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LULU

S&P 500
Favorable · 60/100

Lululemon Athletica

Consumer Discretionary
Apparel, Accessories & Luxury Goods

$105.43

5.7%

Updated Today 7:15 PM ET

Price — Past Year

▼ Down 51.1% over the last 12 months

Price 50-day average 200-day averageSource: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$13.26B

P/E

9.26x

Forward P/E (est.)

11.04x

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)

1.9%

Rating Score

60/100

Technical Analysis (Educational)
Research

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 $105.43, below its 50-day average ($134.27) and 200-day average ($167.39). 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 27 it is oversold — selling has been heavy and a bounce is possible.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.

Volatility — ATR. Average True Range is the typical daily move. LULU's is $5.58 (~5.3% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month LULU found buyers near $109.36 (support) and sellers near $136.14 (resistance); its 52-week range is $109.36–$252.24. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 1.4× the 20-day average — heavier than usual, which adds conviction to the move. 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. It updates daily as the price and indicators change.

Business Overview
Research

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 $13.26B.

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.

Revenue Growth
Research

4Y CAGR

15.4%

Revenue moved from $6.26B in 2022 to $11.10B in 2026, a 15.4% 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
Research

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
Research

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
Research

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
Research

P/E

9.26x

P/S

1.26x

P/B

4.1x

EV / EBITDA

4.74x

LULU trades at 9.3x trailing earnings (about 11.0x on estimated forward earnings), 1.3x sales, and 4.1x book value. Reverse-engineering today's price implies the market expects roughly 1.9% long-term free-cash-flow growth. That is an undemanding multiple — potentially cheap if the business is stable.

Metrics vs. Typical Range

Where this stock sits versus what most companies trade at.

TTM P/E
9.3xCheap
Forward P/E
11.0xCheap
P/S ratio
1.3xCheap
Revenue growth
4.2%Weak
EPS growth
-16.1%Weak
Gross margin
56.6%Strong
Net margin
13.0%Strong
ROE
31.3%Strong

Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. 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.

In the Consumer Discretionary sector (48 S&P 500 companies), LULU ranks #15 of 48 by our overall rating. It trades at a discount versus the sector on earnings (9.3x P/E vs. 23.7x median) with a lower return on equity (31.3% vs. 39.2%) and slower revenue growth (4.2% vs. 6.2%).

P/E vs sector

9.3x

median 23.7x

ROE vs sector

31.3%

median 39.2%

Growth vs sector

4.2%

median 6.2%

Sector rank

#15

of 48 by rating

CompanyP/ERev Gr.Rating
LULUThis stock9.3x4.2%Favorable· 60
RL26.1x14.6%Favorable· 65
TPR43.7x14.1%Weak· 38
NKE30x-2.7%Weak· 39
APTV36.9x5.2%Weak· 36
HAS12.9%Weak· 15
MGM66x3.4%Weak· 21
GPC4.8%Weak· 27
Consumer Discretionary median23.7x6.2%54/100

Valuation vs. quality map

sector medianRLTPRNKEAPTVMGMLULUP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Consumer Discretionary companies by sub-industry and size. Sector median is across all 48 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$87.20$156.96

vs. $105.43 today · expected CAGR -4%8%

Metric20262027202820292030
Revenue$11.55B$12.01B$12.49B$12.99B$13.51B
Net income$1.62B$1.68B$1.75B$1.82B$1.89B
EPS$14.91$15.50$16.12$16.77$17.44
Share price (low)$74.54$77.52$80.62$83.84$87.20
Share price (high)$134.17$139.53$145.12$150.92$156.96
CAGR (low–high)-29% / 27%-14% / 15%-9% / 11%-6% / 9%-4% / 8%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your 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
Research

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

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 9.3x earnings, which our model scores Favorable (60/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

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.