**Bullish Points:**
1. Net revenue for the quarter increased by 7% to $2.6 billion compared to the same period in 2024.
2. For the first three quarters of 2025, net revenue increased by 7% to $7.46 billion compared to the same period in 2024.
3. Gross profit for the quarter increased by 2% to $1.43 billion.
4. For the first three quarters of 2025, gross profit increased by 4.8% to $4.29 billion.
5. The company had no borrowings outstanding under its credit facilities as of November 2, 2025, other than $7.0 million in outstanding letters of credit and guarantee.
6. During the first three quarters of 2025, the company repurchased 3.5 million shares at a total cost of $906.6 million.
**Bearish Points:**
1. Net income for the quarter decreased to $306.8 million from $351.9 million in the same period in 2024.
2. For the first three quarters of 2025, net income was $992.3 million, down from $1.07 billion in the same period in 2024.
3. Gross margin decreased by 290 basis points to 55.6% for the quarter.
4. For the first three quarters of 2025, gross margin decreased by 120 basis points to 57.4%.
5. Selling, general and administrative expenses for the quarter increased by 8.6% to $988.3 million.
6. For the first three quarters of 2025, these expenses increased by 9.9% to $2.88 billion.
7. Income from operations for the quarter decreased by 11% to $435.9 million.
8. For the first three quarters of 2025, income from operations decreased by 4.5% to $1.40 billion.
9. Income tax expense for the quarter decreased by 12% to $134.9 million.
10. For the first three quarters of 2025, income tax expense decreased by 4.2% to $433.4 million.
11. Diluted earnings per share for the quarter were $2.59, compared to $2.87 in the same period in 2024.
12. For the first three quarters of 2025, diluted earnings per share were $8.29, compared to $8.55 in the same period in 2024.
13. Inventory as of November 2, 2025, was $1.998 billion, an increase from $1.442 billion as of February 2, 2025.
14. Cash and cash equivalents as of November 2, 2025, were $1.036 billion, down from $1.984 billion as of February 2, 2025.
15. The company experienced increased costs related to higher tariffs, markdowns, and credit card affiliate programs, partially offset by higher pricing and lower product costs.
**Summary:**
Lululemon Athletica (LULU) reported a mixed financial performance for the quarter ended November 2, 2025. On the positive side, the company saw a 7% increase in net revenue for both the quarter and the first three quarters of 2025. Gross profit also increased, and the company maintained a strong balance sheet with no significant borrowings. Additionally, the company repurchased a significant number of shares, which could be seen as a positive signal to investors.
However, there are several areas of concern. Net income and income from operations both decreased, and gross margins declined. Selling, general, and administrative expenses increased, and diluted earnings per share were lower compared to the same period in 2024. The company also experienced higher operating costs and a significant increase in inventory levels, while cash and cash equivalents decreased.
Overall, while Lululemon Athletica has shown revenue growth and maintained a strong balance sheet, the decline in profitability and increased costs are areas that may need to be addressed moving forward.
For more information, you can read the original text of Lululemon Athletica's financial report.
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