Lululemon: Slowdown, New Drops

Lululemon reported fourth-quarter net revenue of $3.6 billion and diluted EPS of $5.01 for the quarter ended Feb. 1, 2026, with full-year revenue of $11.1 billion. (corporate.lululemon.com) Americas net revenue fell about 4% while International net revenue rose roughly 17%, and comparable sales rose 3% overall (6% revenue growth excluding the extra 53rd week in 2024). (corporate.lululemon.com) The company set fiscal‑2026 revenue guidance of $11.35 billion to $11.50 billion (2%–4% growth) and EPS guidance of $12.10–$12.30, and flagged a roughly 120‑basis‑point drag to gross margin and about a 250‑basis‑point operating‑margin decline. (ainvest.com) Quarter‑end inventory stood at about $1.7 billion, up ~18% in dollars and ~6% in units, and management says it expects mid‑to‑high single‑digit dollar inventory growth in 2026 with units flat to slightly down. (aol.com) Executives outlined a plan to raise new‑product penetration to roughly 35% in 2026 to accelerate fresh assortments and reduce markdowns, while the company repurchased 1.4 million shares for $269.1 million and finished the quarter with 811 stores after 15 net openings. (corporate.lululemon.com) Separately, the retailer refreshed its “We Made Too Much” overstock page in March with dozens of spring items and active‑lounge styles, with editor picks and markdowns that include the BeCalm Oversized Mid‑Rise Pant at about 30% off and sale items starting under $10. (forbes.com) Industry deal roundups note Lululemon restocks that sale section frequently (commonly on Thursdays) to clear inventory ahead of new product drops, and editors warn popular sizes and colors sell out quickly. (forbes.com)