Short answer
Lululemon Athletica (LULU) filed its fiscal 2026 10-K annual report with the SEC on Mar 17, 2026. It reported revenue of $11.1B (+4.9% year over year) and net income of $1.6B.
- Top risk flagged: Taiwan fabric concentration: ~34% of fabric sourced from Taiwan; military conflict or trade disruption could critically impair materials supply
FY2026 key financial metrics · XBRL
- Revenue
- $11.1B
- +4.9% YoY
- Net income
- $1.6B
- −13.0% YoY
- Operating margin
- 19.9%
- −3.8 pp YoY
- Gross margin
- 56.6%
- −2.6 pp YoY
- EPS (diluted)
- $13.26
- −9.4% YoY
- ROE
- 31.8%
- −10.1 pp YoY
- Operating cash flow
- $1.6B
- −29.5% YoY
Source: XBRL data from the Lululemon Athletica (LULU) FY2026 10-K on SEC EDGAR. USD.
Lululemon Athletica FY2026 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Designer/retailer of technical athletic apparel via vertical retail omni-channel model across 30 countries, ~700+ company-operated stores
- China Mainland standout: revenue +28.9% YoY to $1.75B, now 16% of total; most new store openings planned there in 2026
- Americas revenue declined 1.0% YoY to $7.85B; sales per sq ft fell to $1,426 from $1,574: notable deterioration in core market
- Launched "Impact Agenda 2030" with $75M invested in community wellbeing equity; ~39,000 employees as of Feb 2026
- Acquired Mexico licensed stores outright (Sept 2024), internalizing previously third-party-operated lululemon locations
Management Discussion & Analysis
- Revenue $11.1B, up 5% YoY ($514M increase); international +22%, Americas -1%; China Mainland +29%
- Operating margin 19.9% vs 23.7%; gross margin 56.6% vs 59.2%; tariffs/de minimis removal cost ~$275M gross profit
- Best segment: China Mainland, segmented operating margin 40.0% vs 37.5%, revenue +29%; Worst: Americas, segmented operating margin 32.6% vs 38.0%, revenue -1%
- Operating cash flow $1.6B vs $2.3B; capex guidance $725M–$745M for 2026; repurchased 5.0M shares for $1.2B; $1.0B buyback authorization added Dec 2025
- Mgmt expects continued gross margin and operating margin decline in 2026 from tariffs; $216M remitted under IEEPA with uncertain refund recovery
Risk Factors
- Taiwan fabric concentration: ~34% of fabric sourced from Taiwan; military conflict or trade disruption could critically impair materials supply
- CEO vacancy since Jan 31, 2026; interim co-CEOs installed during permanent search, creating leadership uncertainty and stakeholder concern
- U.S. tariff escalation post-April 2025 and de minimis exemption eliminated May 2, 2025; majority of U.S. e-commerce orders fulfilled from Canadian distribution centers, now subject to new duties
- CRA withdrew from bilateral APA negotiations Oct 2025; transfer pricing now exposed to audit risk, potentially altering profit allocation and effective tax rate
- "Dupe" product proliferation via social media eroding brand premium; limited patents on fabrics and manufacturing processes leave lululemon with minimal IP protection
Generated from the filing text; verify against the original. How to read a 10-K
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