Lululemon designs, markets, and sells premium technical athletic apparel — including leggings, tops, and accessories — for yoga, running, training, and active lifestyle use. Lululemon sells directly to consumers through 811 company-operated stores globally and e-commerce, deliberately avoiding traditional wholesale or department store distribution to maintain brand control. Women's apparel represents roughly 63% of net revenue, men's about 24%, and accessories the remainder. The Americas account for roughly 71% of revenue, though the U.S. business has softened as core lounge and social franchises became stale. China Mainland, about 16% of revenue, is Lululemon's fastest-growing market and the company plans to open more stores there than anywhere else in FY26. Lululemon's profitability depends on full-price selling with minimal markdowns — when assortments underperform, markdowns rise and margins compress. The company sources heavily from Vietnam, Cambodia, Sri Lanka, and Indonesia, making it meaningfully exposed to tariff headwinds, which are expected to cost roughly $320M net in FY26 before mitigation. To address both the U.S. product issue and tariff costs, Lululemon is accelerating its product development cycle, increasing new style penetration in its assortment, and pursuing supply chain restructuring. Lululemon generates substantial free cash flow, carries no debt, and returns capital primarily through share buybacks.