lululemon athletica inc 10-K for FY2025

lululemon athletica inc. (LULU)

10-K 2025-03-27 For: 2025-02-02

Added on April 07, 2026

About this 10-K

lululemon athletica inc filed this 10-K on March 27, 2025, covering the fiscal year ended February 2, 2025 (FY2025).

Headline figures

Fiscal year ended February 2, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $10.59B; up 10.1% from $9.62B a year earlier
Net income: $1.81B; up 17.1% from net income of $1.55B a year earlier
Diluted EPS: $14.64; up 20.0% from $12.20 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


Delaware						20-3842867
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification Number)


		Page
PART I
Item 1.	Business	1
Item 1A.	Risk Factors	9
Item 1C.	Cybersecurity	22
Item 2.	Properties	23
Item 3.	Legal Proceedings	23
Item 4.	Mine Safety Disclosures	23

PART II
Item 5.	Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	24
Item 6.	Selected Consolidated Financial Data	25
Item 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations	26
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	38
Item 8.	Financial Statements	41
	Index for Notes to the Consolidated Financial Statements	49
Item 9A.	Controls and Procedures	75
Item 9B.	Other Information	76
Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	76

PART III
Item 10.	Directors, Executive Officers and Corporate Governance	77
Item 11.	Executive Compensation	77
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	77
Item 13.	Certain Relationships and Related Transactions, and Director Independence	78
Item 14.	Principal Accountant Fees and Services	78

PART IV
Item 15.	Exhibits and Financial Statement Schedule	79
Item 16.	Form 10-K Summary	81
Signatures		82


	2024			2023
	(In thousands)
Net revenue	$	7,928,156		$	7,631,647

Net revenue growth	3.9		%	11.9		%


	2024			2023
	(In thousands)
Net revenue	$	1,361,337		$	963,760

Net revenue growth	41.3		%	67.2		%


	2024			2023
	(In thousands)
Net revenue	$	1,298,633		$	1,023,871

Net revenue growth	26.8		%	42.9		%


☑			ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


Number of company-operated stores by market	February 2, 2025	January 28, 2024
United States	374	367
Canada	71	71
Mexico	17	—
Americas	462	438

China Mainland	151	127

Australia	33	33
South Korea	20	19
Hong Kong SAR	10	9
Japan	10	8
New Zealand	8	8
Taiwan	8	8
Singapore	7	7
Malaysia	5	3
Thailand	4	1
Macau SAR	2	2
APAC	107	98


Number of retail locations operated by third parties by market	February 2, 2025	January 28, 2024
Mexico	—	15
United Arab Emirates	10	8
Saudi Arabia	8	6
Israel	7	3
Kuwait	4	3
Qatar	4	3
Bahrain	1	1
Total locations operated by third parties under license and supply arrangements	34	39


	02-Feb-20		31-Jan-21		30-Jan-22		29-Jan-23		28-Jan-24		02-Feb-25
lululemon athletica inc.	$	100.00	$	137.30	$	131.96	$	129.85	$	199.69	$	173.02
S&P 500 Index	$	100.00	$	115.15	$	137.40	$	126.20	$	151.63	$	187.27
S&P 500 Apparel, Accessories & Luxury Goods Index	$	100.00	$	95.81	$	92.79	$	65.40	$	52.91	$	56.14


Period(1)	Total Number of Shares Purchased(2)	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(2)	Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs(2)
October 28, 2024 - November 24, 2024	317,785	$	313.18	317,785	$	800,585,948
November 25, 2024 - December 29, 2024	298,348	360.75		298,348	1,692,956,482
December 30, 2024 - February 2, 2025	321,885	388.60		321,885	1,567,870,658
Total	938,018			938,018


	2024			2023			Year over year change
	(In thousands)						(In thousands)		(Percentage)
Gross profit	$	6,270,811		$	5,609,405		$	661,406	11.8	%

Gross margin	59.2		%	58.3		%	90 basis points


	2024 Compared to 2023
	Change		Foreign exchange changes		Change in constant dollars

Net Revenue
Americas	4	%	—	%	4	%
China Mainland	41		2		43
Rest of World	27		2		29
Total net revenue	10	%	1	%	11	%

