Lululemon Athletica (LULU) AI Stock Analysis

• Market Cap: $22.64B
• Dividend Yield: N/A
• Average Volume (3M): 3.30M
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.97
• Revenue Growth: 9.16%
• EPS Growth: 12.74%
• Country: US
• Employees: 39,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 2.59
• Shares Outstanding: 113,468,080
• 10 Day Avg. Volume: 3,348,035
• 30 Day Avg. Volume: 3,302,220
• PEG Ratio: 1.40
• Price to Book (P/B): 11.74
• Price to Sales (P/S): 4.79
• P/FCF Ratio: 32.06
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 2.18
• Enterprise Value/Gross Profit: 3.68
• Enterprise Value/Ebitda: 7.95
• 1Y Price Target: $185.57
• Price Target Upside: -1.09% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 18
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: $210.00 ▲(11.93% Upside)

Lululemon Athletica's strong financial performance and reasonable valuation are key strengths, supported by international growth prospects. However, challenges in the U.S. market and reduced revenue guidance pose risks. The stock's technical indicators suggest cautious optimism, with potential resistance ahead.

Positive Factors

International Growth

Strong international growth, particularly in China, indicates successful market expansion and diversification, reducing reliance on the U.S. market.

Leadership Consolidation

Consolidating leadership under Maestrini may streamline operations and enhance global strategy execution, supporting long-term growth.

Financial Flexibility

Improved credit terms can provide Lululemon with greater financial flexibility to invest in growth initiatives and navigate economic challenges.

Negative Factors

U.S. Revenue Decline

Declining U.S. revenue poses a risk to overall growth, highlighting potential market saturation or competitive pressures in a key region.

Impact of Tariffs

Increased tariffs can significantly impact profitability, necessitating strategic adjustments to maintain margin stability.

Inventory Levels

Rising inventory levels may lead to increased markdowns and pressure on margins, indicating potential inefficiencies in supply chain management.

Lululemon Athletica Business Overview & Revenue Model

Company Description

lululemon athletica inc., together with its subsidiaries, designs, distributes, and retails athletic apparel and accessories for women and men. It operates in two segments, Company-Operated Stores and Direct to Consumer. The company offers pants, shorts, tops, and jackets for healthy lifestyle and athletic activities, such as yoga, running, and training, as well as other sweaty pursuits. It also provides fitness-related accessories and footwear. The company sells its products through a chain of company-operated stores; outlets and warehouse sales; interactive workout platform; a network of wholesale accounts, such as yoga studios, health clubs, and fitness centers; temporary locations; and license and supply arrangements, as well as directly to consumer through mobile apps and lululemon.com e-commerce website. As of January 30, 2022, it operated 574 company-operated stores under the lululemon brand in the United States, Canada, the People's Republic of China, Australia, the United Kingdom, Japan, New Zealand, Germany, South Korea, Singapore, France, Malaysia, Sweden, Ireland, the Netherlands, Norway, and Switzerland. lululemon athletica inc. was founded in 1998 and is based in Vancouver, Canada.

How the Company Makes Money

Lululemon generates revenue primarily through the sale of its athletic apparel and accessories. The company operates a direct-to-consumer model, which includes both brick-and-mortar stores and a robust e-commerce platform. Key revenue streams include sales from retail locations, online sales, and wholesale partnerships with select retailers. Additionally, Lululemon has introduced a range of experiential offerings, such as fitness classes and events, which help to strengthen customer loyalty and engagement. The company also invests in collaborations and partnerships with fitness influencers and studios, which can enhance brand visibility and drive sales.

Lululemon Athletica Financial Statement Overview

Summary

Lululemon Athletica shows strong financial performance with high profitability margins and efficient operations. The balance sheet is stable with prudent leverage and high returns on equity. However, the decline in free cash flow growth is a concern that needs monitoring.

