prior forecast” (2026). The Globe and Mail. Retrieved January 12, 2026.
3“lululemon athletica inc. Updates Revenue and Earnings” (2026). Lululemon Corporate. Retrieved January 12, 2026.
4Reuters (2026). “Lululemon Expects Holiday-Quarter Revenue, Profit to Be at Top End of Prior Forecast”. U.S. News & World Report. Retrieved January 12, 2026.
5“Lululemon Sees Quarterly Profit at High End After Strong Holiday Sales” (2026). The Wall Street Journal. Retrieved January 12, 2026.
6“Lululemon lifts Q4 revenue and profit outlook ahead of ICR” (2026). Yahoo Finance UK. Retrieved January 12, 2026.
7“Retail’s early holiday 2025 results show modest growth” (2026). CNBC. Retrieved January 12, 2026.
8Reuters (2026). “Lululemon expects holiday-quarter revenue, profit to be at top end of prior forecast”. TradingView. Retrieved January 12, 2026.
9“Lululemon says it expects Q4 sales and EPS to be at high end of guidance” (2026). CityNews Halifax. Retrieved January 12, 2026.