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Canada’s Lululemon posts 7% revenue growth in Q3 despite US slowdown

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Canada’s Lululemon posts 7% revenue growth in Q3 despite US slowdown



Canadian technical athletic apparel and footwear company Lululemon Athletica Inc has reported improved-than-expected results for the third quarter (Q3) of fiscal 2025 (FY25) ended November 2, with net revenue rising 7 per cent year-over-year (YoY) to $2.6 billion. The improvement in this quarter was supported by strong international momentum despite continued pressure in the Americas.

The gross profit increased 2 per cent to $1.4 billion, though gross margin contracted by 290 basis points (bps) to 55.6 per cent. The operating income fell 11 per cent to $435.9 million, with operating margin declining to 17 per cent. Diluted earnings per share (EPS) stood at $2.59, compared with $2.87 a year earlier.

Lululemon Athletica has reported better-than-expected Q3 FY25 results, with net revenue rising 7 per cent YoY to $2.6 billion, driven by a 33 per cent surge in international sales despite weakness in the Americas.
Gross margin and operating income declined, while EPS fell to $2.59.
The company expanded its store base, increased share buybacks, and maintained a cautious outlook amid tariff pressures.

Region-wise, Americas revenue declined 2 per cent, international revenue surged 33 per cent. Comparable sales increased 1 per cent, or 2 per cent on a constant-dollar basis, with international comparable sales jumping 18 per cent, offsetting a 5 per cent decline in the Americas, Lululemon Athletica said in a press release.

During the quarter, Lululemon opened 12 net new company-operated stores, ending with 796 stores globally. The company also repurchased 1 million shares for $189 million. In December, the board approved a further $1 billion increase in the share repurchase programme, taking remaining authorisation to approximately $1.6 billion.

Lululemon ended the quarter with $1 billion in cash and cash equivalents and $593 million available under its revolving credit facility. Inventories increased 11 per cent YoY to $2 billion, with unit inventories up 4 per cent.

“We delivered better-than-expected revenue and EPS in the third quarter as a result of our disciplined execution and ongoing strength internationally. Looking forward, we will continue to leverage our strong financial position to invest in our growth initiatives, while maintaining operational rigor,” said Meghan Frank, chief financial officer (CFO) at Lululemon.

Looking ahead, the company expects fourth quarter (Q4) FY25 revenue between $3.5 billion and $3.585 billion, with diluted EPS of $4.66 to $4.76. For full-year 2025, revenue is projected at $10.962 billion to $11.047 billion, with EPS of $12.92 to $13.02.

The outlook factors in an estimated $210 million reduction in operating income due to higher US import tariffs and the removal of the de minimis exemption, partially offset by mitigation measures. The guidance excludes the impact of any future share repurchases.

The outlook factors in an estimated $210 million reduction in operating income due to higher US import tariffs and the removal of the de minimis exemption, partially offset by mitigation measures. The guidance excludes the impact of any future share repurchases, added the release.

Fibre2Fashion News Desk (SG)



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Fashion

CELYS expands filament manufacturing capability

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CELYS expands filament manufacturing capability



Intimiti has taken a significant step forward in its material development strategy with the acquisition of a dedicated manufacturing line, strengthening its ability to support innovation, customisation, and early-stage commercialisation of compostable polyester filaments.

This expanded capability addresses a recurring challenge faced by brands, mills, and innovators: limited access to flexible production volumes and technical customisation during the development phase. Conventional polyester manufacturing is typically optimised for large scale output and high minimum order quantities, leaving little room for small order volumes, iterative trials, or application specific specifications. The new CELYS manufacturing line is designed to close this gap.

Intimiti has strengthened its CELYS material strategy by acquiring a dedicated manufacturing line to support innovation, customisation and early-stage commercialisation of compostable polyester filaments.
The new line enables small batches, tailored specifications and faster concept-to-validation, while advancing CELYS as a flexible platform with greater transparency.

Enabling Development and Filament Innovation

The newly acquired manufacturing line enables Celys to support smaller order quantities and customised filament specifications, allowing partners to move efficiently from concept to validation. Designed for development, sampling, and specialised applications, this capability delivers the precision and responsiveness required during early-stage material innovation, while enabling closer collaboration on filament parameters, functional requirements, and performance optimisation.

These advances mark Celys’ evolution from a single material innovation to a more flexible material platform, designed to integrate seamlessly into existing textile ecosystems while enabling greater agility at the front end of development.

Building the Foundation for Transparency

Alongside the expansion of manufacturing capability, Celys is progressing toward the release of Life Cycle Assessment data. Additional technical specifications and performance metrics are also in development, providing partners with greater transparency and confidence as projects advance toward commercialisation.

“Our focus extends beyond material innovation to building the infrastructure required for adoption at scale,” said Dr Gray Li, Chief Technology Officer at Celys. “This manufacturing capability enables closer collaboration, increased flexibility, and more practical pathways from development to commercial products.”

Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged.

Fibre2Fashion News Desk (HU)



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Why will fashion industry miss its 2030 deadline for climate targets?

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Why will fashion industry miss its 2030 deadline for climate targets?



As a result, the industry’s **** climate deadline depends on delivering sharp near-term emissions reductions, accelerating the shift to renewable energy and aligning business models with a *.*°C trajectory. However, global assessments suggest the sector is unlikely to meet these goals on its current trajectory. According to the Apparel Impact Institute (Aii), a global nonprofit focused on reducing the environmental impact of the apparel and footwear industry, sector emissions remain far from the pathway required to limit global warming to *.*°C. Industry greenhouse gas emissions rose by *.* per cent in **** compared with ****, marking the first year-on-year increase since tracking began in ****.

Analysis by global management consulting firm McKinsey and fashion advocacy group Global Fashion Agenda indicates that emissions must fall to about *.* billion tonnes of carbon dioxide equivalent by **** to stay aligned with a *.*°C pathway. Without stronger action, continued industry growth could push emissions to nearly twice that level.



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Indonesia’s thrift surge fuels waste and textile industry woes

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Indonesia’s thrift surge fuels waste and textile industry woes



Indonesia’s second-hand clothing boom, despite a long-standing ban on importing used clothes (since ****) aimed at protecting the domestic textile industry, preventing health and environmental risks, and promoting local production, is fast becoming one of the country’s most troubling economic and environmental dilemmas.

What began as an underground trade catering to budget-conscious shoppers has evolved into a full-blown national concern—one that is hollowing out the industry, overwhelming landfills, and upending the domestic market.



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