Lululemon Athletica (LULU)

Consumer Discretionary · $13.0B market cap · SEC CIK 0001397187

Next reports on Dec 9, 2026, after the close, with analysts expecting $1.13 in earnings per share.

52-week range $90.38 to $225.98. 51% below its 52-week high and 22% above its low.

The case for LULU

• Cheap for its growth: 9.2× earnings, where 15% a year of growth would justify about 31×.
• Earns 30% back on shareholder equity.
• Free cash flow of 7.1% of its market value a year: a lot of cash for the price.
• Has compounded revenue at 20.3% a year over five years.
• Carries essentially no debt.
• Gross margin of 56% absorbs cost shocks.

The case against

• Down 32.3% over the past year.
• Earnings per share fell 17.1%.
• Near the bottom of its 52-week range, 51% below the high. Falling prices usually have a reason; find it first.
• Revenue grew only 1.7%, roughly the pace of inflation.

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Consumer Discretionary companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Each factor except momentum is half fixed thresholds, half rank among the 48 Consumer Discretionary companies.

The financials

The financials, five years deep

Pulled from Lululemon Athletica's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

What Lululemon Athletica says it does

lululemon athletica inc. is principally a designer, distributor, and retailer of technical athletic apparel, footwear, and accessories. Our vision is to create transformative products and experiences that build meaningful connections, unlocking greater possibility and wellbeing for all. Since our inception, we have fostered a distinctive corporate culture; we promote a set of core values in our business which include taking personal responsibility, acting with courage, valuing connection and inclusion, and choosing to have fun. These core values attract passionate and motivated employees who are driven to achieve personal and professional goals, and share our purpose "to elevate human potential by helping people feel their best." In this Annual Report on Form 10-K for the fiscal year ended February 1, 2026, lululemon athletica inc. (together with its subsidiaries) is referred to as "lululemon," "the Company," "we," "us," or "our." We…

Risk factors LULU lists in its 10-K

• Our success depends on our ability to maintain our brand value and reputation
• We operate in a highly competitive market and our competitors may compete more effectively than we can, resulting in a loss of our market share and a decrease in our net revenue and profitability
• If we are unable to anticipate consumer preferences and successfully develop and introduce new, innovative, and differentiated products, we may not be able to maintain or increase our sales and profitability
• If any of our products have manufacturing or design defects or are otherwise unacceptable to us or our guests, our business could be harmed
• Our sales and profitability may decline as a result of increasing costs and decreasing selling prices
• Our results of operations could be materially harmed if we are unable to accurately forecast guest demand for our products
• Our limited operating experience and limited brand recognition in new international markets and new product categories may limit our expansion and cause our business and growth to suffer
• Our future success is dependent on the service of our senior management and our ability to maintain our culture and to attract, manage, and retain highly qualified individuals
• We may not be able to effectively manage our growth and the increased complexity of our business and as a result our brand image and financial performance may suffer
• Changes in consumer shopping preferences, and shifts in distribution channels could materially impact our results of operations
• We are subject to risks associated with leasing retail and distribution space subject to long-term and non-cancelable leases
• Our business is affected by seasonality, which could result in fluctuations in our operating results
• Changes to U.S. tariff and customs policy, including the elimination of the de minimis exemption, have and may further materially increase product costs and negatively affect margins
• Macroeconomic volatility, inflationary pressures, and shifts in consumer sentiment may reduce demand for our products
• Global political and economic instability, including geopolitical conflicts and political polarization, could disrupt our operations and increase costs
• Trade restrictions, tariffs, and customs changes could disrupt our supply chain and compress margins
• Changes in tax laws, transfer pricing, or unanticipated tax liabilities could adversely affect our effective income tax rate and profitability
• Our failure to comply with trade and other regulations could lead to investigations or actions by government regulators and negative publicity
• Our financial condition could be adversely affected by public health crises
• Disruptions of our supply chain, which is dependent on international suppliers, could have a material adverse effect on our operating and financial results
• A relatively small number of vendors supply and manufacture a significant portion of our products, and losing one or more of these vendors could adversely affect our business and results of operations
• Our business could be harmed if our suppliers and manufacturers do not comply with our Vendor Code of Ethics or applicable laws
• The fluctuating cost of raw materials and the cost of producing our products could increase our cost of goods sold
• If we encounter problems with our distribution system, our ability to deliver our products to the market and to meet guest expectations could be harmed
• We may be unable to safeguard against security breaches which could damage our customer relationships and result in significant legal and financial exposure
• Privacy and data protection laws increase our compliance burden
• Disruption of our technology systems or unexpected network interruption could disrupt our business
• Our technology-based systems that give our customers the ability to shop with us online may not function effectively
• Our fabrics and manufacturing technology generally are not patented and can be imitated by our competitors. If our competitors sell products similar to ours at lower prices, our net revenue and profitability could suffer
• Our failure or inability to protect our intellectual property rights could diminish the value of our brand and weaken our competitive position
• Our trademarks, patents, and other proprietary rights could potentially conflict with the rights of others and we may be prevented from selling some of our products
• Our business could be negatively affected as a result of actions of stockholders, activists, or shifting consumer sentiment
• We are subject to periodic claims and litigation that could result in unexpected expenses and could ultimately be resolved against us
• Anti-takeover provisions of Delaware law and our certificate of incorporation and bylaws could delay and discourage takeover attempts that stockholders may consider to be favorable
• Climate change and related pressures may adversely impact our business, supply chain, and financial results
• We face heightened scrutiny and legal risks from competing pressures regarding our ESG practices and disclosures
• Cybersecurity Program and Incident Response
• Impact of Cybersecurity Risks on Strategy and Results

Filings

Other Consumer Discretionary companies