lululemon athletica inc.

Current report (Form 8-K) · Jun 4, 2026 · Financial results · Financial statements

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Jun 4, 2026

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EX-99.1

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lulu-20260503xex991.htm

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EX-99.1 · lulu-20260503xex991.htm EX-99.1 2 lulu-20260503xex991.htm EARNINGS RELEASE Exhibit 99.1 LULULEMON ATHLETICA INC. ANNOUNCES FIRST QUARTER FISCAL 2026 RESULTS Revenue increased 4% to $2.5 billion, or increased 2% on a constant dollar basis Comparable sales increased 1%, or decreased 2% on a constant dollar basis Diluted EPS of $1.69 Vancouver, British Columbia – June 4, 2026 – lululemon athletica inc. (NASDAQ:LULU) today announced financial results for the first quarter of fiscal 2026, which ended on May 3, 2026. Meghan Frank, Interim Co-CEO and Chief Financial Officer, stated: "We experienced a solid start to 2026 as our teams executed with speed, agility, and discipline. Our work to drive improvements in North America resulted in some positive signals in the quarter, including a sequential improvement in full-price sales. More recently, we have been navigating headwinds that have led us to adjust our outlook for the full year. We have assessed the business and are taking additional actions to reposition where needed and further strengthen our product engine. We remain confident in our path forward." André Maestrini, Interim Co-CEO, President, and Chief Commercial Officer, stated: "During the quarter, we continued to grow our lululemon community as we entered new markets and elevated our product, brand, and guest experiences around the world. This work included delivering successful product capsules and activations across train, tennis, and run, as well as implementing enhancements across our store fleet and digital channels that we will build upon in the months ahead. We recognize that we have more work to do, and our teams remain focused on our priorities as we continue our efforts to reignite growth and realize lululemon's full potential." For the first quarter of 2026, compared to the first quarter of 2025: • Net revenue increased 4% to $2.5 billion, or increased 2% on a constant dollar basis. – Americas net revenue decreased 3%, or 4% on a constant dollar basis. – International net revenue increased 22%, or 16% on a constant dollar basis. • Comparable sales increased 1%, or decreased 2% on a constant dollar basis. – Americas comparable sales decreased 5%, or 6% on a constant dollar basis. – International comparable sales increased 13%, or 8% on a constant dollar basis. • Gross profit decreased 3% to $1.3 billion and gross margin decreased 410 basis points to 54.2%. • Income from operations decreased 37% to $276.9 million and operating margin decreased 730 basis points to 11.2%. • The effective income tax rate for the first quarter of 2026 was 31.8% compared to 30.2% for the first quarter of 2025. • Diluted earnings per share were $1.69 compared to $2.60 in the first quarter of 2025. • The Company repurchased 2.2 million of its shares for a cost of $358.3 million. • The Company opened five net new company-operated stores during the first quarter, ending with 816 stores. Balance Sheet Highlights The Company ended the first quarter of 2026 with $1.5 billion in cash and cash equivalents and it had $593.6 million of available capacity under its committed revolving credit facility. Inventories at the end of the first quarter of 2026 increased by 2% to $1.7 billion compared to the end of the first quarter of 2025. On a unit basis, inventories decreased 4%. 1 2026 Outlook For the second quarter of 2026, the Company expects net revenue to be in the range of $2.450 billion to $2.475 billion, representing a decline of 3% to 2%. Diluted earnings per share are expected to be in the range of $1.76 to $1.81 for the quarter. This assumes a tax rate of approximately 30%. For 2026, the Company now expects net revenue to be in the range of $11.000 billion to $11.150 billion, representing a decline of 1% to 0%. Diluted earnings per share are now expected to be in the range of $10.95 to $11.15 for the year. This assumes a tax rate of approximately 30%. The guidance does not reflect any potential IEEPA tariff refunds or future repurchases of the Company's shares. The guidance and outlook forward-looking statements made in this press release are based on management's expectations as of the date of this press release and do not incorporate future unknown impacts, including tariffs and macroeconomic trends. The Company undertakes no duty to update or to continue to provide information with respect to any forward-looking statements or risk factors, whether as a result of new information or future events or circumstances or otherwise. