A Business at a Glance
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lululemon athletica inc.
LULU
$13.6B
Mkt Cap
$114.28
+3.30%
lululemon athletica inc. (LULU) has a current P/E ratio of 7.9, compared to its historical median P/E of 42.7. The stock is currently considered Cheap based on its historical valuation range.
lululemon athletica inc. (LULU) has a 5-year average return on invested capital (ROIC) of 66.2%. This indicates strong capital allocation and a potential competitive advantage.
lululemon athletica inc. (LULU) has a market capitalization of $13.6B. It is classified as a large-cap stock.
lululemon athletica inc. (LULU) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 8.66%.
Based on historical P/E analysis, lululemon athletica inc. (LULU) appears cheap. The current P/E of 7.9 is 81% below its historical median of 42.7. The estimated fair value CAGR (P/E method) is 22.6%.
lululemon athletica inc. (LULU) operates in the Apparel & Other Finishd Prods Of Fabrics & Similar Matl industry, within the Consumer Cyclical sector.
Lululemon athletica inc. is a designer, distributor, and retailer of technical athletic apparel, footwear, and accessories marketed under the lululemon brand, operating an omni-channel retail model across 30 countries organized into four regional markets: Americas, China Mainland, Asia Pacific, and Europe and the Middle East. The company's product portfolio comprises women's apparel (63% of 2025 net revenue), men's apparel (24%), and accessories and other categories (13%), with offerings designed for athletic activities including yoga, running, training, and lifestyle wear. Lululemon operates through company-operated stores (811 locations as of February 1, 2026), e-commerce channels including websites and mobile apps, outlets, a "Like New" re-commerce program, and wholesale partnerships with fitness studios and corporate organizations; the company generated sales per square foot of $1,426 in 2025. The business model emphasizes direct guest connection through physical retail locations to inform product design and development, supported by a vertical retail strategy and omni-channel capabilities such as buy-online-pick-up-in-store, ship-from-store, and unified inventory management. Lululemon sources products from approximately 51 vendors (with the top five producing 47% of products in 2025) and fabrics from approximately 65 suppliers, with manufacturing concentrated in Vietnam (40%), Cambodia (18%), Sri Lanka (11%), Indonesia (11%), and Bangladesh (7%), while maintaining long-standing vendor relationships and proprietary fabric development. The company's competitive differentiation rests on technical product innovation, premium quality, brand loyalty, and its integrated approach to product design informed by direct guest feedback collected through its retail network and ambassador community.
【Product innovation and tariff mitigation】 Management is executing a multi-pillar action plan focused on accelerating product newness and innovation to re-establish momentum, particularly in North America, with plans to increase new styles as a percentage of overall assortment from 23% to approximately 35% in the upcoming spring season and reduce mainline product development timelines from 18–24 months to 12–14 months. The company is implementing enterprise-wide mitigation strategies to offset tariff headwinds, including strategic pricing actions, supply chain initiatives, and vendor negotiations, with expectations to realize approximately $320 million in net operating margin benefit from a full year of mitigation efforts in 2026 despite the removal of the de minimis exemption. China Mainland remains a key growth driver with strong momentum expected to continue, while North America is anticipated to show sequential improvement in full-price sales beginning in Q2 2026 as new product launches and activations gain traction, supported by reduced inventory units and improved chase capabilities to better read and react to guest demand. Capital expenditures are expected to remain disciplined at approximately $725–$745 million in 2026, supporting investments in new store locations, relocations, renovations, distribution center infrastructure, and technology enhancements to strengthen omni-channel capabilities and enhance the guest experience.
