lululemon athletica inc.LULU
NasdaqGS•Consumer Cyclical•Apparel Retail
Understand cash generation quality and how management allocates capital.
Free cash flow was $959.67M in the latest quarter (17.7% decrease YoY). FCF margin is 8.6%. Shares outstanding declined by 2.3% year-over-year, indicating buybacks (returning capital to shareholders). Free cash flow is the lifeblood of a business — it funds dividends, buybacks, debt reduction, and reinvestment without relying on external capital.
Free cash flow, earnings quality, and capital allocation