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of risks and uncertainties, including those stated below. Conference Call Information A conference call to discuss first quarter results is scheduled for today, June 4, 2026, at 4:30 p.m. Eastern time. Those interested in participating in the call are invited to dial 1-833-752-3550 or 1-647-846-8290, if calling internationally, approximately 10 minutes prior to the start of the call. A live webcast of the conference call will be available online at: https://corporate.lululemon.com/investors/news-and-events/events-and-presentations. A replay will be made available online approximately two hours following the live call for a period of 30 days. About lululemon athletica inc. lululemon athletica inc. (NASDAQ:LULU) is a technical athletic apparel, footwear, and accessories company for yoga, running, training, and most other activities, creating transformational products and experiences that build meaningful connections, unlocking greater possibility and wellbeing for all. Setting the bar in innovation of fabrics and functional designs, lululemon works with yogis and athletes in local communities around the world for continuous research and product feedback. For more information, visit lululemon.com. Non-GAAP Financial Measures We report certain financial metrics on a constant dollar basis, which is a non-GAAP financial measure. A constant dollar basis assumes the average foreign currency exchange rates for the period remained constant with the average foreign currency exchange rates for the same period of the prior year. The Company provides constant dollar changes in its results to help investors understand the underlying performance of net revenue excluding the impact of changes in foreign currency exchange rates. Management uses constant currency metrics internally when reviewing and assessing financial performance. These non-GAAP financial measures are provided in addition to, and not a substitute for, the corresponding financial measures calculated in accordance with GAAP. For more information on these non-GAAP financial measures, please see the section captioned "Reconciliation of Non-GAAP Financial Measures" included in the accompanying financial tables, which includes more detail on the GAAP financial measure that is most directly comparable to each non-GAAP financial measure, and the related reconciliations between these financial measures. The Company's non-GAAP financial measures may be 2 calculated differently from, and therefore may not be directly comparable to, similarly titled measures reported by other companies. Forward-Looking Statements: This press release includes estimates, projections, statements relating to the Company's business plans, objectives, and expected operating results that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. In many cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "outlook," "believes," "intends," "estimates," "predicts," "potential" or the negative of these terms or other comparable terminology. These forward-looking statements also include the Company's guidance and outlook statements. These statements are based on management's current expectations but they involve a number of risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in the forward-looking statements as a result of risks and uncertainties, which include, without limitation: the Company's ability to maintain its brand value and reputation; its highly competitive market and increasing competition; its ability to anticipate consumer preferences and successfully develop and introduce new, innovative and differentiated products; the acceptability of its products to guests; increasing costs and decreasing selling prices; its ability to accurately forecast guest demand for its products; its ability to expand in light of its limited operating experience and limited brand recognition in new international markets and new product categories; its ability to attract, manage, and retain highly qualified individuals; its ability to manage its growth and the increased complexity of its business effectively; changes in consumer shopping preferences and shifts in distribution channels; its leasing of retail and distribution space; seasonality; changes to U.S. tariff and customs policy, including the elimination of the de minimis exemption; macroeconomic volatility, inflationary pressures, and shifts in consumer sentiment; global political and economic instability, including geopolitical conflicts and political polarization; trade restrictions, tariffs, and customs changes; its ability to comply with trade and other regulations; changes in tax laws, transfer pricing, or unanticipated tax liabilities; fluctuations in foreign currency exchange rates; global or regional public health crises; disruptions of its supply chain; its reliance on a relatively small number of vendors to supply and manufacture a significant portion of its products; suppliers or manufacturers not complying with its Vendor Code of Ethics or applicable laws; fluctuating costs of raw materials and the cost of producing its products; its ability to deliver its products to the market and to meet guest expectations if it has problems with its distribution system; its ability to safeguard against security breaches with respect to its technology systems; its compliance with privacy and data protection laws; any material disruption of its technology systems; its ability to have technology-based systems for its e-commerce business function effectively; imitation by its competitors; its ability to protect its intellectual property rights; conflicting trademarks and patents and the prevention of sale of certain products; actions by stockholders, activists, or consumers; its exposure to various types of litigation; climate change and related pressures; heightened scrutiny and legal risks from competing pressures regarding ESG; and other risks and uncertainties set out in filings made from time to time with the United States Securities and Exchange Commission and available at www.sec.gov, including, without limitation, its most recent reports on Form 10-K and Form 10-Q. You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements. The forward-looking statements made herein speak only as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances, except as may be required by law. 