lululemon athletica inc.
For the period ended Feb 1, 2026. Filed Mar 17, 2026.
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FY2026 · Filed Mar 17, 2026
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Leases
Note 19. Leases
The Company has obligations under operating leases for its store and other retail locations, distribution centers, offices, and equipment. As of February 1, 2026, the initial lease terms of the various leases generally range fromtwo to 15 years. The majority of the Company's leases include renewal options at the sole discretion of the Company. The lease term includes options to extend or terminate the lease when it is reasonably certain those options will be exercised.
The following table details the Company's net lease expense. Certain of the Company's leases include rent escalation clauses, rent holidays, and leasehold rental incentives. The majority of the Company's leases for store premises also include contingent rental payments based on sales volume. The variable lease expenses disclosed below include contingent rent payments and other non-fixed lease-related costs, including common area maintenance, property taxes, and landlord's insurance.
| 2025 | 2024 | 2023 | |
|---|---|---|---|
| (In thousands) | |||
| Net lease expense: | |||
| Operating lease expense | $405,987 | $338,756 | $282,888 |
| Short-term lease expense | 13,172 | 13,588 | 15,289 |
| Variable lease expense | 196,869 | 188,358 | 152,791 |
| Sublease income | (9,803) | (2,805) | — |
| $606,225 | $537,897 | $450,968 | |
The following table presents future minimum lease payments by fiscal year and the impact of discounting.
| (In thousands) | |
|---|---|
| 2026 | $370,705 |
| 2027 | 391,976 |
| 2028 | 334,124 |
| 2029 | 287,375 |
| 2030 | 182,005 |
| Thereafter | 537,635 |
| Future minimum lease payments | $2,103,820 |
| Impact of discounting | (305,379) |
| Present value of lease liabilities | $1,798,441 |
| Balance sheet classification: | |
| Current lease liabilities | $298,724 |
| Non-current lease liabilities | 1,499,717 |
| $1,798,441 | |
As of February 1, 2026, the Company's minimum lease commitment for distribution center operating leases which have been committed to, but not yet commenced, was $278.5 million, which is not reflected in the table above.
The weighted-average remaining lease terms and weighted-average discount rates were as follows:
| February 1, 2026 | February 2, 2025 | |
|---|---|---|
| Weighted-average remaining lease term | 6.59 years | 6.68 years |
| Weighted-average discount rate | 4.4% | 4.3% |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.