Analysis of Reportable Segments
lululemon athletica inc. operates in 3 segments: Americas; China Mainland; and Rest of World.
Segment Profit Margin
lululemon athletica inc., profit margin by reportable segment
| Feb 1, 2026 | Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|---|
| Americas | 32.63% | 38.04% | 38.49% | 36.73% | 35.23% | — |
| China Mainland | 39.95% | 37.45% | 35.00% | 34.15% | 38.53% | — |
| Rest of World | 23.05% | 24.25% | 19.71% | 14.40% | 12.95% | — |
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).
Segment profit margins demonstrate varied performance across the reported geographic regions over the observed period. The Americas segment exhibited a generally increasing trend from 2022 through 2024, followed by a notable decline in the most recent two years. China Mainland experienced fluctuations, with an initial decrease from 2022 to 2023, followed by improvement through 2025, and a further increase in 2026. The Rest of World segment showed consistent growth in profit margin throughout the entire period, although the rate of increase slowed in the final two years.
- Americas Segment
- The Americas segment’s profit margin increased from 35.23% in 2022 to 38.49% in 2024, indicating improving profitability within this region. However, margins decreased to 38.04% in 2025 and further to 32.63% in 2026. This recent decline warrants further investigation to determine the underlying causes, such as increased competition, changing consumer preferences, or rising operational costs.
- China Mainland Segment
- The China Mainland segment’s profit margin began at 38.53% in 2022, decreased to 34.15% in 2023, and then recovered to 35.00% in 2024. Continued positive momentum led to 37.45% in 2025 and peaked at 39.95% in 2026. This suggests successful adaptation to the local market and potentially effective cost management strategies within the region.
- Rest of World Segment
- The Rest of World segment demonstrated the most consistent upward trend in profit margin, increasing from 12.95% in 2022 to 24.25% in 2025. While still positive, the rate of growth slowed in 2026, with the margin settling at 23.05%. This sustained improvement suggests successful expansion and increasing operational efficiency in these markets, although the deceleration in 2026 should be monitored.
Overall, the segment performance indicates a shifting landscape. While the Americas segment, historically strong, experienced a recent downturn, China Mainland and the Rest of World demonstrated positive trends. Continued monitoring of these segments is crucial for understanding the company’s overall financial health and identifying areas for strategic focus.
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Segment Profit Margin: Americas
lululemon athletica inc.; Americas; segment profit margin calculation
| Feb 1, 2026 | Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Income from operations | 2,560,658) | 3,015,557) | 2,937,184) | 2,503,740) | 1,867,016) | —) |
| Net revenue | 7,847,044) | 7,928,156) | 7,631,647) | 6,817,454) | 5,299,906) | —) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 32.63% | 38.04% | 38.49% | 36.73% | 35.23% | — |
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).
1 2026 Calculation
Segment profit margin = 100 × Income from operations ÷ Net revenue
= 100 × 2,560,658 ÷ 7,847,044 = 32.63%
The Americas segment demonstrated a generally positive trajectory in profitability between 2022 and 2024, followed by a notable decline in the most recent two reported periods. Income from operations and net revenue both increased consistently from 2022 through 2024, contributing to improvements in the segment profit margin. However, while income from operations continued to grow in 2025, the rate of revenue growth slowed, and a decrease is observed in 2026.
- Segment Profit Margin Trend
- The segment profit margin exhibited an upward trend from 35.23% in 2022 to 38.49% in 2023, indicating increasing profitability relative to revenue. This positive momentum continued into 2024, reaching 38.04%. However, 2025 saw a slight decrease to 38.04%, and a more substantial decline to 32.63% was recorded in 2026. This recent decrease suggests potential pressures on profitability within the Americas segment.
- Revenue and Income from Operations Relationship
- From 2022 to 2024, both net revenue and income from operations increased concurrently. Net revenue grew from US$5,299,906 thousand to US$7,631,647 thousand, while income from operations increased from US$1,867,016 thousand to US$2,937,184 thousand. This suggests efficient scaling of operations during this period. In 2025, net revenue continued to increase, reaching US$7,928,156 thousand, and income from operations also increased to US$3,015,557 thousand. However, in 2026, net revenue decreased to US$7,847,044 thousand, while income from operations decreased significantly to US$2,560,658 thousand, indicating a potential shift in cost structure or pricing dynamics.
The decline in segment profit margin in 2026, despite continued positive income from operations, warrants further investigation. The slower revenue growth coupled with the decrease in income from operations suggests that the Americas segment may be facing increased competition, rising costs, or changing consumer preferences. The substantial drop in the profit margin indicates that these factors are significantly impacting the segment’s overall profitability.
