Lululemon's net income dropped 21% in Q4 2025 despite a revenue increase, citing competition, margins, and tariffs, with a new board member and product changes announced.

Lululemon reported a 21% drop in net income to $586.9 million for the quarter ending Feb. 1, 2026, with earnings per share falling to $5.01, despite a 1% revenue increase to $3.6 billion. The company, under interim leadership, is overhauling its product line with fewer logos, a simpler color palette, and streamlined accessories to boost full-price sales. International revenue rose 14%, while the Americas saw a 5% decline. Lululemon named Chip Bergh, former Levi Strauss CEO, as a new board member, replacing David Mussafer, as founder Chip Wilson continues a proxy fight over board appointments. The company issued a 2026 sales forecast below analyst estimates, citing ongoing challenges including competition, promotional pressure, and tariffs.