Lululemon reported a solid QQ2 2025, with revenue of $2.525B, up 6.5% year over year and 6.5% quarter over quarter. The company posted a gross profit of $1.477B and a gross margin of 58.5%, while operating income reached $523.8M and net income $370.9M, translating to an EPS of $3.10. Despite a modest year‑over‑year decline in operating income (-3.0%), the quarter delivered strong sequential earnings leverage, with operating and net income growing 19.4% and 17.9% QoQ respectively, supported by a tight cost structure and favorable product mix. The quarter’s cash generation remained robust: cash flow from operations was $328.7M, capex $177.9M, and free cash flow $150.8M. Management continued to allocate capital decisively, evidenced by $281.2M of common stock repurchased during the period, contributing to a net cash outflow for financing activities of $276.8M. The balance sheet remains healthy with cash and cash equivalents of $1.156B and total debt of $1.762B, yielding a net debt position of $0.607B. Overall, Lululemon’s QQ2 2025 results underscore durable profitability, strong liquidity, and a prudent approach to capital allocation even as growth decelerates from prior peaks.