Lululemon Athletica Inc. is signalling it had a good Christmas, despite facing a proxy battle.
The athleticwear retailer announced Monday that it expects its net revenue and diluted earnings per share for its fourth quarter to come in at the high end of its guidance.
Lululemon’s chief financial officer Meghan Frank said the update is based on the company’s performance over the holiday season.
The fourth quarter began in early November and includes some of the busiest shopping periods — Black Friday, the week before Christmas and Boxing Day.
The Vancouver-based retailer had previously forecast revenue in a range of US$3.5 billion to US$3.56 billion and diluted earnings per share between US$4.66 and US$4.76 for the fourth quarter.
The company made no changes to its outlook for gross margin, selling, general and administrative expenses, or the effective tax rate.
The announcement comes as Lululemon is facing intense criticism just as it prepares to shake up its management.
On Dec. 11, CEO Calvin McDonald announced he will step down from his role at the end of January. McDonald took the helm in 2018 and was responsible for the company expanding further into menswear and signing several sports league partnerships.
However, the brand has also faced several challenges during his time in leadership. Competitors like Alo and Vuori have proven to be fierce rivals and Lululemon has struggled to bring its customers enough newness — a measure of how fresh consumers see the brand’s colourways, styles and materials.
Lululemon founder Chip Wilson, who left the company’s board in 2015, has regularly attacked management for poor decision making.
He recently went one step further, nominating three candidates for Lululemon’s board and saying the search for McDonald’s replacement should be led by new, independent directors.
Meanwhile, activist investor Elliott Management, which has built a stake of more than US$1 billion in Lululemon, is pushing for the struggling retailer to name former Ralph Lauren executive Jane Nielsen as its next chief executive.
Lululemon has said it will evaluate Wilson’s suggestions but has also maintained it has a highly engaged and experienced board that is focused on finding a candidate with experience leading companies through periods of transformation.
“The Lululemon board of directors will continue to take actions that we believe are in the best interests of all the company’s shareholders,” the retailer said in a Dec. 29 press release.
This report by The Canadian Press was first published Jan. 12, 2026.