3 Contacts: Investor Contacts: lululemon athletica inc. Howard Tubin 1-604-732-6124 or ICR, Inc. Joseph Teklits 1-203-682-8200 Media Contact: lululemon athletica inc. Madi Wallace 1-604-732-6124 4 lululemon athletica inc. The fiscal year ending January 31, 2027 is referred to as "2026" and the fiscal year ended February 1, 2026 is referred to as "2025". Condensed Consolidated Statements of Operations Unaudited; Expressed in thousands, except per share amounts First Quarter 2026 2025 Net revenue $ 2,471,603 $ 2,370,660 Costs of goods sold 1,132,785 987,534 Gross profit 1,338,818 1,383,126 As a percentage of net revenue 54.2% 58.3% Selling, general and administrative expenses 1,059,988 942,871 As a percentage of net revenue 42.9% 39.8% Amortization of intangible assets 1,884 1,630 Income from operations 276,946 438,625 As a percentage of net revenue 11.2% 18.5% Other income (expense), net 9,131 11,786 Income before income tax expense 286,077 450,411 Income tax expense 91,029 135,839 Net income $ 195,048 $ 314,572 Basic earnings per share $ 1.69 $ 2.61 Diluted earnings per share $ 1.69 $ 2.60 Basic weighted-average shares outstanding 115,414 120,632 Diluted weighted-average shares outstanding 115,482 120,843 5 lululemon athletica inc. Condensed Consolidated Balance Sheets Unaudited; Expressed in thousands May 3, 2026 February 1, 2026 May 4, 2025 ASSETS Current assets Cash and cash equivalents $ 1,514,729 $ 1,807,202 $ 1,325,272 Inventories 1,687,088 1,700,753 1,652,091 Prepaid and receivable income taxes 422,167 352,469 230,280 Other current assets 370,591 402,277 374,874 Total current assets 3,994,575 4,262,701 3,582,517 Property and equipment, net 2,045,719 2,033,720 1,846,609 Right-of-use lease assets 1,948,704 1,630,181 1,549,401 Goodwill and intangible assets, net 189,357 191,194 178,001 Deferred income taxes and other non-current assets 353,086 338,947 274,015 Total assets $ 8,531,441 $ 8,456,743 $ 7,430,543 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 294,323 $ 331,421 $ 303,975 Accrued liabilities and other 586,317 662,982 506,996 Accrued compensation and related expenses 172,395 187,887 144,222 Current lease liabilities 357,204 298,724 281,837 Current income taxes payable 50,130 43,948 31,276 Unredeemed gift card liability 296,361 316,632 271,076 Other current liabilities 37,586 45,954 33,003 Total current liabilities 1,794,316 1,887,548 1,572,385 Non-current lease liabilities 1,778,804 1,499,717 1,424,945 Deferred income tax liability 75,251 52,278 98,189 Other non-current liabilities 57,469 55,360 45,454 Stockholders' equity 4,825,601 4,961,840 4,289,570 Total liabilities and stockholders' equity $ 8,531,441 $ 8,456,743 $ 7,430,543 6 lululemon athletica inc. Condensed Consolidated Statements of Cash Flows Unaudited; Expressed in thousands First Quarter 2026 2025 Cash flows from operating activities Net income $ 195,048 $ 314,572 Adjustments to reconcile net income to net cash provided by operating activities 19,392 (433,526) Net cash provided by (used in) operating activities 214,440 (118,954) Net cash used in investing activities (138,850) (106,842) Net cash used in financing activities (378,525) (467,974) Effect of foreign currency exchange rate changes on cash and cash equivalents 10,462 34,706 Decrease in cash and cash equivalents (292,473) (659,064) Cash and cash equivalents, beginning of period 1,807,202 1,984,336 Cash and cash equivalents, end of period $ 1,514,729 $ 1,325,272 7 lululemon athletica inc. Reconciliation of Non-GAAP Financial Measures Unaudited Constant dollar changes The below changes show the change compared to the corresponding period in the prior year. First Quarter 2026 Net Revenue Change Foreign exchange Change in constant dollars United States (4) % — % (4) % Canada (3) (3) (6) Americas (3) (1) (4) China Mainland 30 (7) 23 Rest of World 13 (4) 9 Total international 22 (6) 16 Total 4 % (2) % 2 % First Quarter 2026 Comparable Sales (1) Change Foreign exchange Change in constant dollars Americas (5) % (1) % (6) % China Mainland 20 (7) 13 Rest of World 5 (4) 1 Total international 13 (5) 8 Total 1 % (3) % (2) % __________ (1) Comparable sales includes comparable company-operated store and e-commerce net revenue. Comparable company-operated stores have been open for at least 12 full fiscal months, or open for at least 12 full fiscal months after being significantly expanded. Comparable company-operated stores exclude stores which have been temporarily relocated for renovations or have been temporarily closed. 8 lululemon athletica inc. Company-operated Store Count and Square Footage (1) Square footage expressed in thousands Number of Stores Open at the Beginning of the Quarter Number of Stores Opened During the Quarter Number of Stores Closed During the Quarter Number of Stores Open at the End of the Quarter 2 nd Quarter 2025 770 15 1 784 3 rd Quarter 2025 784 14 2 796 4 th Quarter 2025 796 18 3 811 1 st Quarter 2026 811 11 6 816 Total Gross Square Feet at the Beginning of the Quarter Gross Square Feet Added During the Quarter (2) Gross Square Feet Lost During the Quarter (2) Total Gross Square Feet at the End of the Quarter 2 nd Quarter 2025 3,415 99 3 3,511 3 rd Quarter 2025 3,511 128 9 3,630 4 th Quarter 2025 3,630 116 10 3,736 1 st Quarter 2026 3,736 66 14 3,788 __________ (1) Company-operated store count and square footage summary excludes retail locations operated by third parties under license and supply arrangements. (2) Gross square feet added/lost during the quarter includes net square foot additions for company-operated stores which have been renovated or relocated in the quarter. 9