| Metric | Target | Period |
|---|---|---|
| Revenue | $11.35 billion–$11.5 billion | FY2026 |
| Revenue – North America | Down 1%–3% | FY2026 |
| Revenue – China Mainland | Up approximately 20% | FY2026 |
| Revenue – Rest of World | Increase in the mid-teens | FY2026 |
| Net new company-operated stores | Approximately 40–45 | FY2026 |
| Gross margin | Decrease approximately 120 basis points | FY2026 |
| Operating margin | Decrease approximately 250 basis points | FY2026 |
| Diluted earnings per share | $12.10–$12.30 | FY2026 |
| Capital expenditures | Approximately $725 million–$745 million | FY2026 |
| Revenue – Q1 FY2026 | $2.4 billion–$2.43 billion | Q1 FY2026 |
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2027 Earnings Call, Q3 FY2027 Earnings Call, Q2 FY2027 Earnings Call, Q1 FY2027 Earnings Call
| Metric | TTM | FY2026 | FY2025 | FY2024 | FY2023 | FY2022 |
|---|---|---|---|---|---|---|
| Revenue | 11.1B | 11.1B | 10.6B | 9.6B | 8.1B | 6.3B |
| Net Income | 1.6B | 1.6B | 1.8B | 1.6B | 855M | 975M |
| EPS | $13.26 | $13.26 | $14.64 | $12.20 | $6.68 | $7.49 |
| Free Cash Flow | 922M | 922M | 1.6B | 1.6B | 328M | 995M |
| ROIC | 49.4% | 56.8% | 81.6% | 76.3% | 49.1% | 67.5% |
| Gross Margin | 56.6% | 56.6% | 59.2% | 58.3% | 55.4% | 57.7% |
| Debt/Equity | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 2.2B | 2.2B | 2.5B | 2.1B | 1.3B | 1.3B |
| Operating Margin | 19.9% | 19.9% | 23.7% | 22.2% | 16.4% | 21.3% |
| ROE | 31.8% | 34.0% | 42.4% | 42.0% | 29.0% | 36.8% |
| Shares Outstanding | 119M | 119M | 124M | 127M | 128M | 130M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 1.8B | 2.1B | 2.3B | 2.6B | 3.3B | 4.0B | 4.4B | 6.3B | 8.1B | 9.6B | 10.6B | 11.1B | 11.1B |
| Gross Margin | 50.9% | 48.4% | 51.2% | 52.8% | 55.2% | 55.9% | 56.0% | 57.7% | 55.4% | 58.3% | 59.2% | 56.6% | 56.6% |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 538M | 628M | 778M | 904M | 1.1B | 1.3B | 1.6B | 2.2B | 2.8B | 3.4B | 3.8B | 4.1B | 4.1B |
| EBIT | 376M | 369M | 421M | 456M | 706M | 889M | 820M | 1.3B | 1.3B | 2.1B | 2.5B | 2.2B | 2.2B |
| Op. Margin | 20.9% | 17.9% | 18.0% | 17.2% | 21.5% | 22.3% | 18.6% | 21.3% | 16.4% | 22.2% | 23.7% | 19.9% | 19.9% |
| Net Income | 239M | 266M | 303M | 259M | 484M | 646M | 589M | 975M | 855M | 1.6B | 1.8B | 1.6B | 1.6B |
| Net Margin | 13.3% | 12.9% | 12.9% | 9.8% | 14.7% | 16.2% | 13.4% | 15.6% | 10.5% | 16.1% | 17.1% | 14.2% | 14.2% |
| Non-Recurring | 12M | 0 | 0 | 59M | 0 | 0 | 0 | 0 | 781M | 149M | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 57.0% | 56.0% | 52.5% | 44.4% | 81.5% | 89.9% | 52.0% | 67.5% | 49.1% | 76.3% | 81.6% | 56.8% | 49.4% |
| ROE | 21.9% | 25.1% | 25.4% | 17.5% | 31.8% | 38.0% | 26.1% | 36.8% | 29.0% | 42.0% | 42.4% | 34.0% | 31.8% |
| ROA | 18.8% | 20.4% | 20.4% | 14.1% | 23.7% | 24.1% | 15.8% | 21.4% | 16.2% | 24.4% | 24.7% | 19.7% | 18.7% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 314M | 298M | 386M | 489M | 743M | 669M | 803M | 1.4B | 966M | 2.3B | 2.3B | 1.6B | 1.6B |
| Free Cash Flow | 195M | 154M | 237M | 331M | 517M | 386M | 574M | 995M | 328M | 1.6B | 1.6B | 922M | 922M |
| Owner Earnings | 248M | 214M | 282M | 363M | 592M | 462M | 567M | 1.1B | 597M | 1.8B | 1.7B | 1.0B | 1.0B |
| CapEx | 120M | 143M | 150M | 158M | 226M | 283M | 229M | 395M | 639M | 652M | 689M | 681M | 681M |
| Maint. CapEx | 58M | 73M | 88M | 108M | 122M | 162M | 185M | 224M | 292M | 379M | 447M | 496M | 496M |
| Growth CapEx | 61M | 70M | 62M | 50M | 103M | 121M | 44M | 170M | 347M | 272M | 243M | 185M | 185M |
| D&A | 58M | 73M | 88M | 108M | 122M | 162M | 185M | 224M | 292M | 379M | 447M | 496M | 496M |