Comparable sales(1)
Americas	(1)	%	—	%	(1)	%
China Mainland	25		2		27
Rest of World	19		1		20
Total comparable sales	4	%	—	%	4	%


	February 2, 2025
	(In thousands)
Cash and cash equivalents	$	1,984,336
Working capital(1) excluding cash and cash equivalents	156,336
Capacity under committed revolving credit facility	393,935


	Total		2025		2026		2027		2028		2029		Thereafter
	(In thousands)
Operating leases (minimum rent)	$	1,845,624	$	336,521	$	314,027	$	299,214	$	243,199	$	182,854	$	469,809
Purchase obligations	803,579		725,155		22,982		16,807		25,635		13,000		—


	2024		2023		2024		2023
	(In thousands)				(Percentage of net revenue)
Net revenue	$	10,588,126	$	9,619,278	100.0	%	100.0	%
Cost of goods sold	4,317,315		4,009,873		40.8		41.7
Gross profit	6,270,811		5,609,405		59.2		58.3
Selling, general and administrative expenses	3,762,379		3,397,218		35.5		35.3
Impairment of goodwill and other assets, restructuring costs	—		74,501		—		0.8
Amortization of intangible assets	2,735		5,010		—		0.1


Income from operations	2,505,697		2,132,676		23.7		22.2
Other income (expense), net	70,380		43,059		0.7		0.4
Income before income tax expense	2,576,077		2,175,735		24.3		22.6
Income tax expense	761,461		625,545		7.2		6.5
Net income	$	1,814,616	$	1,550,190	17.1	%	16.1	%


	2024			2023			Year over year change
	(In thousands)						(In thousands)		(Percentage)
Net revenue	$	7,928,156		$	7,631,647		$	296,509	3.9	%
Product costs	2,336,251			2,283,490			52,761		2.3
Other cost of sales	641,699			576,810			64,889		11.2
Gross profit	4,950,206			4,771,347			178,859		3.7
Selling, general and administrative expenses	1,934,649			1,834,163			100,486		5.5
Segmented income from operations	$	3,015,557		$	2,937,184		$	78,373	2.7	%

Product margin	70.5		%	70.1		%	40 basis points
Gross margin	62.4		%	62.5		%	(10) basis points
Selling, general and administrative expenses as a % of net revenue	24.4		%	24.0		%	40 basis points
Segmented income from operations as a % of net revenue	38.0		%	38.5		%	(50) basis points


	2024			2023			Year over year change
	(In thousands)						(In thousands)		(Percentage)
Net revenue	$	1,361,337		$	963,760		$	397,577	41.3	%
Product costs	324,237			241,663			82,574		34.2
Other cost of sales	198,373			154,136			44,237		28.7
Gross profit	838,727			567,961			270,766		47.7
Selling, general and administrative expenses	328,868			230,645			98,223		42.6
Segmented income from operations	$	509,859		$	337,316		$	172,543	51.2	%

Product margin	76.2		%	74.9		%	130 basis points
Gross margin	61.6		%	58.9		%	270 basis points
Selling, general and administrative expenses as a % of net revenue	24.2		%	23.9		%	30 basis points
Segmented income from operations as a % of net revenue	37.5		%	35.0		%	250 basis points


	2024			2023			Year over year change
	(In thousands)						(In thousands)		(Percentage)
Net revenue	$	1,298,633		$	1,023,871		$	274,762	26.8	%
Product costs	364,906			316,542			48,364		15.3
Other cost of sales	217,536			171,992			45,544		26.5
Gross profit	716,191			535,337			180,854		33.8
Selling, general and administrative expenses	401,245			333,505			67,740		20.3
Segmented income from operations	$	314,946		$	201,832		$	113,114	56.0	%

Product margin	71.9		%	69.1		%	280 basis points
Gross margin	55.1		%	52.3		%	280 basis points
Selling, general and administrative expenses as a % of net revenue	30.9		%	32.6		%	(170) basis points
Segmented income from operations as a % of net revenue	24.3		%	19.7		%	460 basis points


