Lululemon Athletica (LULU)
Consumer Discretionary · $11.9B market cap · SEC CIK 0001397187
fundamentals score out of 100
Next reports on Dec 9, 2026, after the close, with analysts expecting $1.13 in earnings per share.
The case for LULU
- Cheap on earnings at 8.4×, well under the market's usual 20×.
- Earns 30% back on shareholder equity.
- Free cash flow of 7.7% 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 40.3% over the past year.
- Earnings per share fell 17.1%.
- Near the bottom of its 52-week range, 54% 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. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 89 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 52 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 68 |
| Momentumhow the price has behaved lately | 15 |
| Stabilityhow violently it moves, what it owes and what it pays you | 73 |
- Each factor except momentum is half fixed thresholds, half rank among the 48 Consumer Discretionary companies.
Key numbers
| Price / earnings | 8.4× |
|---|---|
| Price / book | 2.93× |
| Price / sales | 1.1× |
| Revenue growth (YoY) | +1.7% |
| EPS growth (YoY) | -17.1% |
| Gross margin | 56% |
| Operating margin | 18% |
| Net margin | 13% |
| Return on equity | 30% |
| Debt / equity | 0.00× |
| Current ratio | 2.19 |
| Dividend yield | none |
| Beta | 0.84 |
| 52-week range | $95.35 – $225.98 |
| Position in that range | 6% of the way up |
| 3-month return | -9.4% |
| 1-year return | -40.3% |
Five years of financials, as filed
Pulled from Lululemon Athletica's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $11.1B | $10.6B | $9.6B | $8.1B | $6.3B |
| Gross profit | $6.3B | $6.3B | $5.6B | $4.5B | $3.6B |
| Operating income | $2.2B | $2.5B | $2.1B | $1.3B | $1.3B |
| Net income | $1.6B | $1.8B | $1.6B | $855M | $975M |
| Operating cash flow | $1.6B | $2.3B | $2.3B | $966M | $1.4B |
| Capital expenditure | $681M | $689M | $652M | $639M | $395M |
| Total assets | $8.5B | $7.6B | $7.1B | $5.6B | $4.9B |
| Total liabilities | $3.5B | $3.3B | $2.9B | $2.5B | $2.2B |
| Shareholder equity | $5.0B | $4.3B | $4.2B | $3.1B | $2.7B |
| Cash | $1.8B | $2.0B | $2.2B | $1.2B | $1.3B |
| Free cash flow | $922M | $1.6B | $1.6B | $328M | $995M |
| Gross margin | 56.6% | 59.2% | 58.3% | 55.4% | 57.7% |
| Operating margin | 19.9% | 23.7% | 22.2% | 16.4% | 21.3% |
| Net margin | 14.2% | 17.1% | 16.1% | 10.5% | 15.6% |
| Diluted shares | 119M | 124M | 127M | 128M | 130M |
Share count is down 8.6% over 4 years. Buybacks have been shrinking the pie.
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
- Other Factors Affecting Our Business
- Selling, General and Administrative Expenses
- Comparable Sales and Sales Per Square Foot
- Contractual Obligations and Commitments
- Critical Accounting Policies and Estimates
- Deferred taxes on undistributed net investment of foreign subsidiaries
- Opinions on the Financial Statements and Internal Control over Financial Reporting
- Definition and Limitations of Internal Control over Financial Reporting
- (Amounts in thousands, except per share amounts)
- Accumulated Other Comprehensive Loss
- Note 1. Nature of Operations and Basis of Presentation
- Note 2. Summary of Significant Accounting Policies
- Fair value of financial instruments
- Derivatives not designated as hedging instruments