lululemon athletica inc. stock research
FY2025 Q1
lululemon athletica (LULU) Gross Margin — Quarter Ended May 4, 2025
Revenue and gross profit both increased compared to the same quarter one year earlier, while cost of revenue also rose. Gross margin improved slightly from the prior year quarter but weakened from the immediately preceding quarter.
Gross margin takeaway
Quarter ended May 4, 2025 · FY2025 Q1
Revenue and gross profit both increased compared to the same quarter one year earlier, while cost of revenue also rose. Gross margin improved slightly from the prior year quarter but weakened from the immediately preceding quarter.
- The strongest observable margin driver is the relationship between revenue and cost of revenue; revenue grew faster than cost of revenue compared to the year-ago quarter, supporting margin expansion. However, compared to the prior quarter, cost of revenue declined less proportionally than revenue, compressing margin.
- Compared to the immediately preceding quarter, gross margin is lower, driven by a larger relative decline in revenue versus cost of revenue. Compared to the same quarter one year earlier, gross margin is higher, as revenue growth outpaced cost of revenue growth.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
58.3%
Gross profit
$1.4B
Revenue
$2.4B
Cost of revenue
$987.5M
Quarter-over-quarter change
-2.1 pts
Year-over-year change
+0.6 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jul 28, 2024 | $2.4B | $1.4B | $958.9M | 59.6% |
| Oct 27, 2024 | $2.4B | $1.4B | $995.1M | 58.5% |
| Feb 2, 2025 | $3.6B | $2.2B | $1.4B | 60.4% |
| May 4, 2025 | $2.4B | $1.4B | $987.5M | 58.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Feb 2, 2025
-2.1 pts
Year-over-year change
Apr 28, 2024
+0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue and cost of revenue; revenue grew faster than cost of revenue compared to the year-ago quarter, supporting margin expansion. However, compared to the prior quarter, cost of revenue declined less proportionally than revenue, compressing margin.
Compared to the immediately preceding quarter, gross margin is lower, driven by a larger relative decline in revenue versus cost of revenue. Compared to the same quarter one year earlier, gross margin is higher, as revenue growth outpaced cost of revenue growth.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters, as the current quarter shows a less favorable cost structure compared to the prior quarter.