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Segment Profit Margin: China Mainland
lululemon athletica inc.; China Mainland; segment profit margin calculation
| Feb 1, 2026 | Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Income from operations | 701,123) | 509,859) | 337,316) | 196,865) | 167,318) | —) |
| Net revenue | 1,754,799) | 1,361,337) | 963,760) | 576,503) | 434,261) | —) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 39.95% | 37.45% | 35.00% | 34.15% | 38.53% | — |
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).
1 2026 Calculation
Segment profit margin = 100 × Income from operations ÷ Net revenue
= 100 × 701,123 ÷ 1,754,799 = 39.95%
The segment profit margin for China Mainland demonstrates a clear upward trend over the observed period. Initially, income from operations and net revenue figures are unavailable for the year ending January 31, 2021. However, from 2022 through the projected year of 2026, both metrics exhibit substantial growth, contributing to the observed margin improvement.
- Segment Profit Margin Trend
- The segment profit margin began at 38.53% in 2022. A slight decrease to 34.15% was recorded in 2023. Subsequently, the margin recovered to 35.00% in 2024 and continued to increase, reaching 37.45% in 2025 and a projected 39.95% in 2026. This indicates improving profitability within the China Mainland segment.
- Revenue and Income from Operations Growth
- Net revenue increased significantly from US$434.261 million in 2022 to a projected US$1.754799 billion in 2026. Income from operations mirrored this growth, rising from US$167.318 million in 2022 to a projected US$701.123 million in 2026. The consistent growth in both revenue and operating income supports the increasing segment profit margin.
The initial dip in segment profit margin in 2023, despite revenue and income from operations increases, suggests potential short-term cost pressures or investment activity within the segment. However, the subsequent recovery and continued improvement through the projected years indicate effective management of these factors and a strengthening operational performance in China Mainland.
- Overall Performance
- The consistent growth in income from operations, coupled with the increasing segment profit margin, suggests that the China Mainland segment is becoming a more profitable contributor to the overall business. The projected figures for 2026 indicate a continued positive trajectory for this segment.
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Segment Profit Margin: Rest of World
lululemon athletica inc.; Rest of World; segment profit margin calculation
| Feb 1, 2026 | Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Income from operations | 345,901) | 314,946) | 201,832) | 103,204) | 67,674) | —) |
| Net revenue | 1,500,757) | 1,298,633) | 1,023,871) | 716,561) | 522,450) | —) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 23.05% | 24.25% | 19.71% | 14.40% | 12.95% | — |
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).
1 2026 Calculation
Segment profit margin = 100 × Income from operations ÷ Net revenue
= 100 × 345,901 ÷ 1,500,757 = 23.05%
The Rest of World segment demonstrates a strong positive trajectory in both income from operations and net revenue between 2022 and 2026. This growth is accompanied by a consistent increase in segment profit margin, although a slight deceleration in margin expansion is noted towards the end of the analyzed period.
- Income from Operations
- Income from operations for the Rest of World segment increased significantly from US$67.674 million in 2022 to US$345.901 million in 2026. The largest absolute increase occurred between 2023 and 2024, with an addition of US$98.628 million. Growth slowed between 2024 and 2026, adding US$31.045 million.
- Net Revenue
- Net revenue for the Rest of World segment exhibited substantial growth, rising from US$522.450 million in 2022 to US$1.500.757 million in 2026. Similar to income from operations, the most substantial year-over-year increase in net revenue was observed between 2023 and 2024, with an increase of US$500.000 million. The increase from 2025 to 2026 was US$202.124 million.
- Segment Profit Margin
- The segment profit margin for the Rest of World segment increased steadily from 12.95% in 2022 to 24.25% in 2025. This represents a significant improvement in profitability. However, the rate of increase slowed in 2026, with the margin decreasing slightly to 23.05%. While still representing a healthy profit margin, this suggests potential challenges in maintaining the same pace of margin expansion observed in prior years.
Overall, the Rest of World segment is performing strongly, demonstrating robust growth in both revenue and profitability. The slight decrease in segment profit margin in 2026 warrants further investigation to determine the underlying factors and potential implications for future performance.
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Net revenue
lululemon athletica inc., net revenue by reportable segment
US$ in thousands
| Feb 1, 2026 | Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|---|
| Americas | 7,847,044) | 7,928,156) | 7,631,647) | 6,817,454) | 5,299,906) | —) |
| China Mainland | 1,754,799) | 1,361,337) | 963,760) | 576,503) | 434,261) | —) |
| Rest of World | 1,500,757) | 1,298,633) | 1,023,871) | 716,561) | 522,450) | —) |
| Total segments | 11,102,600) | 10,588,126) | 9,619,278) | 8,110,518) | 6,256,617) | —) |
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).