| CapEx/OCF | 38.1% | 48.0% | 38.7% | 32.3% | 30.4% | 42.3% | 28.5% | 28.4% | 66.1% | 28.4% | 30.3% | N/A | 42.5% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 147M | 274M | 29M | 100M | 598M | 173M | 64M | 813M | 444M | 559M | 1.6B | 1.2B | 1.2B |
| Buyback Yield | 1.5% | 3.2% | 0.3% | 0.9% | 3.0% | 0.6% | 0.2% | 2.0% | 1.1% | 0.9% | 3.6% | 0.0% | 8.7% |
| Stock-Based Comp | 8.3M | 10M | 17M | 18M | 29M | 46M | 51M | 69M | 78M | 94M | 90M | 62M | 62M |
| Debt Repayment | 0 | 0 | 923K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | N/A | N/A | N/A | N/A | N/A | -1.1B | -1.2B | -1.3B | -1.2B | -2.2B | -2.0B | -1.8B | -1.8B |
| Cash & Equiv. | 664M | 501M | 735M | 991M | 881M | 1.1B | 1.2B | 1.3B | 1.2B | 2.2B | 2.0B | 1.8B | 1.8B |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Debt/Equity | 0.19 | 0.28 | 0.22 | 0.25 | 0.44 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest Coverage | 26859.5 | 7097.6 | 81.3 | 57000.1 | 506.3 | 2735.7 | 7454.4 | 111112.9 | 11451.8 | 9114.0 | 5242.0 | 2150.4 | 2150.4 |
| Equity | 1.1B | 1.0B | 1.4B | 1.6B | 1.4B | 2.0B | 2.6B | 2.7B | 3.1B | 4.2B | 4.3B | 5.0B | 5.0B |
| Total Assets | 1.3B | 1.3B | 1.7B | 2.0B | 2.1B | 3.3B | 4.2B | 4.9B | 5.6B | 7.1B | 7.6B | 8.5B | 8.5B |
| Total Liabilities | 207M | 287M | 298M | 402M | 639M | 1.3B | 1.6B | 2.2B | 2.5B | 2.9B | 3.3B | 3.5B | 3.5B |
| Intangibles | 1.8M | 947K | 324K | 73K | 0 | 241K | 80M | 71M | 22M | 0 | 12M | 6.3M | 6.3M |
| Retained Earnings | 1.0B | 1.0B | 1.3B | 1.5B | 1.3B | 1.8B | 2.3B | 2.5B | 2.9B | 3.9B | 4.1B | 4.5B | 4.5B |
| Working Capital | 791M | 692M | 921M | 1.1B | 929M | 1.2B | 1.2B | 1.2B | 1.7B | 2.4B | 2.1B | 2.4B | 2.4B |
| Current Assets | 951M | 917M | 1.2B | 1.4B | 1.4B | 1.8B | 2.1B | 2.6B | 3.2B | 4.1B | 4.0B | 4.3B | 4.3B |
| Current Liabilities | 160M | 226M | 242M | 293M | 500M | 620M | 883M | 1.4B | 1.5B | 1.6B | 1.8B | 1.9B | 1.9B |
| Per Share Data | |||||||||||||
| EPS | 1.66 | 1.89 | 2.21 | 1.90 | 3.61 | 4.93 | 4.50 | 7.49 | 6.68 | 12.20 | 14.64 | 13.26 | 13.26 |
| Owner EPS | 1.72 | 1.52 | 2.05 | 2.67 | 4.42 | 3.53 | 4.33 | 8.41 | 4.66 | 14.35 | 14.01 | 8.77 | 8.77 |
| Book Value | 7.57 | 7.30 | 9.91 | 11.73 | 10.79 | 14.91 | 19.55 | 21.04 | 24.61 | 33.31 | 34.89 | 41.66 | 41.66 |
| Cash Flow/Share | 2.18 | 2.11 | 2.81 | 3.59 | 5.54 | 5.11 | 6.14 | 10.67 | 7.55 | 18.07 | 18.34 | 13.46 | 17.43 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 144.0M | 140.8M | 137.3M | 136.1M | 134.0M | 131.0M | 130.9M | 130.2M | 128.0M | 127.1M | 123.9M | 119.1M | 119.1M |
| Valuation | |||||||||||||
| P/E Ratio | 41.2 | 32.6 | 29.5 | 42.7 | 41.7 | 44.1 | 69.3 | 42.7 | 46.3 | 38.0 | 25.0 | N/A | 8.6 |
| P/FCF | 50.6 | 56.3 | 37.8 | 33.3 | 39.0 | 73.7 | 71.0 | 41.9 | 120.7 | 35.9 | 28.6 | N/A | 14.8 |
| EV/EBIT | N/A | N/A | N/A | N/A | 27.3 | 30.8 | 48.3 | 30.3 | 28.9 | 26.6 | N/A | N/A | 5.3 |
| Price/Book | 9.0 | 8.4 | 6.6 | 6.9 | 13.9 | 14.6 | 15.9 | 15.2 | 12.6 | 13.9 | 10.5 | N/A | 2.7 |
| Price/Sales | 3.8 | 4.0 | 3.9 | 3.2 | 5.1 | 6.4 | 9.1 | 7.7 | 5.0 | 5.3 | 3.9 | N/A | 1.2 |
| FCF Yield | 2.0% | 1.8% | 2.6% | 3.0% | 2.6% | 1.4% | 1.4% | 2.4% | 0.8% | 2.8% | 3.5% | N/A | 6.8% |
| Market Cap | 9.9B | 8.7B | 9.0B | 11.0B | 20.2B | 28.5B | 40.8B | 41.7B | 39.6B | 59.0B | 45.3B | 0 | 13.6B |
| Avg. Price | 47.44 | 59.17 | 66.37 | 63.12 | 125.01 | 195.74 | 305.97 | 370.33 | 318.70 | 398.76 | 332.34 | 0.00 | 114.28 |
| Year-End Price | 68.44 | 61.56 | 65.26 | 81.10 | 150.42 | 217.41 | 311.68 | 319.94 | 309.20 | 464.14 | 365.61 | 0.00 | 114.28 |
lululemon athletica inc. passes 8 of 9 quality checks, indicating strong fundamentals.