Document text

EX-99.1 · lulu-20260503xex991.htm

EX-99.1
 2
 lulu-20260503xex991.htm
 EARNINGS RELEASE

 Exhibit 99.1

 LULULEMON ATHLETICA INC. ANNOUNCES FIRST QUARTER FISCAL 2026 RESULTS

 Revenue increased 4% to $2.5 billion, or increased 2% on a constant dollar basis
 Comparable sales increased 1%, or decreased 2% on a constant dollar basis
 Diluted EPS of $1.69
 Vancouver, British Columbia – June 4, 2026 – lululemon athletica inc. (NASDAQ:LULU) today announced financial results for the first quarter of fiscal 2026, which ended on May 3, 2026.
 Meghan Frank, Interim Co-CEO and Chief Financial Officer, stated: "We experienced a solid start to 2026 as our teams executed with speed, agility, and discipline. Our work to drive improvements in North America resulted in some positive signals in the quarter, including a sequential improvement in full-price sales. More recently, we have been navigating headwinds that have led us to adjust our outlook for the full year. We have assessed the business and are taking additional actions to reposition where needed and further strengthen our product engine. We remain confident in our path forward."
 André Maestrini, Interim Co-CEO, President, and Chief Commercial Officer, stated: "During the quarter, we continued to grow our lululemon community as we entered new markets and elevated our product, brand, and guest experiences around the world. This work included delivering successful product capsules and activations across train, tennis, and run, as well as implementing enhancements across our store fleet and digital channels that we will build upon in the months ahead. We recognize that we have more work to do, and our teams remain focused on our priorities as we continue our efforts to reignite growth and realize lululemon's full potential."
 For the first quarter of 2026, compared to the first quarter of 2025:
 • Net revenue increased 4% to $2.5 billion, or increased 2% on a constant dollar basis.
 – Americas net revenue decreased 3%, or 4% on a constant dollar basis.
 – International net revenue increased 22%, or 16% on a constant dollar basis.
 • Comparable sales increased 1%, or decreased 2% on a constant dollar basis.
 – Americas comparable sales decreased 5%, or 6% on a constant dollar basis.
 – International comparable sales increased 13%, or 8% on a constant dollar basis.
 • Gross profit decreased 3% to $1.3 billion and gross margin decreased 410 basis points to 54.2%.
 • Income from operations decreased 37% to $276.9 million and operating margin decreased 730 basis points to 11.2%.
 • The effective income tax rate for the first quarter of 2026 was 31.8% compared to 30.2% for the first quarter of 2025.
 • Diluted earnings per share were $1.69 compared to $2.60 in the first quarter of 2025.
 • The Company repurchased 2.2 million of its shares for a cost of $358.3 million.
 • The Company opened five net new company-operated stores during the first quarter, ending with 816 stores.
 Balance Sheet Highlights
 The Company ended the first quarter of 2026 with $1.5 billion in cash and cash equivalents and it had $593.6 million of available capacity under its committed revolving credit facility.
 Inventories at the end of the first quarter of 2026 increased by 2% to $1.7 billion compared to the end of the first quarter of 2025. On a unit basis, inventories decreased 4%.
 1

