Lululemon Athletica — Sep 4, 2025 release

Inventories at the end of the second quarter of 2025 increased 21% to $1.7 billion compared to $1.4 billion at the end of the second quarter of 2024. On a unit basis, inventories increased 13%. 1 2025 Outlook For the third quarter of 2025, the Company expects net revenue to be in the range of $2.470 billion to $2.500 billion, representing growth of 3% to 4%. Diluted earnings per share are expected to be in the range of $2.18 to $2.23 for the quarter. This assumes a tax rate of approximately 30.5%. For 2025, the Company now expects net revenue to be in the range of $10.850 billion to $11.000 billion, representing growth of 2% to 4%, or 4% to 6% excluding the 53rd week of 2024. Diluted earnings per share are now expected to be in the range of $12.77 to $12.97 for the year. This assumes a tax rate of approximately 30%. The guidance for 2025 includes an estimated reduction in gross profit of approximately $240 million, net of currently anticipated mitigation efforts, including vendor savings, and pricing actions, reflecting our current assumptions about higher levels of tariffs on imports into the United States and the removal of the de minimis exemption. Actual results could differ materially from these estimates if tariff rates, sourcing savings, consumer demand, or the timing of regulatory changes vary from our current assumptions, or if our mitigation initiatives are less effective than currently expected. The guidance does not reflect potential future repurchases of the Company's shares. The guidance