Lululemon Athletica (LULU) FY2026 10-K Annual Report
Filed: Mar 17, 2026
Consumer Discretionary
Apparel & Other Finishd Prods of Fabrics & Similar MatlSEC EDGAR Lululemon Athletica (LULU) 10-K annual report for fiscal year 2026, filed with SEC EDGAR on Mar 17, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
Lululemon Athletica FY2026 10-K Analysis
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
Lululemon Athletica FY2026 Key Financial MetricsXBRL
Revenue
$11.1B
▲ +4.9% YoY
Net Income
$1.6B
▼ -13.0% YoY
Gross Margin
56.6%
▼ -262bp YoY
Operating Margin
19.9%
▼ -375bp YoY
Net Margin
14.2%
▼ -291bp YoY
ROE
31.8%
▼ -1014bp YoY
Total Assets
$8.5B
▲ +11.2% YoY
EPS (Diluted)
$13.26
▼ -9.4% YoY
Operating Cash Flow
$1.6B
▼ -29.5% YoY
Source: XBRL data from Lululemon Athletica FY2026 10-K filing on SEC EDGAR. All figures in USD.
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