 2026 Outlook
 For the second quarter of 2026, the Company expects net revenue to be in the range of $2.450 billion to $2.475 billion, representing a decline of 3% to 2%. Diluted earnings per share are expected to be in the range of $1.76 to $1.81 for the quarter. This assumes a tax rate of approximately 30%.
 For 2026, the Company now expects net revenue to be in the range of $11.000 billion to $11.150 billion, representing a decline of 1% to 0%. Diluted earnings per share are now expected to be in the range of $10.95 to $11.15 for the year. This assumes a tax rate of approximately 30%.
 The guidance does not reflect any potential IEEPA tariff refunds or future repurchases of the Company's shares.
 The guidance and outlook forward-looking statements made in this press release are based on management's expectations as of the date of this press release and do not incorporate future unknown impacts, including tariffs and macroeconomic trends. The Company undertakes no duty to update or to continue to provide information with respect to any forward-looking statements or risk factors, whether as a result of new information or future events or circumstances or otherwise. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of risks and uncertainties, including those stated below.

 Conference Call Information
 A conference call to discuss first quarter results is scheduled for today, June 4, 2026, at 4:30 p.m. Eastern time. Those interested in participating in the call are invited to dial 1-833-752-3550 or 1-647-846-8290, if calling internationally, approximately 10 minutes prior to the start of the call. A live webcast of the conference call will be available online at: https://corporate.lululemon.com/investors/news-and-events/events-and-presentations. A replay will be made available online approximately two hours following the live call for a period of 30 days.
 About lululemon athletica inc.
 lululemon athletica inc. (NASDAQ:LULU) is a technical athletic apparel, footwear, and accessories company for yoga, running, training, and most other activities, creating transformational products and experiences that build meaningful connections, unlocking greater possibility and wellbeing for all. Setting the bar in innovation of fabrics and functional designs, lululemon works with yogis and athletes in local communities around the world for continuous research and product feedback. For more information, visit lululemon.com.
 Non-GAAP Financial Measures
 We report certain financial metrics on a constant dollar basis, which is a non-GAAP financial measure.
 A constant dollar basis assumes the average foreign currency exchange rates for the period remained constant with the average foreign currency exchange rates for the same period of the prior year. The Company provides constant dollar changes in its results to help investors understand the underlying performance of net revenue excluding the impact of changes in foreign currency exchange rates. Management uses constant currency metrics internally when reviewing and assessing financial performance.
 These non-GAAP financial measures are provided in addition to, and not a substitute for, the corresponding financial measures calculated in accordance with GAAP. For more information on these non-GAAP financial measures, please see the section captioned "Reconciliation of Non-GAAP Financial Measures" included in the accompanying financial tables, which includes more detail on the GAAP financial measure that is most directly comparable to each non-GAAP financial measure, and the related reconciliations between these financial measures. The Company's non-GAAP financial measures may be
 2

