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Lululemon’s China growth offsets weakening North American sales
China Mainland revenue rose 30% year over year, lifting the segment to 19% of total company revenue, and management expects roughly 20% full year growth there.
MarketBeat Ratings highlights how China’s fitness and wellness trend is benefiting some athletic apparel brands more than others, focusing on Lululemon, Amer Sports, and Nike.
For Lululemon, the outlet points to a June 4 Q1 2026 earnings update where total revenue rose 4.3% year over year to $2.5 billion, but comparable sales fell 2%. Operating income declined 37% year over year, and management cited soft North American traffic, negative social media commentary, and underwhelming product launches.
China Mainland, however, was described as the exception, with revenue up 30% year over year, or 23% in constant currency, and comparable sales up 13%. The segment now accounts for 19% of total company revenue, up from 16% a year earlier, and management expects China Mainland sales to grow about 20% for the full year.
MarketBeat Ratings also notes that most of Lululemon’s planned international store openings this year are slated for China, alongside large-scale brand activations, including a yoga event on the Great Wall and its annual Summer Sweat Games. The piece frames China performance as key to how investors should view the stock ahead of Lululemon’s next earnings report.