Report of Independent Registered Public Accounting Firm (PCAOB ID 271)			42
Consolidated Balance Sheets			44
Consolidated Statements of Operations and Comprehensive Income			45
Consolidated Statements of Stockholders' Equity			46
Consolidated Statements of Cash Flows			48
Index for Notes to the Consolidated Financial Statements			49


	February 2, 2025		January 28, 2024
ASSETS
Current assets
Cash and cash equivalents	$	1,984,336	$	2,243,971
Accounts receivable, net	120,173		124,769
Inventories	1,442,081		1,323,602
Prepaid and receivable income taxes	182,253		183,733
Prepaid expenses and other current assets	251,459		184,502
	3,980,302		4,060,577
Property and equipment, net	1,780,617		1,545,811
Right-of-use lease assets	1,416,256		1,265,610
Goodwill	159,518		24,083
Intangible assets, net	11,673		—
Deferred income tax assets	17,085		9,176
Other non-current assets	237,841		186,684
	$	7,603,292	$	7,091,941
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	271,406	$	348,441
Accrued liabilities and other	559,463		348,555
Accrued compensation and related expenses	204,543		326,110
Current lease liabilities	275,154		249,270
Current income taxes payable	183,126		12,098
Unredeemed gift card liability	308,352		306,479
Other current liabilities	37,586		40,308
	1,839,630		1,631,261
Non-current lease liabilities	1,300,637		1,154,012
Non-current income taxes payable	—		15,864
Deferred income tax liabilities	98,188		29,522
Other non-current liabilities	40,790		29,201
	3,279,245		2,859,860
Commitments and contingencies
Stockholders' equity
Undesignated preferred stock, $0.01 par value: 5,000 shares authorized; none issued and outstanding	—		—
Exchangeable stock, no par value: 60,000 shares authorized; 5,116 and 5,116 issued and outstanding	—		—
Special voting stock, $0.000005 par value: 60,000 shares authorized; 5,116 and 5,116 issued and outstanding	—		—
Common stock, $0.005 par value: 400,000 shares authorized; 116,166 and 121,106 issued and outstanding	581		606
Additional paid-in capital	638,190		575,369
Retained earnings	4,109,717		3,920,362
Accumulated other comprehensive loss	(424,441)		(264,256)
	4,324,047		4,232,081
	$	7,603,292	$	7,091,941


	Fiscal Year Ended
	February 2, 2025		January 28, 2024		January 29, 2023
Net revenue	$	10,588,126	$	9,619,278	$	8,110,518
Cost of goods sold	4,317,315		4,009,873		3,618,178
Gross profit	6,270,811		5,609,405		4,492,340
Selling, general and administrative expenses	3,762,379		3,397,218		2,757,447
Impairment of goodwill and other assets, restructuring costs	—		74,501		407,913
Amortization of intangible assets	2,735		5,010		8,752

Gain on disposal of assets	—		—		(10,180)
Income from operations	2,505,697		2,132,676		1,328,408
Other income (expense), net	70,380		43,059		4,163
Income before income tax expense	2,576,077		2,175,735		1,332,571
Income tax expense	761,461		625,545		477,771
Net income	$	1,814,616	$	1,550,190	$	854,800

Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment	$	(253,209)	$	(23,077)	$	(65,571)
Net investment hedge gains (losses)	93,024		11,405		8,904
Other comprehensive income (loss), net of tax	(160,185)		(11,672)		(56,667)
Comprehensive income	$	1,654,431	$	1,538,518	$	798,133

Basic earnings per share	$	14.67	$	12.23	$	6.70
Diluted earnings per share	$	14.64	$	12.20	$	6.68
Basic weighted-average number of shares outstanding	123,735		126,726		127,666
Diluted weighted-average number of shares outstanding	123,935		127,060		128,017


