lululemon athletica inc.
Apparel & Other Finishd Prods Of Fabrics & Similar Matl
Lululemon Athletica designs, distributes, and markets athletic apparel, footwear, and accessories for women, men, and girls. The company offers pants, shorts, tops, and jackets for both leisure and athletic activities such as yoga and running.
It is a $10.9B consumer company. Revenue shrank 18.1% over the last year, it keeps 12¢ of every dollar of sales as profit, and its net debt equals ~0.5 years of free cash flow. It trades at 7.7× earnings — near the lowest of its own history.
- Website
- lululemon.com
- Location
- Vancouver, A1
- Employees
- 39 000
- Sector
- Consumer Cyclical
- Founded
- 1998
Skills
Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.
Strong valuation, profitability and moat; Growth lags behind.
Valuation100
- P/E vs own history0th pct · 25/25
- FCF yield14.9% · 25/25
- P/S1.0x · 25/25
- EV/EBITDA4.8x · 25/25
Growth32
- Revenue CAGR8.2% · 12/25
- Net income CAGR16.6% · 20/25
- EPS CAGR ~5Y-18.3% · 0/25
- Fwd implied growth-33.4% · 0/25
Profitability77
- ROIC13.0% · 12/25
- ROE29.7% · 25/25
- Net margin12.1% · 20/25
- Operating margin17.8% · 20/25
Health70
- Altman Z3.55 · 25/25
- Current ratio2.19 · 25/25
- Interest coverage-47.8x · 0/25
- Net cash / debtD/A 9% · 20/25
Quality70
- Piotroski F3/9 · 5/25
- Beneish M-2.80 · 25/25
- FCF conversion58% · 15/25
- Margin stabilityσ 4.0% · 25/25
Moat86
- ROIC >12% years12/12 yrs · 25/25
- Median gross margin55.2% · 25/25
- FCF-positive years11/12 yrs · 18/25
- Worst-year net marginworst 8.5% · 18/25
Experience
The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.
- Q2 2026Insiders2 open-market insider purchases~8K shares bought by insiders
- FY2024FinancialBest year on record$3.92B net income
- 2024AcquisitionLululemon Athletica Inc. agreed to acquire the operations and retail locations of its franchise partner in…
- FY2023FinancialPositive free cash flow every year since5-year streak
- 2022MilestoneLululemon became the official outfitter for the Canadian Olympic and Paralympic teams in a deal that will…
- FY2021FinancialRevenue crossed $10B$14.3B for the year
- Jun 29, 2020AcquisitionCapitalizing on a growing trend of people conducting virtual workouts at home instead of going to a gym due to the…
- 2019ProductThe company introduced a streetwear brand called Lab in select stores
- Dec 24, 2018MilestoneLululemon Athletica became a Nasdaq-100 company on December 24, 2018
- FY2016FinancialProfitable every year on record12 consecutive profitable years in our data
- FY2016FinancialRevenue already above $1B$5.40B in first reported year
- 2014MilestoneLululemon opened its first store in Europe, in Covent Garden, London
- 2007IPOThe company made its initial public offering in July 2007, raising $327.6 million by selling 18.2 million shares on…
- 1998FoundedLululemon was founded in 1998 by Chip Wilson in Vancouver, British Columbia
- 1997ProductWilson had been doing yoga and had an idea to make yoga apparel for women using a proprietary skintight…
Achievements
Verifiable track record, straight from the reported numbers.
Strengths & watch-outs
What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.
Strengths
- High gross margin (56.1%)
- Could repay net debt from ~0.8 years of free cash flow
- Altman Z-Score 3.55 — low bankruptcy-risk zone
Watch-outs
- Revenue shrinking 18.1% year over year
- Thin interest coverage (-47.8×)
Qualifications
The basics a company should meet before you research it further. Each check uses the reported numbers.
- Revenue growing — the company sells more than a year ago-18.1% YoY
- Profitable — makes more than it spends$2.82B TTM
- Profit growing — earnings are higher than last year+25.7% YoY
- Generates cash — cash left after running and investing$1.63B TTM
- Debt under control — could handle its obligations~0.5y of cash flow to repay
- Established company — not a micro-cap — lower blow-up risk$10.9B market cap
- Not printing shares — share count not ballooning — you keep your slice-12.8% shares over ~5y
- Proven track record — years of profitability behind it12/12 profitable years
- Financially stable — balance sheet not near distressAltman Z 3.5 — safe
- Pays a dividend — returns cash to shareholdersno data
- Valuation not extreme — price not wildly above earningsP/E 7.7
Peer comparisonlululemon athletica inc. vs 6 largest consumer cyclical peers — cap, P/E, growth and margin side by sideOpen ▾Close ▴
| Company | Market cap | P/E | Revenue growth | Net margin | Profile |
|---|---|---|---|---|---|
| LULU this company | $10.9B | 7.7 | -18.1% | 12.1% | Solid |
| AMZN Amazon.Com Inc | $2.8T | 20.9 | +15.8% | 17.4% | Mixed |
| TSLA Tesla, Inc. | $1.5T | 397.1 | +11.8% | 3.7% | Strong |
| NFLX NetFlix Inc | $292.8B | 21.4 | +16.0% | 28.2% | Solid |
| HD Home Depot, Inc. | $290.4B | 20.4 | -16.0% | 8.7% | Solid |
| DIS The Walt Disney Company | $186.5B | 21.7 | +4.6% | 8.7% | Solid |
| MCD McDonald's Corporation | $166.9B | 18.9 | +6.3% | 31.7% | Strained |
Head-to-head: LULU vs AMZN · LULU vs TSLA · LULU vs NFLX
References
What covering analysts publish about the company — information only, not a recommendation.
Appendix · Financial records
The full statements behind this CV, FY2016–FY2027. For readers who want to check the numbers.
Live data and quarterly detail: stockcv.com/LULU
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Deeper analysis of LULU on PreMarketPriceFigures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $94.50 · market cap $10.9B.