Income Statement

Lululemon Athletica demonstrates strong financial performance with consistent revenue growth and solid profitability margins. The TTM data shows a Gross Profit Margin of 59.10% and a Net Profit Margin of 16.38%, indicating efficient cost management and profitability. The Revenue Growth Rate of 1.43% in the TTM suggests steady growth, although slightly slower compared to previous periods. Overall, the company maintains robust EBIT and EBITDA margins, reflecting operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable Debt-to-Equity Ratio of 0.40 in the TTM, indicating prudent leverage. The Return on Equity (ROE) is impressive at 42.05%, showcasing effective utilization of shareholder funds to generate profits. The Equity Ratio stands at 58.29%, suggesting a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

Cash flow analysis reveals a mixed picture. While the Operating Cash Flow to Net Income Ratio is healthy at 1.23, indicating strong cash generation relative to net income, the Free Cash Flow Growth Rate shows a decline of 11.20% in the TTM. This suggests potential challenges in maintaining free cash flow levels, although the Free Cash Flow to Net Income Ratio remains solid at 0.61, indicating reasonable cash flow coverage of earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.90B	10.59B	9.62B	8.11B	6.26B	4.40B
Gross Profit	6.44B	6.27B	5.61B	4.49B	3.61B	2.46B
EBITDA	2.99B	2.95B	2.59B	2.02B	1.60B	1.04B
Net Income	1.79B	1.81B	1.55B	854.80M	975.32M	588.91M
Balance Sheet
Total Assets	7.52B	7.60B	7.09B	5.61B	4.94B	4.19B
Cash, Cash Equivalents and Short-Term Investments	1.16B	1.98B	2.24B	1.15B	1.26B	1.15B
Total Debt	1.76B	1.58B	1.40B	1.07B	881.05M	798.68M
Total Liabilities	3.14B	3.28B	2.86B	2.46B	2.20B	1.63B
Stockholders Equity	4.39B	4.32B	4.23B	3.15B	2.74B	2.56B
Cash Flow
Free Cash Flow	1.17B	1.58B	1.64B	327.81M	994.61M	574.11M
Operating Cash Flow	1.91B	2.27B	2.30B	966.46M	1.39B	803.34M
Investing Cash Flow	-851.51M	-798.17M	-654.13M	-569.94M	-427.89M	-695.53M
Financing Cash Flow	-1.48B	-1.65B	-548.83M	-467.49M	-844.99M	-80.79M

Lululemon Athletica Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 187.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LULU, the sentiment is Positive. The current price of 187.62 is above the 20-day moving average (MA) of 176.26, above the 50-day MA of 173.62, and below the 200-day MA of 232.79, indicating a neutral trend. The MACD of 4.01 indicates Negative momentum. The RSI at 62.43 is Neutral, neither overbought nor oversold. The STOCH value of 52.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LULU.

Lululemon Athletica Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ROST	80 Outperform	$57.95B	27.86	37.43%	0.89%	3.71%	0.65%
LULU	80 Outperform	$22.64B	12.48	42.42%	―	9.16%	12.74%
ONON	79 Outperform	$15.35B	58.54	15.38%	―	38.94%	81.82%
URBN	78 Outperform	$6.90B	14.93	19.34%	―	11.09%	51.51%
AEO	77 Outperform	$4.05B	20.61	12.36%	2.09%	-1.15%	-0.98%
GAP	76 Outperform	$9.49B	11.43	25.10%	2.42%	0.29%	3.65%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Lululemon Athletica Corporate Events

Lululemon Appoints André Maestrini as New President

On November 17, 2025, Celeste Burgoyne announced her resignation as President, Americas and Global Guest Innovation at Lululemon, effective December 31, 2025, to pursue opportunities outside the industry. In response, Lululemon appointed André Maestrini as President and Chief Commercial Officer on November 21, 2025. Maestrini, who joined Lululemon in 2021 and significantly expanded its international revenues, will now oversee all regions, stores, and digital channels globally, focusing on market expansion and revenue generation.

Lululemon Updates Credit Agreement for Financial Flexibility

On October 15, 2025, Lululemon Athletica announced entering into the Second Amended and Restated Credit Agreement. This development is expected to impact the company’s financial strategy and operations, potentially enhancing its market position and providing greater financial flexibility.