	Exchangeable Stock	Special Voting Stock			Common Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Stockholders' Equity
	Shares	Shares	Par Value		Shares	Par Value
Balance as of January 30, 2022	5,203	5,203	$	—	123,297	$	616	$	422,507	$	2,512,840	$	(195,917)	$	2,740,046
Net income										854,800				854,800
Other comprehensive income (loss), net of tax												(56,667)		(56,667)
Common stock issued upon exchange of exchangeable shares	(87)	(87)	—		87	—		—						—
Stock-based compensation expense								78,075						78,075
Common stock issued upon settlement of stock-based compensation					322	2		11,702						11,704
Shares withheld related to net share settlement of stock-based compensation					(105)	—		(35,158)						(35,158)
Repurchase of common stock, including excise tax					(1,396)	(7)		(2,481)		(441,513)				(444,001)
Balance as of January 29, 2023	5,116	5,116	$	—	122,205	$	611	$	474,645	$	2,926,127	$	(252,584)	$	3,148,799
Net income										1,550,190				1,550,190
Other comprehensive income (loss), net of tax												(11,672)		(11,672)

Stock-based compensation expense								93,560						93,560
Common stock issued upon settlement of stock-based compensation					479	2		42,428						42,430
Shares withheld related to net share settlement of stock-based compensation					(96)	—		(32,574)						(32,574)
Repurchase of common stock, including excise tax					(1,482)	(7)		(2,690)		(555,955)				(558,652)
Balance as of January 28, 2024	5,116	5,116	$	—	121,106	$	606	$	575,369	$	3,920,362	$	(264,256)	$	4,232,081


Note 1	Nature of Operations and Basis of Presentation	50
Note 2	Summary of Significant Accounting Policies	50
Note 3	Inventories	57
Note 4	Prepaid Expenses and Other Current Assets	57
Note 5	Property and Equipment	58
Note 6	Acquisition	58
Note 7	Goodwill	59
Note 8	Intangible Assets	59
Note 9	Impairment of Goodwill and Other Assets, Restructuring Costs	60
Note 10	Other Non-Current Assets	61
Note 11	Accrued Liabilities and Other	62
Note 12	Revolving Credit Facilities	62
Note 13	Supply Chain Financing Program	63
Note 14	Stockholders' Equity	63
Note 15	Stock-Based Compensation and Benefit Plans	63
Note 16	Fair Value Measurement	66
Note 17	Derivative Financial Instruments	66
Note 18	Leases	68
Note 19	Income Taxes	69
Note 20	Earnings Per Share	71
Note 21	Commitments and Contingencies	71
Note 22	Supplemental Cash Flow Information	73
Note 23	Segmented Information	73
Note 24	Disaggregated Net Revenue	75


Furniture and fixtures						20%
Computer hardware and software						20% - 50%
Equipment and vehicles						20% - 30%


	September 10, 2024
	(In thousands)
Fair value of consideration transferred:
Cash paid to shareholders	$	159,380
Contingent consideration	15,000
Settlement of intercompany balances	6,975
	181,355
Less cash acquired	(5,234)
Fair value of consideration transferred, net of cash and cash equivalents acquired	$	176,121
Less fair value of net assets acquired:
Assets acquired:
Inventories	$	15,275
Intangible assets	15,500
Other current and non-current assets	14,013
	44,788
Liabilities assumed	(15,668)
Net assets acquired	$	29,120
Goodwill	$	147,001


	February 2, 2025
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Remaining Useful Life (Years)
	(In thousands, except in years)
Franchise rights	14,325		(2,652)		11,673		1.8
Other	270		(270)		—		n/a
Intangible assets	$	14,595	$	(2,922)	$	11,673	1.8


	2024		2023		2022
	(In thousands)
Costs recorded in cost of goods sold:
lululemon Studio obsolescence provision	$	—	$	23,709	$	62,928

Costs recorded in operating expenses:
Impairment of assets:
Impairment of goodwill	$	—	$	—	$	362,492
Impairment of intangible assets	—		16,951		40,585
Impairment of cloud computing arrangement implementation costs	—		16,074		—
Impairment of property and equipment	—		11,161		4,836
	$	—	$	44,186	$	407,913
Restructuring costs	—		30,315		—
Impairment of goodwill and other assets, restructuring costs	$	—	$	74,501	$	407,913

Total pre-tax charges	$	—	$	98,210	$	470,841

Income tax effects of charges	$	—	$	(26,085)	$	(28,171)
Total after-tax charges	$	—	$	72,125	$	442,670


