This story originally appeared in our sister publication, Retail TouchPoints.
Lululemon Athletica beat Wall Street expectations for its fourth quarter, driven primarily by international sales, a trend that prevailed throughout its FY 2025, which ended Feb. 1, 2026. While international sales were up in both Q4 and during the full year, net revenue and comparable sales in the Americas declined in both periods, reflecting the uphill battle Lululemon is fighting in its home market as it also navigates a high-profile proxy battle with its founder Chip Wilson, tariff impacts and the hunt for a new CEO.
For several months, Wilson has been waging war with the company he created, decrying a “third failed succession planning process” following the departure of longtime leader Calvin McDonald and asserting that a new CEO should not be appointed until the company’s board has undergone “significant change to be sure shareholders can trust the right decision is made.”
Chip Bergh Appointment Unlikely to Stymy Chip Wilson
Lululemon has appointed a new board member, although not one of the three executives Wilson has been actively lobbying for. Alongside its Q4 and full-year earnings, the company announced the appointment of former Levi Strauss & Co. President and CEO Chip Bergh, effective immediately. Bergh retired from Levi Strauss in early 2024 after 13 years at the company. Prior to that he spent 28 years at Procter & Gamble, and he also currently serves on the boards of HP, E.l.f. Beauty and Pinterest.
“Chip Bergh is an industry leader with a proven record of guiding successful transformations, overseeing the growth of some of the world’s most iconic brands, and driving value creation at global, category-defining companies,” said Marti Morfitt, Executive Chair of the Lululemon board in a statement. “We are confident the board will benefit from his extensive brand and retail expertise as we continue to build on Lululemon’s strong foundation and deliver innovative products and experiences for guests.”
While Wilson will be hard-pressed to claim that Bergh isn’t a good appointment — with Bergh having led a significant turnaround at Levi Strauss including growth in sales, renewed cultural relevance, and a successful IPO — the news is unlikely to completely stifle his outspoken criticism of the current board’s overall makeup.
After claiming the current Lululemon board’s response to his suggestions has been “weak and insufficient,” Wilson has gone so far as to create a website dedicated to his three nominees — which include Marc Maurer, former Co-CEO of On Holding; Laura Gentile, former Chief Marketing Officer of ESPN; and Eric Hirshberg, former CEO of Activision Publishing, the largest segment of Activision Blizzard.
In his latest salvo, Wilson issued an open letter directed at Lululemon CEO candidates: “I believe that the Lululemon brand is capable of leading our industry once again, yet any leader considering the CEO position should be laser-focused on the company’s board,” Wilson warned in his letter. “After three CEO departures without a successor ready to take the helm, one must consider if the company’s board is simply not equipped to support visionary leadership, no matter how qualified an individual may be. Until meaningful change in the boardroom has taken place, success for the new CEO could be a perpetual struggle.”
The current board clearly doesn’t agree. With the addition of Bergh, the company has added five new independent directors to its board in the last five years, “reflecting the board’s commitment to ongoing refreshment,” according to the company’s earnings release.
International Markets Drive Lululemon Growth
Interim Co-CEOs Meghan Frank and André Maestrini also pointed to Lululemon’s better-than-expected Q4 performance as a sign of positive momentum.
“We are pleased to achieve fourth quarter revenue and EPS results ahead of our expectations,” said Frank, who also serves as CFO, in a statement. “As we begin our new fiscal year, we are focused on executing on our action plan, offering new and differentiated products to our guests and elevating their experiences with lululemon. Driving improvement in our full-price sales over the course of 2026 is also a key priority, particularly in North America, and will enable us to enhance our brand health and deliver long-term growth and value creation for shareholders.”
In Q4 2025, the company posted year-over-year net revenue increases of 1% to $3.6 billion and a comparable sales increase of 3%. But while international net revenue increased 17%, net revenue in the Americas decreased 4%, with international comparable sales bumping up 20% as they decreased 1% in the Americas.
A similar trend was seen throughout the full year, with net revenue increasing 5% to $11.1 billion and comparable sales increasing 2%, driven by double-digit growth in international markets even as both metrics declined in the Americas. Throughout the course of the year the company added 44 net-new company-operated stores, bringing the total to 811.
“Throughout 2025, we reported double-digit revenue growth in our international business and are taking action to incorporate learnings from across our regions to drive forward our strategies,” said Maestrini, who also serves as President and Chief Commercial Officer, in a statement. “Our teams are energized by the initial response to our recent product launches and continue to deliver successful guest activations globally. Looking ahead, we are encouraged by our opportunities in North America and around the world.”
