Lululemon Athletica reported Q1 FY2025 (QQ1 2025) revenue of USD 2.37066 billion, up 7.32% year over year, with gross profit of USD 1.38313 billion and a gross margin of 58.34%. Operating income reached USD 438.63 million (operating margin 18.50%), and net income was USD 314.57 million (net margin 13.27%), delivering EPS of USD 2.61 (diluted USD 2.60). The quarter exhibited a pronounced sequential seasonality with revenue down 34.36% quarter over quarter, a typical pattern after the holiday period. Despite the seasonal headwinds, gross margins remained robust, and the company continued to generate solid profitability on a YoY basis, albeit with notable QoQ declines driven by seasonality and greater marketing/fulfillment leverage earlier in the year. Free cash flow was negative USD 271.22 million, with operating cash flow at USD -118.95 million and capital expenditures of USD 152.26 million, underscoring working capital dynamics and strategic investments. The balance sheet remains strong with cash and equivalents of USD 1.325 billion and a net debt position of USD -381.51 million, supported by a sizable equity base of USD 4.289 billion. Management’s ongoing emphasis appears to be on direct-to-consumer growth, pricing and product mix optimization, and inventory discipline, while continuing to invest in store fleet, digital platforms, and international expansion. Investors should monitor demand trends, inventory levels, and cash flow generation as the year progresses, alongside competitive dynamics in premium athleisure.