Lululemon Athletica (LULU) AI Stock Analysis

• Market Cap: $24.38B
• Dividend Yield: N/A
• Average Volume (3M): 3.15M
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.88
• Revenue Growth: 9.39%
• EPS Growth: 17.28%
• Country: US
• Employees: 39,000
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Apparel - Retail
• EPS (TTM): 2.60
• Shares Outstanding: 114,729,430
• 10 Day Avg. Volume: 3,240,367
• 30 Day Avg. Volume: 3,150,408
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: 3.15
• Enterprise Value/Gross Profit: 5.31
• Enterprise Value/Ebitda: 11.79
• 1Y Price Target: $286.35
• Price Target Upside: 46.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 26

• Rating: 71 Outperform
• Price Target: $222.00 ▲(13.81% Upside)

Lululemon Athletica's overall stock score is driven by strong financial performance and positive earnings call highlights, particularly in international growth and product innovation. However, technical analysis indicates bearish momentum, and valuation concerns persist due to the lack of a dividend yield. Strategic focus on international expansion and product innovation are key strengths, while domestic market challenges and margin pressures are potential risks.

Positive Factors

International Expansion

Lululemon remains underpenetrated internationally, indicating a significant opportunity to scale brand awareness.

Market Share Growth

Lululemon continues to gain share, both on a domestic and global basis.

Product Innovation

Innovation in fabrications and styles, such as the Align No Line pant and the Glow Up collection, has been successful.

Negative Factors

China Growth

China's growth is slowing down, which poses a significant risk to LULU's high-margin region and could impact overall margins negatively.

Tariffs Impact

Tariffs, especially from Vietnam, are expected to be an additional pressure point for LULU, contributing to a potential headwind affecting future quarters.

US Market Trends

US trends remain lackluster, with North America trends remaining weak and clearance activity driving any potential improvement.

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 Athletica generates revenue primarily through the sale of its athletic apparel and accessories. The company's key revenue streams include retail sales from its brick-and-mortar stores, which are strategically located in high-traffic urban areas, and online sales through its e-commerce platform, which provides a convenient shopping experience to a global customer base. Additionally, Lululemon offers a membership program, which contributes to customer loyalty and repeat purchases. The company also engages in community-based marketing and events, such as yoga classes and fitness workshops, to strengthen its brand and drive sales. Strategic partnerships and collaborations with designers and influencers further enhance brand visibility and attract new customers.

Lululemon Athletica Financial Statement Overview

Summary

Lululemon Athletica shows impressive financial performance with strong revenue growth, high profitability, and a solid balance sheet. The company's cash flow generation is robust, supporting its growth initiatives and shareholder returns. Continued focus on managing leverage and sustaining margins will be critical in navigating future challenges.

Income Statement

Lululemon Athletica demonstrates strong financial performance with robust revenue growth over the years, particularly from $4.40 billion in 2021 to $10.75 billion TTM (Trailing-Twelve-Months) in 2025. The company maintains high gross profit margins consistently above 50%, reaching approximately 59.4% in TTM. Net profit margins have also been solid, around 16.8% TTM, indicating strong profitability. EBIT and EBITDA margins are healthy, reflecting efficient operations.

Balance Sheet

The balance sheet reflects a strong equity base with a debt-to-equity ratio of approximately 0.40 TTM, showcasing prudent leverage management. The equity ratio is around 63.9% TTM, indicating a stable financial structure. Return on equity is impressive at 42.1% TTM, reflecting effective utilization of shareholders' funds. The company has been able to manage its liabilities while growing its equity.

Cash Flow

Lululemon Athletica exhibits robust cash flow generation with consistent growth in free cash flow, demonstrating financial health and operational efficiency. The operating cash flow to net income ratio is strong, indicating effective conversion of net income to cash. The free cash flow to net income ratio also supports the company's ability to generate cash from operations. Free cash flow growth has been positive, reinforcing the company's capacity for reinvestment and returning value to shareholders.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	10.59B	9.62B	8.11B	6.26B	4.40B
Gross Profit	6.27B	5.61B	4.49B	3.61B	2.46B
EBITDA	3.02B	2.59B	2.02B	1.60B	1.00B
Net Income	1.81B	1.55B	854.80M	975.32M	588.91M
Balance Sheet
Total Assets	7.60B	7.09B	5.61B	4.94B	4.19B
Cash, Cash Equivalents and Short-Term Investments	1.98B	2.24B	1.15B	1.26B	1.15B
Total Debt	1.58B	1.40B	1.07B	881.05M	798.68M
Total Liabilities	3.28B	2.86B	2.46B	2.20B	1.63B
Stockholders Equity	4.32B	4.23B	3.15B	2.74B	2.56B
Cash Flow
Free Cash Flow	1.58B	1.64B	327.81M	994.61M	574.11M
Operating Cash Flow	2.27B	2.30B	966.46M	1.39B	803.34M
Investing Cash Flow	-798.17M	-654.13M	-569.94M	-427.89M	-695.53M
Financing Cash Flow	-1.65B	-548.83M	-467.49M	-844.99M	-80.79M

Lululemon Athletica Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 195.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LULU, the sentiment is Negative. The current price of 195.07 is below the 20-day moving average (MA) of 219.15, below the 50-day MA of 247.03, and below the 200-day MA of 312.87, indicating a bearish trend. The MACD of -13.30 indicates Positive momentum. The RSI at 24.91 is Positive, neither overbought nor oversold. The STOCH value of 10.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LULU.

Lululemon Athletica Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
URBN	79 Outperform	$6.98B	16.72	19.55%	―	8.38%	52.18%
GAP	73 Outperform	$7.27B	8.49	29.16%	3.23%	1.07%	28.03%
AEO	72 Outperform	$2.08B	13.59	12.19%	4.16%	-0.95%	-10.51%
LULU	71 Outperform	$24.38B	13.41	42.49%	―	9.39%	17.28%
ONON	70 Neutral	$15.27B	64.78	15.84%	―	34.75%	60.65%
Sector *	67 Neutral	¥265.25B	13.27	6.55%	2.53%	5.21%	-14.18%
BIRD	51 Neutral	$77.20M	―	-72.29%	―	-23.63%	41.36%

Lululemon Athletica Corporate Events

Lululemon Elects Directors and Ratifies Auditor

At Lululemon Athletica‘s 2025 Annual Meeting of Shareholders on June 11, 2025, several key decisions were made. Three Class III directors were elected, PricewaterhouseCoopers LLP was ratified as the independent public accounting firm for the fiscal year ending February 1, 2026, and executive compensation was approved. However, a shareholder proposal regarding a report on discrimination risks related to charitable partnerships was not approved.

The most recent analyst rating on (LULU) stock is a Buy with a $420.00 price target. To see the full list of analyst forecasts on Lululemon Athletica stock, see the LULU Stock Forecast page.