Fundamental analysis · SEC EDGAR · TTM through 03/05/2026

Fundamental analysis of lululemon Athletica Inc.

LULU · Nasdaq · Consumer

Fundamental quality

ATTRACTIVE

85

out of 100

lululemon Athletica Inc. grows profitably: it increases revenue at double digits (19.5% a year) without giving up profitability (net margin 13%). On fundamental quality it scores 85 out of 100, profiling it as a company with solid fundamentals. Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Lululemon turned yoga wear into a global premium brand and created the 'athleisure' category. It sells direct to consumer (own stores and online), no middlemen, giving it luxury-level margins for an apparel company.

What will shape its future

  • Brand strength against the wave of imitators (Alo, Vuori) chasing its customer.
  • International growth, above all in China, its big bet.
  • Discretionary spending: $100 leggings are among the first cuts when times get tough.

Breakdown by area

I.Growth
84

EPS growth: 21.2% · Revenue growth: 19.5%

II.Profitability
83

Net margin: 13% · ROE: 30.2% · ROIC: 43.5%

III.Financial health
87

Net debt/EBITDA: -0.59x · FCF: 11.4%

Source: SEC EDGAR · TTM through 03/05/2026

The score combines growth, profitability and financial strength, and here its pillars hold up evenly.

Versus its sector

Percentile against the other 98 Consumer companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 86%
ROEbeats 72%
Growthbeats 82%
Cash generationbeats 76%
Less debtbeats 86%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

lululemon Athletica Inc. strengths

  • Outstanding return on equity (ROE of 30.2%): it puts shareholder capital to good use.
  • High gross margin (55.7%), pointing to pricing power.
  • Revenue growing (19.5% annualized).
  • Growing earnings per share (21.2% annualized).

lululemon Athletica Inc. risks and weaknesses

  • No clear weaknesses in the recent fundamentals, though the system doesn't assess qualitative factors (competition, regulation, management).

lululemon Athletica Inc. historical evolution

YearRevenueNet incomeFree cash flowNet debt
20214,402589574-1,151
20226,257975995-1,260
20238,111855328-1,155
20249,6191,5501,644-2,244
202510,5881,8151,583-1,984
202611,1031,579922-1,807

Between 2021 and 2026, revenue went from $4,402M to $11,103M (+152%) and net income went from $589M to $1,579M (+168%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the quarter ended May 3, 2026, versus the quarter ended May 4, 2025 (SEC filings):

  • Revenue+4.3%
  • Net income-38%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

This company doesn't pay a dividend: it reinvests all its earnings back into the business.

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Is lululemon Athletica Inc. cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is lululemon Athletica Inc. a good company to invest in?

In terms of business quality, lululemon Athletica Inc. scores 85 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is lululemon Athletica Inc. a profitable company?

Yes. lululemon Athletica Inc. shows a net margin of 13% and an ROE of 30.2%, a sign of a profitable business.

Does lululemon Athletica Inc. have a lot of debt?

No. lululemon Athletica Inc. has a net cash position: more cash than debt.

Is lululemon Athletica Inc. growing?

Its revenue has grown 19.5% annualized in recent years and its earnings per share 21.2%, and without interruption since 2021.

Does lululemon Athletica Inc. generate cash?

Yes. It converts about 11.4% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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