lululemon athletica inc.LULU
NasdaqGS•Consumer Cyclical•Apparel Retail
lululemon athletica inc., together with its subsidiaries, designs, distributes, and retails technical athletic apparel, footwear, and accessories for women and men under the lululemon brand in the United States, Canada, Mexico, China Mainland, Hong Kong, Taiwan, Macau, and internationally. It offers pants, shorts, tops, and jackets for athletic activities, such as yoga, running, training, and other activities. The company also provides fitness-inspired accessories. It sells its products through company-operated stores; seasonal stores, pop-ups, university campus retailers, and yoga and fitness studios; outlets; Like New, a re-commerce program; and its e-commerce website. The company was founded in 1998 and is based in Vancouver, Canada.
lululemon athletica inc. (LULU) reported trailing twelve months revenue of $11.20B as of May 2026, a 4.2% increase year-over-year. Quarterly revenue reached $2.47B, reflecting continued top-line momentum.
lululemon athletica inc. generated $1.46B in TTM net income, with quarterly EBITDA of $412.28M. The operating margin contracted from 18.5% to 11.2%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (11.2%) and net margin (7.9%) indicates tight cost control with minimal non-operating drag. Net margin has narrowed from 13.3% a year ago, reflecting increased costs or interest expense.
LULU trades at a P/E of 10.6x (below the broader market average) and a P/S of 1.4x. The price-to-book ratio of 3.2x reflects a moderate premium to book value.
The company generated $87.06M in free cash flow over the trailing twelve months, a 132.1% increase year-over-year, indicating cash generation ability. The balance sheet shows $8.53B in total assets with no in long-term debt against $4.83B in stockholders equity. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~20.2% on average, but show some variability — pricing power may be sensitive to market conditions.
Consistently high ROE averaging 38.7% suggests a durable competitive advantage and efficient capital allocation.
7 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
TTM revenue has grown consistently (7 of 7 quarters up), with ~12.2% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Operating margins dropped 21.4% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.
FCF consistently trails net income (avg 0.6x) — earnings may be inflated by non-cash items or aggressive accounting.
Limited debt-to-equity data available.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 7.5% — net buybacks are reducing shares outstanding and boosting per-share value.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation