The $12 Billion Merch Moment
October 30, 2025
Promotional apparel is no longer simply a freebie – it’s
EARNINGS REPORT | March 30, 2025
Lululemon (Canada) reported Q4 revenue rose 13% to $3.6 billion, with the Americas up 7% and international sales up 38%. Operating income rose 14% to $1.0 billion.
However, analysts hammered the company for its cautious growth outlook, with shares falling 15% that day.
UBS analysts said that Lululemon “looks decreasingly capable” of delivering on previously projected growth rates of double-digit EPS growth per year. JP Morgan analysts warned the tariffs and a strong dollar could hurt the brand’s 2025 profit margins.
Still, Lululemon is better positioned than almost any other brand to survive in a possible worst-case-scenario landscape.
LandsEnd (USA) reported Q4 revenue fell 14% to $441.7 million. Net income was $18.5 million, compared to net loss of $8.6 million a year ago.
Full year net revenue fell 7% to $1.36 billion. Net income was $6.2 million, compared to net loss of $130.7 million in the previous year.
For 2025, LandsEnd has forecast flat sales, with an estimated 30% increase in net income on the back of improved efficiency, prioritization of its licensing strategy and ongoing emphasis on more high-quality sales.
H&M (Sweden) reported Q1 sales rose 3% to SEK 55,333 million ($5,525 million). Gross profit was hit by increased markdowns and investments in the customer offering. This group expects this to improve in Q2. March sales are forecast to increase 1% over last year.
Ermenegildo Zegna Group (Italy) reported revenue grew 2.2 % year-on-year to €1.95 billion ($2.1 billion) for the full year 2024. EBIT fell 16% to €184 million ($200 million). Profit fell 33% to €91 million ($99 million). The Zegna brand sales rose 4.9%, Tom Ford Fashion was up 33.5%, while Thom Browne fell 16.8%.
Dollar Tree (USA) has agreed to sell its troubled Family Dollar chain for $1 billion to private equity firms Brigade Capital Management and Macellum Capital Management. The discount retailer had purchased Family Dollar for $8.5 billion in 2015.
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