	Stock Options			Performance-Based Restricted Stock Units			Restricted Shares			Restricted Stock Units
	Number	Weighted-Average Exercise Price		Number	Weighted-Average Grant Date Fair Value		Number	Weighted-Average Grant Date Fair Value		Number	Weighted-Average Grant Date Fair Value
	(In thousands, except per share amounts)
Balance as of January 30, 2022	789	$	186.10	167	$	225.27	4	$	326.70	238	$	265.90
Granted	192	371.04		117	274.90		5	308.66		120	364.51
Exercised/vested	93	127.68		114	170.04		4	326.70		111	241.02
Forfeited/expired	22	286.56		4	307.76		—	—		26	334.39
Balance as of January 29, 2023	866	$	230.78	166	$	295.93	5	$	308.66	221	$	323.89
Granted	213	360.00		121	296.27		4	370.59		132	364.63
Exercised/vested	264	160.45		104	201.56		5	308.66		106	294.65
Forfeited/expired	32	332.26		8	351.14		—	368.36		24	350.38
Balance as of January 28, 2024	783	$	285.69	175	$	349.84	4	$	370.85	223	$	359.12
Granted	232	383.09		125	354.40		5	319.19		146	375.99
Exercised/vested	95	209.54		100	310.86		4	371.33		101	351.61
Forfeited/expired	71	363.58		23	374.15		—	—		29	371.69
Balance as of February 2, 2025	849	$	314.27	177	$	371.83	5	$	317.86	239	$	371.09


	Outstanding					Exercisable
Range of Exercise Prices	Number of Options		Weighted-Average Exercise Price		Weighted-Average Remaining Life (Years)	Number of Options		Weighted-Average Exercise Price		Weighted-Average Remaining Life (Years)
	(In thousands, except per share amounts and years)
$85.96-$188.84	206		$	169.31	1.4	206		$	169.31	1.4
$198.73-$356.93	142		306.87		3.6	85		308.49		3.2
$358.09-$358.09	165		358.09		5.1	39		358.09		5.0
$368.36-$381.86	132		376.52		4.2	60		376.70		4.1
$388.90-$502.74	204		390.46		6.1	4		417.71		3.4
	849		$	314.27	4.1	394		$	251.93	2.6
Intrinsic value	$	84,990				$	64,006


	February 2, 2025		Level 1		Level 2		Level 3		Balance Sheet Classification
	(In thousands)
Money market funds	$	240,918	$	240,918	$	—	$	—	Cash and cash equivalents

Term deposits	8		—		8		—		Cash and cash equivalents
Forward currency contract assets	76,848		—		76,848		—		Prepaid expenses and other current assets
Forward currency contract liabilities	74,638		—		74,638		—		Other current liabilities


	February 2, 2025						January 28, 2024
	Gross Notional		Assets		Liabilities		Gross Notional		Assets		Liabilities
	(In thousands)
Derivatives designated as net investment hedges:
Forward currency contracts	$	1,969,000	$	74,908	$	—	$	1,242,000	$	—	$	258
Derivatives not designated in a hedging relationship:
Forward currency contracts	2,167,657		1,940		74,638		1,543,351		647		2,614
Net derivatives recognized on consolidated balance sheets:
Forward currency contracts			$	76,848	$	74,638			$	647	$	2,872


	February 2, 2025		January 28, 2024
Weighted-average remaining lease term	6.68 years		6.95 years
Weighted-average discount rate	4.3	%	4.0	%


Plan Category	Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights(1) (A)	Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights(2) (B)		Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (A))(3) (C)
Equity compensation plans approved by stockholders	1,265,619	$	314.27	7,754,029
Equity compensation plans not approved by stockholders	—	—		—
Total	1,265,619	$	314.27	7,754,029


			LULULEMON ATHLETICA INC.

			By:						/s/ CALVIN MCDONALD
									Calvin McDonald
									Chief Executive Officer
									(principal executive officer)
			Date:						March 27, 2025


			By:						/s/ MEGHAN FRANK
									Meghan Frank
									Chief Financial Officer
									(principal financial and accounting officer)