Lululemon 2026 Guidance Hints At Bold Expansion
Lululemon guidance for fiscal 2026 points to revenue of $11.35 billion to $11.50 billion, or 2% to 4% growth, while store expansion remains a major part of the company's plan as it added 44 net new company-operated stores in fiscal 2025 to reach 811 locations.
What the outlook means
The latest revenue outlook shows a slower growth profile than the company's earlier long-term ambition to double sales to $12.5 billion by 2026, which was set under its "Power of Three x2" strategy. That earlier plan also called for annual square footage growth in the low double digits and mid-teens growth in stores, so the fiscal 2026 guide suggests the brand is still expanding, but from a more mature base.
In practical terms, the guidance says lululemon still expects to grow, but not at the pace investors once associated with the brand's 2026 target. The company's fiscal 2025 results, which included $11.1 billion in net revenue, show the business has scaled sharply since the original 2021 baseline of roughly $6.25 billion.
Store openings strategy
Lululemon's store openings strategy remains central to its international push, especially outside North America. The company has already signaled a 2026 expansion into six new markets through franchise partnerships, including Greece, Austria, Poland, Hungary, Romania, and India, building on earlier entries into Italy, Denmark, Turkey, and Belgium.
That approach matters because lululemon is now using a mix of company-operated stores and franchise partnerships to accelerate market entry without relying only on direct capital spending. The brand's international expansion has been positioned as a long-term growth engine, with prior planning that aimed to quadruple international revenue from 2021 levels by 2026.
Why growth is slowing
The market's concern is not that lululemon is shrinking, but that its growth rate is normalizing after a period of exceptional expansion. Reuters reported in March 2026 that fiscal 2026 revenue guidance came in below some analyst expectations, which is one reason the stock reaction has been sensitive to any sign of deceleration.
At the same time, the company has continued to add locations, which can support revenue over time even when same-store momentum is more modest. In fiscal 2025, lululemon said it opened 44 net new company-operated stores, bringing its total to 811, a sign that physical retail still plays a meaningful role in its strategy.
Revenue and expansion snapshot
| Metric | Fiscal 2025 / Prior Plan | Fiscal 2026 Guidance / Expansion Plan |
|---|---|---|
| Net revenue | $11.1 billion actual for fiscal 2025 | $11.35 billion to $11.50 billion |
| Growth rate | 5% year over year | 2% to 4% year over year |
| Store count | 811 company-operated stores | Continued openings in six new markets through franchise partnerships |
| Long-term target | 2026 plan set to reach $12.5 billion | Actual guidance now implies a slower path than that earlier target |
What management has signaled
The key message from management is that lululemon still sees runway in international markets, men's apparel, digital commerce, and new store openings. Under the earlier growth framework, the company said men's and digital revenue would double and international revenue would quadruple relative to 2021 by 2026, with stores expected to grow in the mid-teens on a CAGR basis.
Lululemon's earlier roadmap framed 2026 as a year of scale, but the newer guidance indicates that the company is now optimizing growth rather than chasing the same explosive trajectory.
That distinction is important for readers tracking the retailer's performance because opening more stores does not automatically translate into faster revenue growth. When a brand gets larger, each new location typically contributes less incremental growth than it did when the base was much smaller.
Market context
Lululemon's expansion story has been especially strong in international markets, where management has repeatedly identified room for more store openings and brand penetration. The company's 2026 franchise-led launches in Europe and India are notable because they broaden the footprint without requiring a full company-operated buildout in every country.
Historically, lululemon has used store growth as both a brand-building tool and a revenue driver, and its move beyond North America helped fuel the multi-year rise from about $6.25 billion in 2021 revenue to more than $11 billion in fiscal 2025. That makes the 2026 guide less about whether the expansion is working and more about how quickly the next phase can scale.
Key points
- Lululemon's fiscal 2026 revenue guidance is $11.35 billion to $11.50 billion, implying 2% to 4% growth.
- The company opened 44 net new company-operated stores in fiscal 2025 and ended the year with 811 locations.
- 2026 international expansion includes six new markets through franchise partnerships: Greece, Austria, Poland, Hungary, Romania, and India.
- The company's earlier long-term plan targeted $12.5 billion in revenue by 2026, which now appears more ambitious than the current guidance implies.
- Store openings remain important, but slower growth suggests lululemon is shifting from hypergrowth to more measured expansion.
Timeline
- April 2022: lululemon outlined its "Power of Three x2" plan, targeting $12.5 billion in revenue by 2026.
- Fiscal 2025: the company reported $11.1 billion in revenue and 44 net new company-operated stores.
- March 2026: lululemon issued fiscal 2026 guidance of $11.35 billion to $11.50 billion in revenue.
- 2026: the brand plans new market entries in Europe and India through franchise agreements.
Frequently asked questions
Bottom line
Lululemon's 2026 guidance suggests the company is still expanding revenue and store count, but at a more moderate pace than its earlier long-term plan implied. The clearest growth lever now is international market expansion, where new store openings and franchise launches should keep the brand visible even as top-line growth normalizes.
Everything you need to know about Lululemon 2026 Guidance Hints At Bold Expansion
Is lululemon still opening stores in 2026?
Yes. The company announced 2026 expansion into six new markets through franchise agreements, while also continuing its broader store-growth strategy.
Why does the 2026 revenue guidance look conservative?
The guidance is lower than what some investors expected and slower than the company's earlier high-growth plan, which reflects a maturing business and a tougher comparison base.
Does store growth still matter for lululemon?
Yes. Store openings remain a core part of lululemon's brand and revenue strategy, especially as it expands internationally and builds awareness in new markets.
What was lululemon's old 2026 target?
The company's earlier five-year plan aimed to double revenue to $12.5 billion by 2026.
How many stores did lululemon have recently?
As of fiscal 2025, lululemon reported 811 company-operated stores after opening 44 net new locations during the year.