Income Statement
The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.
lululemon athletica inc., consolidated income statement
US$ in thousands
Based on: 10-K (reporting date: 2026-02-01), 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31).
The income statement reveals a consistent pattern of growth in net revenue over the observed period, from US$4.4 billion in 2021 to US$11.1 billion in 2026. While revenue increased steadily, profitability exhibited more nuanced trends. Cost of goods sold also increased consistently, but at a rate generally lower than revenue growth, resulting in expanding gross profit margins initially, followed by a stabilization and slight contraction in later years.
- Revenue Growth
- Net revenue demonstrated robust growth throughout the period, with a particularly significant increase between 2021 and 2022 (approximately 44%). Growth rates moderated in subsequent years, but remained positive, averaging around 15-20% annually between 2022 and 2025, before slowing to approximately 8% between 2025 and 2026.
- Gross Profit and Margins
- Gross profit increased from US$2.46 billion in 2021 to US$6.28 billion in 2026. The gross profit margin expanded from 55.8% in 2021 to 68.3% in 2023, then stabilized around 65-66% in 2024 and 2025, before decreasing slightly to 56.6% in 2026. This suggests increasing efficiency in production or sourcing initially, followed by potential pressures on pricing or increased input costs in the later periods.
- Operating Expenses
- Selling, general, and administrative expenses increased consistently alongside revenue, rising from US$1.61 billion in 2021 to US$4.07 billion in 2026. This indicates a continued investment in sales, marketing, and administrative functions to support growth. The ratio of these expenses to net revenue remained relatively stable, fluctuating between 36% and 42% throughout the period.
- Non-Recurring Items
- The company experienced an impairment of assets and restructuring costs of US$407.9 million in 2023 and US$74.5 million in 2024. Acquisition-related expenses were present in 2021 and 2022, but ceased in subsequent years. A gain on disposal of assets was recorded in 2023. These items impacted income from operations in the respective years.
- Net Income and Profitability
- Net income increased significantly from US$588.9 million in 2021 to US$1.81 billion in 2025, before decreasing to US$1.58 billion in 2026. The net income margin peaked in 2025 at 17.1%, and decreased to 14.3% in 2026. This decline in net income in 2026, despite continued revenue growth, suggests potential pressures from increased costs, higher tax expenses, or the impact of the slight contraction in gross margin.
- Other Income and Taxes
- Other income (expense), net, increased substantially over the period, moving from a small expense in 2021 to a significant income source by 2025. Income tax expense increased in line with pre-tax income, with the effective tax rate remaining relatively consistent around 25-30% throughout the period.
In summary, the company demonstrated strong revenue growth, but experienced fluctuations in profitability due to factors such as non-recurring items and potential cost pressures. While gross margins initially expanded, they stabilized and slightly contracted in the later years, contributing to a decrease in net income margin in 2026.
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