Lululemon Athletica (NASDAQ:LULU) faces a significant leadership transition and divergent performance across its markets.
Third-quarter fiscal 2025 results showed robust international growth, especially in China, contrasted with persistent challenges in the Americas.
The Vancouver-based retailer operates 784 stores globally and is valued at $14.55 billion.
Earnings per share came in at $2.59, beating the $2.22 consensus. The stock trades at $127.18, down 63% from its 52-week high.
CEO Calvin McDonald will step down at the end of January 2026. The company struggles to maintain brand identity in North America.
China revenue grew 25% in the quarter, while the Americas segment declined.
Management expects a turnaround in the Americas by early 2026, but visibility remains limited.