 calculated differently from, and therefore may not be directly comparable to, similarly titled measures reported by other companies.
 Forward-Looking Statements:
 This press release includes estimates, projections, statements relating to the Company's business plans, objectives, and expected operating results that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. In many cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "outlook," "believes," "intends," "estimates," "predicts," "potential" or the negative of these terms or other comparable terminology. These forward-looking statements also include the Company's guidance and outlook statements. These statements are based on management's current expectations but they involve a number of risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in the forward-looking statements as a result of risks and uncertainties, which include, without limitation: the Company's ability to maintain its brand value and reputation; its highly competitive market and increasing competition; its ability to anticipate consumer preferences and successfully develop and introduce new, innovative and differentiated products; the acceptability of its products to guests; increasing costs and decreasing selling prices; its ability to accurately forecast guest demand for its products; its ability to expand in light of its limited operating experience and limited brand recognition in new international markets and new product categories; its ability to attract, manage, and retain highly qualified individuals; its ability to manage its growth and the increased complexity of its business effectively; changes in consumer shopping preferences and shifts in distribution channels; its leasing of retail and distribution space; seasonality; changes to U.S. tariff and customs policy, including the elimination of the de minimis exemption; macroeconomic volatility, inflationary pressures, and shifts in consumer sentiment; global political and economic instability, including geopolitical conflicts and political polarization; trade restrictions, tariffs, and customs changes; its ability to comply with trade and other regulations; changes in tax laws, transfer pricing, or unanticipated tax liabilities; fluctuations in foreign currency exchange rates; global or regional public health crises; disruptions of its supply chain; its reliance on a relatively small number of vendors to supply and manufacture a significant portion of its products; suppliers or manufacturers not complying with its Vendor Code of Ethics or applicable laws; fluctuating costs of raw materials and the cost of producing its products; its ability to deliver its products to the market and to meet guest expectations if it has problems with its distribution system; its ability to safeguard against security breaches with respect to its technology systems; its compliance with privacy and data protection laws; any material disruption of its technology systems; its ability to have technology-based systems for its e-commerce business function effectively; imitation by its competitors; its ability to protect its intellectual property rights; conflicting trademarks and patents and the prevention of sale of certain products; actions by stockholders, activists, or consumers; its exposure to various types of litigation; climate change and related pressures; heightened scrutiny and legal risks from competing pressures regarding ESG; and other risks and uncertainties set out in filings made from time to time with the United States Securities and Exchange Commission and available at www.sec.gov, including, without limitation, its most recent reports on Form 10-K and Form 10-Q. You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements. The forward-looking statements made herein speak only as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances, except as may be required by law.
 3

 Contacts:
 Investor Contacts:
 lululemon athletica inc.
 Howard Tubin
 1-604-732-6124
 or
 ICR, Inc.
 Joseph Teklits
 1-203-682-8200

 Media Contact:
 lululemon athletica inc.
 Madi Wallace
 1-604-732-6124
 4

 lululemon athletica inc.
 The fiscal year ending January 31, 2027 is referred to as "2026" and the fiscal year ended February 1, 2026 is referred to as "2025".
 Condensed Consolidated Statements of Operations
 Unaudited; Expressed in thousands, except per share amounts  

 First Quarter

 2026 2025
 Net revenue $ 2,471,603  $ 2,370,660 
 Costs of goods sold 1,132,785  987,534 
 Gross profit 1,338,818  1,383,126 
 As a percentage of net revenue 54.2% 58.3%
 Selling, general and administrative expenses 1,059,988  942,871 
 As a percentage of net revenue 42.9% 39.8%
 Amortization of intangible assets 1,884  1,630 

 Income from operations 276,946  438,625 
 As a percentage of net revenue 11.2% 18.5%
 Other income (expense), net 9,131  11,786 
 Income before income tax expense 286,077  450,411 
 Income tax expense 91,029  135,839 
 Net income $ 195,048  $ 314,572 

 Basic earnings per share $ 1.69  $ 2.61 
 Diluted earnings per share $ 1.69  $ 2.60 
 Basic weighted-average shares outstanding 115,414  120,632 
 Diluted weighted-average shares outstanding 115,482  120,843 

 5

 lululemon athletica inc.
 Condensed Consolidated Balance Sheets
 Unaudited; Expressed in thousands  

