LULU Lululemon Athletica
$97.24
▼ 1.9%Updated Oct 16, 2:25 PM ET
Report Card
LULU at a glance — five pillars scored 0–100 from real filed financials.
How the 0–100 rating is calculatedOverall: Favorable · 60/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
Price — Past Year
▼ Down 51.1% in the year to Jul 6, 2026
Key Metrics
Market Cap
$14.05B
P/E
8.06x
Forward P/E (est.)
9.6x
ROE
31.3%
Revenue Growth
4.2%
EPS Growth
-16.1%
Profit Margin
13.0%
FCF Yield
9.1%
Debt / Equity
0x
ROIC
36.0%
Interest Coverage
—
Current Ratio
2.23x
Dividend Yield
—
Implied Growth (rev. DCF)
2.3%
Rating Score
60/100
Business Overview
Lululemon Athletica (LULU) is a large-cap company in the Apparel, Accessories & Luxury Goods industry, part of the Consumer Discretionary sector of the S&P 500, with a market value around $14.05B.
In its latest reported year it generated about $11.10B in revenue and $1.58B in net profit.
Our model rates LULU Favorable (60/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Economic Moat
Evidence of durable competitive advantage in the filed financials (9 years of history).
Profit margins and economic moats, explainedThe filed history looks like a business competitors struggle to attack: high and steady margins, revenue that grows through cycles, and strong returns on capital.
58.0% average over the last 3 years
±1.8 pts around 56.3% across 9 years
grew in 8 of the last 8 year-over-year periods
positive in 9 of 9 years
36.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical Analysis (Educational)
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what LULU's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. LULU trades near $97.24, below its 50-day average ($125.08) and 200-day average ($164.71). Price below both averages is a downtrend — momentum is against buyers for now.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 46 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. LULU's is $4.53 (~4.7% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. In the month to Jul 6, 2026, LULU found buyers near $104.44 (support) and sellers near $129.00 (resistance); its 52-week range then was $104.44–$252.24. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.5× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. The indicators were last computed on Jul 6, 2026; the price is current.
Revenue Growth
4Y CAGR
15.4%
Revenue moved from $2.65B in 2018 to $11.10B in 2026, a 19.6% compound annual growth rate. The most recent year was roughly flat (4.2%) year over year. Slower, mature growth is common for established businesses.
Profitability
Gross Margin
56.6%
Operating Margin
19.9%
Net Margin
14.2%
ROE
31.3%
Lululemon Athletica keeps about 13.0% of each sales dollar as net profit, with a 56.6% gross margin and 19.9% operating margin. Return on equity is 31.3% and return on invested capital about 36.0%. Margins are moderate — typical of a competitive but profitable business.
Debt Analysis
Total Debt
—
Net Debt
—
Net Debt / EBITDA
—
Debt / Equity
0x
Leverage: debt-to-equity is 0.0x, with a current ratio of 2.2x. That is a conservative balance sheet — a cushion in downturns.
Cash Flow Analysis
Operating CF
$1.60B
Free Cash Flow
$921.67M
FCF Margin
8.3%
In the latest year Lululemon Athletica produced about $1.60B of operating cash flow and $921.67M of free cash flow after capital spending. That is a free-cash-flow yield of about 9.1% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
Valuation Analysis
P/E
8.06x
P/S
1.26x
P/B
3.56x
EV / EBITDA
—
LULU trades at 8.1x trailing earnings (about 9.6x on estimated forward earnings), 1.3x sales, and 3.6x book value. Reverse-engineering today's price implies the market expects roughly 2.3% long-term free-cash-flow growth. That is an undemanding multiple — potentially cheap if the business is stable.
DCF Fair Value (Educational)
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
How this DCF estimate is calculatedDCF fair value / share
$147.76
Current price
$97.24
Starting FCF (latest 10-K)
$921.67M
Growth, years 1–5
4.2%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Metrics vs. Sector Range
Where LULU sits versus the Consumer Discretionary companies we cover.
Bands show the middle half (25th–75th percentile) of the 85 Consumer Discretionary companies in our coverage that have fundamentals data — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
Sector Peer Comparison
How LULU stacks up against its Consumer Discretionary peers — valuation, profitability, and growth versus the sector median.
Among the 85 rated Consumer Discretionary companies we cover, LULU ranks #20 by our overall rating. It trades at a discount versus the sector on earnings (8.1x P/E vs. 24.6x median) with a higher return on equity (31.3% vs. 26.2%) and slower revenue growth (4.2% vs. 6.8%).
P/E vs sector
8.1x
median 24.6x
ROE vs sector
31.3%
median 26.2%
Growth vs sector
4.2%
median 6.8%
Sector rank
#20
of 85 rated
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Consumer Discretionary companies by sub-industry and size, preferring ones with full data. Sector medians and rank use the 85 rated companies among the 158 Consumer Discretionary stocks we cover. Educational, not a recommendation.
5-Year Projection Model
Project revenue → earnings → price. Edit the assumptions to build your own case.
What drives this projection, and its limits2030 scenario price range (Base Case)
$65.42 – $104.68
vs. $97.24 today · implied CAGR -8% – 1%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $11.55B | $12.01B | $12.49B | $12.99B | $13.51B |
| Net income | $1.62B | $1.68B | $1.75B | $1.82B | $1.89B |
| EPS | $11.18 | $11.63 | $12.10 | $12.58 | $13.08 |
| Share price (low) | $55.92 | $58.16 | $60.49 | $62.91 | $65.42 |
| Share price (high) | $89.48 | $93.06 | $96.78 | $100.65 | $104.68 |
| CAGR (low–high) | -42% / -8% | -23% / -2% | -15% / -0% | -10% / 1% | -8% / 1% |
Educational scenario model, not a forecast or investment advice. It starts from the latest annual revenue in SEC filings. By default, growth is trailing revenue growth (held between 3% and 45% a year), the net margin is the latest one (held between 3% and 50%, so a loss-making company is modeled with a small profit), and the Base case P/E runs from 60% to 100% of today's. Carrying recent growth forward five years can miss badly in either direction. Outputs are only as good as the assumptions.
Bull Case
The case for LULU:
- Strong return on equity (31.3%) shows capital is put to work well.
- Healthy free-cash-flow yield (~9.1%) funds buybacks and dividends.
- A conservative balance sheet (debt/equity 0.0x) lowers risk.
- Our model's overall read is Favorable (60/100).
Bear Case
The case against LULU:
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
Investment Thesis
On balance, the fundamentals screen favourably: Lululemon Athletica is a large-cap consumer discretionary business growing at a mature pace, with solid profitability, and a sound balance sheet. It trades at 8.1x earnings, which our model scores Favorable (60/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Latest SEC Filings
LULU's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen. How to read a 10-K
In the Idea Lab
LULU — frequently asked questions
Is LULU a good stock to buy?
We don't give buy or sell advice. Our model rates Lululemon Athletica Favorable (60/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is LULU's rating on The Stocks School?
Lululemon Athletica currently scores 60/100 (Favorable) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does LULU's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Lululemon Athletica's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for LULU calculated?
It's a scenario model. It starts from the latest annual revenue and net margin in SEC filings, grows revenue at an assumed rate (trailing revenue growth by default), and applies a P/E range built around today's multiple to show the resulting share-price range. When a stock has no growth or P/E data, the starting values are placeholders. It's a tool for thinking, not a prediction.
Is this LULU analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell LULU. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.