lululemon athletica inc. stock research
FY2025 Q2
lululemon athletica (LULU) Gross Margin — Quarter Ended Aug 3, 2025
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year. Gross margin improved sequentially but weakened year over year, reflecting changes in the relationship between cost of revenue and revenue.
Gross margin takeaway
Quarter ended Aug 3, 2025 · FY2025 Q2
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year. Gross margin improved sequentially but weakened year over year, reflecting changes in the relationship between cost of revenue and revenue.
- The current quarter's gross profit grew more than cost of revenue relative to the prior quarter, leading to a higher gross margin. Compared to the same quarter last year, cost of revenue grew more relative to revenue, resulting in a lower gross margin.
- Compared to the prior quarter, revenue, gross profit, and cost of revenue were all higher, and gross margin improved. Compared to the same quarter last year, revenue and gross profit were higher, cost of revenue was higher, and gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
58.5%
Gross profit
$1.5B
Revenue
$2.5B
Cost of revenue
$1.0B
Quarter-over-quarter change
+0.2 pts
Year-over-year change
-1.1 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 |
|---|---|---|---|---|
| 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% |
| Aug 3, 2025 | $2.5B | $1.5B | $1.0B | 58.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 4, 2025
+0.2 pts
Year-over-year change
Jul 28, 2024
-1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The current quarter's gross profit grew more than cost of revenue relative to the prior quarter, leading to a higher gross margin. Compared to the same quarter last year, cost of revenue grew more relative to revenue, resulting in a lower gross margin.
Compared to the prior quarter, revenue, gross profit, and cost of revenue were all higher, and gross margin improved. Compared to the same quarter last year, revenue and gross profit were higher, cost of revenue was higher, and gross margin weakened.
Inventory levels, as reported in the balance sheet, are a metric to monitor given their increase from the prior fiscal year-end.