lululemon athletica inc. stock research
FY2025 Q4
lululemon athletica (LULU) Gross Margin — Quarter Ended Feb 1, 2026
Revenue was unchanged compared to the same quarter one year earlier, while gross profit and cost of revenue both moved in opposite directions, resulting in a lower gross margin. Sequentially, revenue increased from the prior quarter, gross profit rose, and cost of revenue also increased, but gross margin weakened slightly.
Gross margin takeaway
Quarter ended Feb 1, 2026 · FY2025 Q4
Revenue was unchanged compared to the same quarter one year earlier, while gross profit and cost of revenue both moved in opposite directions, resulting in a lower gross margin. Sequentially, revenue increased from the prior quarter, gross profit rose, and cost of revenue also increased, but gross margin weakened slightly.
- The strongest observable driver of gross margin was the relationship between cost of revenue and revenue: cost of revenue rose while revenue was flat year over year, compressing margin. Sequentially, cost of revenue increased proportionally more than revenue, leading to a slight margin decline.
- Compared to the immediately preceding quarter, revenue was higher, gross profit was higher, and cost of revenue was higher, but gross margin was lower. Versus the same quarter one year earlier, revenue was stable, gross profit was lower, cost of revenue was higher, and gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
54.9%
Gross profit
$2.0B
Revenue
$3.6B
Cost of revenue
$1.6B
Quarter-over-quarter change
-0.7 pts
Year-over-year change
-5.5 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 |
|---|---|---|---|---|
| May 4, 2025 | $2.4B | $1.4B | $987.5M | 58.3% |
| Aug 3, 2025 | $2.5B | $1.5B | $1.0B | 58.5% |
| Nov 2, 2025 | $2.6B | $1.4B | $1.1B | 55.6% |
| Feb 1, 2026 | $3.6B | $2.0B | $1.6B | 54.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Nov 2, 2025
-0.7 pts
Year-over-year change
Feb 2, 2025
-5.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of gross margin was the relationship between cost of revenue and revenue: cost of revenue rose while revenue was flat year over year, compressing margin. Sequentially, cost of revenue increased proportionally more than revenue, leading to a slight margin decline.
Compared to the immediately preceding quarter, revenue was higher, gross profit was higher, and cost of revenue was higher, but gross margin was lower. Versus the same quarter one year earlier, revenue was stable, gross profit was lower, cost of revenue was higher, and gross margin was lower.
Monitor the trajectory of cost of revenue relative to revenue, as its increase without a corresponding revenue rise has pressured gross margin.