 May 3,
2026 February 1,
2026 May 4,
2025
 ASSETS
 Current assets
 Cash and cash equivalents $ 1,514,729  $ 1,807,202  $ 1,325,272 
 Inventories 1,687,088  1,700,753  1,652,091 
 Prepaid and receivable income taxes 422,167  352,469  230,280 
 Other current assets 370,591  402,277  374,874 
 Total current assets 3,994,575  4,262,701  3,582,517 
 Property and equipment, net 2,045,719  2,033,720  1,846,609 
 Right-of-use lease assets 1,948,704  1,630,181  1,549,401 
 Goodwill and intangible assets, net 189,357  191,194  178,001 
 Deferred income taxes and other non-current assets 353,086  338,947  274,015 
 Total assets $ 8,531,441  $ 8,456,743  $ 7,430,543 
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities
 Accounts payable $ 294,323  $ 331,421  $ 303,975 
 Accrued liabilities and other 586,317  662,982  506,996 
 Accrued compensation and related expenses 172,395  187,887  144,222 
 Current lease liabilities 357,204  298,724  281,837 
 Current income taxes payable 50,130  43,948  31,276 
 Unredeemed gift card liability 296,361  316,632  271,076 
 Other current liabilities 37,586  45,954  33,003 
 Total current liabilities 1,794,316  1,887,548  1,572,385 
 Non-current lease liabilities 1,778,804  1,499,717  1,424,945 

 Deferred income tax liability 75,251  52,278  98,189 
 Other non-current liabilities 57,469  55,360  45,454 
 Stockholders' equity 4,825,601  4,961,840  4,289,570 
 Total liabilities and stockholders' equity $ 8,531,441  $ 8,456,743  $ 7,430,543 

 6

 lululemon athletica inc.
 Condensed Consolidated Statements of Cash Flows
 Unaudited; Expressed in thousands  

 First Quarter

 2026 2025
 Cash flows from operating activities
 Net income $ 195,048  $ 314,572 
 Adjustments to reconcile net income to net cash provided by operating activities 19,392  (433,526)
 Net cash provided by (used in) operating activities 214,440  (118,954)
 Net cash used in investing activities (138,850) (106,842)
 Net cash used in financing activities (378,525) (467,974)
 Effect of foreign currency exchange rate changes on cash and cash equivalents 10,462  34,706 
 Decrease in cash and cash equivalents (292,473) (659,064)
 Cash and cash equivalents, beginning of period 1,807,202  1,984,336 
 Cash and cash equivalents, end of period $ 1,514,729  $ 1,325,272 

 7

 lululemon athletica inc.
 Reconciliation of Non-GAAP Financial Measures
 Unaudited

 Constant dollar changes
 The below changes show the change compared to the corresponding period in the prior year.

 First Quarter 2026

 Net Revenue Change Foreign exchange Change in constant dollars
 United States (4) % —  % (4) %
 Canada (3) (3) (6)

 Americas (3) (1) (4)

 China Mainland 30  (7) 23 
 Rest of World 13  (4) 9 
 Total international 22  (6) 16 

 Total 4  % (2) % 2  %

 First Quarter 2026

 Comparable Sales (1)
 Change Foreign exchange Change in constant dollars
 Americas (5) % (1) % (6) %

 China Mainland 20  (7) 13 
 Rest of World 5  (4) 1 
 Total international 13  (5) 8 

 Total 1  % (3) % (2) %

 __________
 (1) Comparable sales includes comparable company-operated store and e-commerce net revenue. Comparable company-operated stores have been open for at least 12 full fiscal months, or open for at least 12 full fiscal months after being significantly expanded. Comparable company-operated stores exclude stores which have been temporarily relocated for renovations or have been temporarily closed.

 8

 lululemon athletica inc.
 Company-operated Store Count and Square Footage (1)
 Square footage expressed in thousands

 Number of Stores Open at the Beginning of the Quarter Number of Stores Opened During the Quarter Number of Stores Closed During the Quarter Number of Stores Open at the End of the Quarter
 2 nd Quarter 2025
 770  15  1  784 
 3 rd Quarter 2025
 784  14  2  796 
 4 th Quarter 2025
 796  18  3  811 
 1 st Quarter 2026
 811  11  6  816 

   Total Gross Square Feet at the Beginning of the Quarter Gross Square Feet Added During the Quarter (2)
 Gross Square Feet Lost During the Quarter (2)
 Total Gross Square Feet at the End of the Quarter
 2 nd Quarter 2025
 3,415  99  3  3,511 
 3 rd Quarter 2025
 3,511  128  9  3,630 
 4 th Quarter 2025
 3,630  116  10  3,736 
 1 st Quarter 2026
 3,736  66  14  3,788 

   __________
 (1) Company-operated store count and square footage summary excludes retail locations operated by third parties under license and supply arrangements.
 (2) Gross square feet added/lost during the quarter includes net square foot additions for company-operated stores which have been renovated or relocated in the quarter.

 9

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