Lululemon Revenue And Store Count-growth Or Bubble?
Lululemon revenue and store count-growth or bubble?
Lululemon is still growing, but the growth profile has clearly shifted from a fast-expanding North American story to a more international, store-driven one, and that is why the "bubble" question is now fair to ask. In fiscal 2025, the company reported about $11.1 billion in net revenue, up 5% year over year, while its company-operated store count rose to 811 from 767 a year earlier, showing continued expansion even as growth in the Americas softened.
Revenue snapshot
Revenue growth is still positive, but it is no longer broad-based in the same way it was a few years ago. Lululemon said total net revenue increased 5% for fiscal 2025 to $11.1 billion, and its fourth quarter revenue was $3.6 billion, flat versus the prior year on an absolute basis because 2024 included a 53rd week.
The more important detail is where the growth came from: China Mainland net revenue rose 24% in Q4, and Rest of World increased 10%, while Americas net revenue fell 4% in the quarter. That split matters because it suggests the company is leaning harder on international demand to offset a slower U.S. and Canada backdrop.
Store count trend
Store count continues to rise, and that gives lululemon a physical retail tailwind even when same-store momentum cools. The company ended fiscal 2025 with 811 company-operated stores, up from 767 at the end of fiscal 2024, and it opened 15 net new company-operated stores in the fourth quarter alone.
That is not a massive footprint relative to global apparel giants, but the pace still signals an active expansion plan. Earlier reporting said lululemon planned to open 40 to 45 stores in 2025, with most new openings outside the Americas, especially in China.
| Metric | Fiscal 2024 | Fiscal 2025 | Change |
|---|---|---|---|
| Net revenue | $10.6 billion | $11.1 billion | +5% |
| Q4 revenue | $3.6 billion | $3.6 billion | Flat |
| Company-operated stores | 767 | 811 | +44 stores |
| Americas revenue | Not disclosed here | -1% for FY25 | Decline |
| International revenue | Base year | +22% for FY25 | Strong growth |
Growth or bubble
Growth signal and bubble risk are both present in the data, which is why the stock can feel contradictory to investors. The growth case is supported by double-digit international expansion, higher store count, and management's 2026 revenue outlook of $11.35 billion to $11.5 billion, which implies another year of modest top-line growth.
The bubble argument comes from slowing momentum in the core U.S. market, margin pressure, and a valuation that can become hard to justify if growth keeps decelerating. Lululemon's gross margin fell to 54.9% in Q4 2025 from 60.4% a year earlier, and operating income declined as tariffs, markdowns, and other costs weighed on profitability.
Why investors care
Investor focus has shifted from "how fast can lululemon grow?" to "how durable is the growth engine?" That question is sharper now because the brand's U.S. business, which has historically been its most important profit pool, is losing some momentum while international markets are carrying more of the load.
Management has tried to keep the story centered on product innovation and retail expansion, with CEO Calvin McDonald saying stores remain "an important part of our growth story" and describing them as community hubs that support local engagement and productivity. That language reinforces that lululemon still sees stores as a growth platform, not a mature-endgame footprint.
What the numbers suggest
Company trajectory looks more like a maturing growth brand than a classic bubble, because revenue is still rising and the store base is still expanding. But it also looks less explosive than it did during the brand's earlier U.S.-led run, and that means future gains may depend more on international execution, product refreshes, and margin discipline.
- Revenue is growing, but at a slower pace than peak expansion years.
- Store count is increasing, with 811 company-operated stores at fiscal 2025 year-end.
- International markets are doing the heavy lifting, especially China Mainland and Rest of World.
- Margins are under pressure from tariffs, markdowns, and higher occupancy costs.
- Forward guidance remains positive, but not especially aggressive versus market expectations.
Timeline of expansion
Expansion timeline helps explain why this debate has intensified. In 2024, lululemon surpassed $10 billion in annual revenue for the first time and ended the year with 767 stores, according to its annual report and earnings materials.
By March 2026, the company had reported fiscal 2025 revenue of about $11.1 billion and 811 stores, meaning it added 44 net new company-operated stores in a single year while continuing to scale internationally. That is healthy expansion, but the market is now asking whether each new store still produces the same lift in sales productivity that lululemon enjoyed in its earlier growth phase.
- Fiscal 2024: revenue passed $10 billion for the first time and the store base reached 767.
- Fiscal 2025: revenue rose to about $11.1 billion and stores increased to 811.
- Fiscal 2026 outlook: management guided to $11.35 billion to $11.5 billion in revenue.
Regional split
Regional mix is the clearest evidence that lululemon is becoming more internationally balanced. In Q4 2025, the Americas generated $2.7 billion, or 74% of total revenue, down from 77% a year earlier, while China Mainland and Rest of World both expanded their share.
That shift is positive because it reduces dependence on a single market, but it also raises execution risk because new regions usually require heavier investment, more localization, and tighter inventory control. Lululemon's inventory was up 18% to $1.7 billion at the end of Q4 2025, which suggests the company is still stocking ahead for growth, not shrinking into safety mode.
Bubble indicators
Bubble risk would be easier to argue if revenue were flat and store openings were clearly losing productivity, but that is not the full picture here. Instead, the red flags are more subtle: slower U.S. demand, weaker gross margin, and a valuation that may already assume a lot of future success.
Put simply, lululemon does not look broken, but it does look like a premium brand entering a more demanding phase of growth. If management can keep international growth strong while stabilizing the Americas and protecting margins, the story remains constructive; if not, the "bubble" narrative will keep resurfacing.
Analyst takeaway: lululemon is still expanding in revenue and stores, but the business is transitioning from fast-growth to quality-growth, and that makes the next few quarters more important than the last few years.
Key concerns and solutions for Lululemon Revenue And Store Count
What is lululemon's revenue now?
Lululemon reported about $11.1 billion in net revenue for fiscal 2025, up 5% year over year, with Q4 revenue at $3.6 billion.
How many stores does lululemon have?
At the end of fiscal 2025, lululemon had 811 company-operated stores worldwide, up from 767 a year earlier.
Is lululemon still growing?
Yes, but the growth is more international than domestic, and the company's U.S. business has been softer than its overseas business.
Is lululemon overexpanded?
Not by the numbers alone, because revenue is still rising and store openings remain deliberate, but margin pressure and U.S. slowing mean expansion now carries more execution risk.