Did you analyze how Lululemon (LULU Quick QuoteLULU - Free Report) fared in its international operations for the quarter ending October 2025? Given the widespread global presence of this athletic apparel maker, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.

In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.

International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.

Upon examining LULU's recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.

For the quarter, the company's total revenue amounted to $2.57 billion, experiencing an increase of 7.1% year over year. Next, we'll explore the breakdown of LULU's international revenue to understand the importance of its overseas business operations.

Exploring LULU's International Revenue Patterns

During the quarter, Canada contributed $331.6 million in revenue, making up 12.9% of the total revenue. When compared to the consensus estimate of $329.24 million, this meant a surprise of +0.72%. Looking back, Canada contributed $321.29 million, or 12.7%, in the previous quarter, and $335.48 million, or 14%, in the same quarter of the previous year.

Of the total revenue, $465.36 million came from China Mainland during the last fiscal quarter, accounting for 18.1%. This represented a surprise of +17.71% as analysts had expected the region to contribute $395.35 million to the total revenue. In comparison, the region contributed $392.9 million, or 15.6%, and $318.34 million, or 13.3%, to total revenue in the previous and year-ago quarters, respectively.

Hong Kong SAR, Taiwan, and Macau SAR accounted for 1.8% of the company's total revenue during the quarter, translating to $46.46 million. Revenues from this region represented a surprise of -5.35%, with Wall Street analysts collectively expecting $49.09 million. When compared to the preceding quarter and the same quarter in the previous year, Hong Kong SAR, Taiwan, and Macau SAR contributed $47.63 million (1.9%) and $41.05 million (1.7%) to the total revenue, respectively.

Other geographic areas generated $320.71 million in revenues for the company in the last quarter, constituting 12.5% of the total. This represented a surprise of +11.21% compared to the $288.39 million projected by Wall Street analysts. Comparatively, in the previous quarter, Other geographic areas accounted for $326.47 million (12.9%), and in the year-ago quarter, it contributed $266.89 million (11.1%) to the total revenue.

International Revenue Predictions

Wall Street analysts expect Lululemon to report $3.59 billion in total revenue for the current fiscal quarter, indicating a decline of 0.6% from the year-ago quarter. Canada, China Mainland, Hong Kong SAR, Taiwan, and Macau SAR and Other geographic areas are expected to contribute 12.7% (translating to $455.08 million), 14.1% ($506.66 million), 1.8% ($65.64 million), and 11% ($393.84 million) to the total revenue, respectively.

For the entire year, the company's total revenue is forecasted to be $11.05 billion, which is an improvement of 4.4% from the previous year. The revenue contributions from different regions are expected as follows: Canada will contribute 12.7% ($1.4 billion), China Mainland 15.1% ($1.66 billion)Hong Kong SAR, Taiwan, and Macau SAR 1.9% ($206.47 million) and Other geographic areas 11.7% ($1.29 billion) to the total revenue.

Closing Remarks

Lululemon's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.

With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.

We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there's a positive relationship -- upward earnings predictions often result in an increase in stock prices.

With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.

At present, Lululemon holds a Zacks Rank #3 (Hold). This ranking implies that its near-term performance might mirror the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

A Review of Lululemon's Recent Stock Market Performance

Over the preceding four weeks, the stock's value has appreciated by 20.1%, against a downturn of 0.2% in the Zacks S&P 500 composite. In parallel, the Zacks Consumer Discretionary sector, which counts Lululemon among its entities, has depreciated by 2.7%. Over the past three months, the company's shares have seen an increase of 20.8% versus the S&P 500's 4% increase. The sector overall has witnessed a decline of 8.1% over the same period.