lululemon athletica inc. trades at 7.9x trailing earnings, compared to its 15-year median P/E of 42.7x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 11.4x vs a median of 38.4x. The company's 5-year average ROIC is 66.2% with a gross margin of 57.4%. Total shareholder yield (buybacks) is 8.7%. At current prices, the estimated annualized return to fair value is +23.3%.
lululemon athletica inc. (LULU) reported annual revenue of $11.1 billion in its most recent fiscal year, based on SEC EDGAR filings.
lululemon athletica inc. (LULU) has a net profit margin of 14.2%. This is a healthy margin.
lululemon athletica inc. (LULU) generated $922 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
lululemon athletica inc. (LULU) has a debt-to-equity ratio of 0.00. This indicates a conservatively financed balance sheet.
lululemon athletica inc. (LULU) reported earnings per share (EPS) of $13.26 in its most recent fiscal year.
lululemon athletica inc. (LULU) has a return on equity (ROE) of 34.0%. This indicates the company generates strong returns for shareholders.
lululemon athletica inc. (LULU) has a 5-year average gross margin of 57.4%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 18 years of financial data for lululemon athletica inc. (LULU), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
lululemon athletica inc. (LULU) has a book value per share of $41.66, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management is executing a multi-pillar action plan focused on accelerating product newness and innovation to re-establish momentum, particularly in North America, with plans to increase new styles as a percentage of overall assortment from 23% to approximately 35% in the upcoming spring season and reduce mainline product development timelines from 18–24 months to 12–14 months. The company is implementing enterprise-wide mitigation strategies to offset tariff headwinds, including strategic pricing actions, supply chain initiatives, and vendor negotiations, with expectations to realize approximately $320 million in net operating margin benefit from a full year of mitigation efforts in 2026 despite the removal of the de minimis exemption. China Mainland remains a key growth driver with strong momentum expected to continue, while North America is anticipated to show sequential improvement in full-price sales beginning in Q2 2026 as new product launches and activations gain traction, supported by reduced inventory units and improved chase capabilities to better read and react to guest demand. Capital expenditures are expected to remain disciplined at approximately $725–$745 million in 2026, supporting investments in new store locations, relocations, renovations, distribution center infrastructure, and technology enhancements to strengthen omni-channel capabilities and enhance the guest experience.
Based on recent SEC filings and earnings calls, lululemon athletica inc. (LULU) has provided the following forward guidance: Revenue: $11.35 billion–$11.5 billion (FY2026); Revenue – North America: Down 1%–3% (FY2026); Revenue – China Mainland: Up approximately 20% (FY2026); Revenue – Rest of World: Increase in the mid-teens (FY2026); Net new company-operated stores: Approximately 40–45 (FY2026), plus 7 additional metrics.
| Revenue – China Mainland Q1 FY2026 |
| Increase 25%–30% |
| Q1 FY2026 |
| Diluted earnings per share – Q1 FY2026 | $1.63–$1.68 | Q1 FY2026 |
Revenue (FY2026): “We expect revenue to be in the range of $11.35 billion-$11.5 billion, representing growth of 2%-4% relative to 2025.”
Revenue – North America (FY2026): “By region, we expect revenue in North America to be down 1%-3%, with the U.S. down 1%-3%.”
Revenue – China Mainland (FY2026): “We expect revenue in China Mainland to be up approximately 20%”
Revenue – Rest of World (FY2026): “In rest of world, we expect revenue to increase in the mid-teens.”
Net new company-operated stores (FY2026): “Globally, we expect to open approximately 40 to 45 net new company-operated stores in 2026”
Gross margin (FY2026): “For the full year, we expect gross margin to decrease approximately 120 basis points relative to last year”
Operating margin (FY2026): “When looking at operating margins for the full year 2026, we expect it to decrease by approximately 250 basis points versus last year.”
Diluted earnings per share (FY2026): “For the fiscal year 2026, we expect diluted earnings per share in the range of $12.10-$12.30 versus EPS of $13.26 in 2025.”