Canada’s Lululemon Athletica (LULU) posted strong fiscal third-quarter financial results and announced that its current CEO will depart the company in January 2026.
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Vancouver-based Lululemon announced earnings per share (EPS) of $2.59, which beat the consensus forecast on Wall Street of $2.21. Revenue for the three months ended on Nov. 2 totaled $2.57 billion, which topped the $2.48 billion expected among analysts.
Along with the better-than-expected results, Lululemon said that Calvin McDonald will step down as both CEO and a board member on Jan. 31, 2026. He will serve as a senior advisor through March 31 of next year. The company plans to search for a new CEO and board chair Marti Morfitt will assume an expanded role of executive chair, effective immediately.
Lululemon’s income statement. Source: The Fly
Lululemon’s Forward Guidance
In terms of guidance, Lululemon said that it expects fiscal fourth-quarter earnings per share of $4.66 to $4.76 on revenue of $3.50 billion to $3.59 billion. That was below Wall Street’s consensus forecast of $4.94 of earnings and revenue of $3.57 billion.
The athletic apparel retailer now expects full-year fiscal 2025 earnings of $12.92 to $13.02 on revenue of $10.96 billion to $11.05 billion. The full-year outlook is ahead of $12.85 in earnings and revenue of $10.96 billion expected on Wall Street. Additionally, Lululemon Athletica’s board of directors approved a $1 billion increase to the company’s existing share repurchase program.
Is LULU Stock a Buy?
The stock of Lululemon Athletica has a consensus Hold rating among 17 Wall Street analysts. That rating is based on one Buy, 15 Hold, and one Sell recommendations issued in the last three months. The average LULU price target of $185.21 implies 1.67% upside from current levels.