Net revenue demonstrates consistent growth across all reportable segments between 2022 and 2026. The Americas segment represents the largest contributor to overall revenue, while China Mainland and Rest of World exhibit more rapid percentage growth from a smaller base.
- Americas Segment
- Revenue from the Americas segment increased from US$5,299,906 thousand in 2022 to US$7,631,647 thousand in 2023, representing a substantial year-over-year increase. Growth continued to US$7,928,156 thousand in 2024, but slowed in 2025 and 2026, reaching US$7,847,044 thousand. While still the largest segment, the Americas segment experienced a slight decline in revenue between 2024 and 2026.
- China Mainland Segment
- The China Mainland segment experienced the most significant proportional growth. Revenue increased from US$434,261 thousand in 2022 to US$576,503 thousand in 2023, then more than doubled to US$963,760 thousand in 2024. This growth trajectory continued with revenue reaching US$1,361,337 thousand in 2025 and US$1,754,799 thousand in 2026. This indicates a rapidly expanding market presence.
- Rest of World Segment
- The Rest of World segment also demonstrated consistent growth, albeit at a more moderate pace than China Mainland. Revenue increased from US$522,450 thousand in 2022 to US$716,561 thousand in 2023, and continued to rise to US$1,023,871 thousand in 2024. Further growth was observed in 2025 (US$1,298,633 thousand) and 2026 (US$1,500,757 thousand). This segment consistently contributes a significant portion to overall revenue.
- Total Segment Revenue
- Total segment revenue increased steadily from US$6,256,617 thousand in 2022 to US$8,110,518 thousand in 2023, US$9,619,278 thousand in 2024, US$10,588,126 thousand in 2025, and finally to US$11,102,600 thousand in 2026. The overall trend is positive, although the rate of growth appears to be moderating in the later periods, influenced by the performance of the Americas segment.
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Income from operations
lululemon athletica inc., income from operations by reportable segment
US$ in thousands
| Feb 1, 2026 | Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|---|
| Americas | 2,560,658) | 3,015,557) | 2,937,184) | 2,503,740) | 1,867,016) | —) |
| China Mainland | 701,123) | 509,859) | 337,316) | 196,865) | 167,318) | —) |
| Rest of World | 345,901) | 314,946) | 201,832) | 103,204) | 67,674) | —) |
| Total segments | 3,607,682) | 3,840,362) | 3,476,332) | 2,803,809) | 2,102,008) | —) |
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 reported income from operations demonstrates significant growth across all segments between 2022 and 2024, followed by a mixed performance in the projected years of 2025 and 2026. The Americas segment consistently contributes the largest portion of overall income from operations.
- Americas Segment
- Income from operations in the Americas segment increased from US$1,867,016 thousand in 2022 to US$2,937,184 thousand in 2024, representing a substantial growth rate. This growth slowed in 2025, reaching US$3,015,557 thousand, and then experienced a decrease in 2026 to US$2,560,658 thousand. The 2026 figure represents the only decline observed within this segment across the analyzed period.
- China Mainland Segment
- The China Mainland segment exhibited the most rapid percentage growth throughout the period. Starting from US$167,318 thousand in 2022, income from operations increased to US$337,316 thousand in 2024. This upward trend continued into the projection period, reaching US$509,859 thousand in 2025 and further increasing to US$701,123 thousand in 2026. This segment consistently demonstrates accelerating growth.
- Rest of World Segment
- Income from operations in the Rest of World segment also showed consistent growth, albeit at a more moderate pace than the China Mainland segment. Increasing from US$67,674 thousand in 2022 to US$201,832 thousand in 2024, the segment continued to grow, reaching US$314,946 thousand in 2025 and US$345,901 thousand in 2026. The rate of increase appears to be stabilizing in the later projection years.
- Total Segment Income
- Total income from operations across all segments increased from US$2,102,008 thousand in 2022 to US$3,476,332 thousand in 2024. Growth slowed in 2025, with total income reaching US$3,840,362 thousand, and then decreased to US$3,607,682 thousand in 2026. The 2026 total represents a slight decline from the 2025 level, driven primarily by the decrease in the Americas segment.
Overall, the period between 2022 and 2024 was characterized by strong growth in income from operations across all segments. The projected period of 2025 and 2026 indicates a potential shift in this trend, with slowing growth and a decline in the Americas segment impacting overall total income from operations.
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