LULU Stock Analysis: Lululemon Athletica | NASDAQ
Apparel Retail | NASDAQ, USA | Market Cap: 10.946m USD | 12M Return: -40.7% | US5500211090 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 444M
EPS Trend: -2.0%
Qual. Beats: 1
Rev. Trend: 96.0%
Qual. Beats: -1
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Lululemon Athletica Inc. (NASDAQ: LULU) is a Canadian-headquartered apparel company that designs, distributes, and retails technical athletic apparel, footwear, and accessories for women and men under a single brand, lululemon. It is classified within the GICS Consumer Discretionary sector, specifically the Apparel, Accessories & Luxury Goods sub-industry, and trades as a large-cap stock on NASDAQ following its 2007 IPO.
The companys product range centers on technical apparel for activities such as yoga, running, and training, including pants, shorts, tops, and jackets, alongside fitness-inspired accessories. Its offering sits at the intersection of the athletic apparel and athleisure categories, where brands typically compete on technical fabric performance, fit, and premium pricing.
Distribution is built around a predominantly direct-to-consumer model, encompassing company-operated retail stores, seasonal and pop-up locations, university campus retailers, yoga and fitness studios, outlet stores, and its e-commerce website. The company also operates Like New, a re-commerce program for secondhand lululemon products, reflecting a growing circular-economy element within the apparel sector.
Lululemon was founded in 1998 and remains based in Vancouver, Canada. Its geographic footprint includes the United States, Canada, Mexico, China, Hong Kong, Taiwan, Macau, and Greece, with additional international operations beyond these markets.
- China expansion accelerates as international revenue outpaces domestic growth
- Mens apparel segment drives double-digit comparable sales growth
- Competition from Alo Yoga and Nike pressures gross margins
| Net Income: 1.42b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.16 > 0.02 and ΔFCF/TA 0.44 > 1.0 |
| NWC/Revenue: 19.33% < 20% (prev 18.08%; Δ 1.25% < -1%) |
| CFO/TA 0.23 > 3% & CFO 1.98b > Net Income 1.42b |
| Net Debt (751.4m) to EBITDA (2.56b): 0.29 < 3 |
| Current Ratio: 2.19 > 1.5 & < 3 |
| Outstanding Shares: last quarter (112.9m) vs 12m ago -5.65% < -2% |
| Gross Margin: 56.11% > 18% (prev 59.10%; Δ -2.99% > 0.5%) |
| Asset Turnover: 138.6% > 50% (prev 144.9%; Δ -6.33% > 0%) |
| Interest Coverage Ratio: 171.4 > 6 (EBIT TTM 2.02b / Interest Expense TTM 11.8m) |
| A: 0.25 (Total Current Assets 3.95b - Total Current Liabilities 1.80b) / Total Assets 8.48b |
| B: 0.51 (Retained Earnings 4.36b / Total Assets 8.48b) |
| C: 0.25 (EBIT TTM 2.02b / Avg Total Assets 8.00b) |
| D: 1.30 (Book Value of Equity 4.79b / Total Liabilities 3.69b) |
| Altman-Z'' = 6.39 = AAA |
| DSRI: 0.36 (Receivables 171.2m/462.5m, Revenue 11.1b/10.9b) |
| GMI: 1.05 (GM 59.10% / 56.11%) |
| AQI: 1.02 (AQ_t 0.06 / AQ_t-1 0.06) |
| SGI: 1.02 (Revenue 11.1b / 10.9b) |
| TATA: -0.07 (NI 1.42b - CFO 1.98b) / TA 8.48b) |
| Beneish M = -3.48 (Cap -4..+1) = AA |
As of October 16, 2026, the stock is trading at USD 99.09 with a total of 4,767,251 shares traded. Over the past week, the price has changed by +6.92%, over one month by +0.73%, over three months by -15.61% and over the past year by -40.70%.
Current recommended Stop Loss: 93.80 (which is 5.3% or 1.5 ATR below the current price).
Lululemon Athletica has received a consensus analysts rating of 2.80. Therefore, it is recommended to hold LULU.
- StrongBuy: 1
- Buy: 0
- Hold: 29
- Sell: 1
- StrongSell: 4
| Analysts Target Price | 104.9 | 5.9% |
P/E Trailing = 7.7778
P/E Forward = 10.7411
P/S = 0.9866
P/B = 2.3969
P/EG = 1.1303
Revenue TTM = 11.1b USD
EBIT TTM = 2.02b USD
EBITDA TTM = 2.56b USD
Long Term Debt = 1.77b USD (estimated: total debt 2.14b - short term 366.6m)
Short Term Debt = 366.6m USD (from shortTermDebt, last quarter)
Debt = 2.14b USD (from shortLongTermDebtTotal, last quarter) (leases 2.14b already included)
Net Debt = 751.4m USD (calculated: Debt 2.14b - CCE 1.39b)
Enterprise Value = 11.7b USD (10.9b + Debt 2.14b - CCE 1.39b)
Interest Coverage Ratio = 171.4 (Ebit TTM 2.02b / Interest Expense TTM 11.8m)
EV/FCF = 8.64x (Enterprise Value 11.7b / FCF TTM 1.35b)
FCF Yield = 11.58% (FCF TTM 1.35b / Enterprise Value 11.7b)
FCF Margin = 12.21% (FCF TTM 1.35b / Revenue TTM 11.1b)
Net Margin = 12.78% (Net Income TTM 1.42b / Revenue TTM 11.1b)
Gross Margin = 56.11% ((Revenue TTM 11.1b - Cost of Revenue TTM 4.87b) / Revenue TTM)
Gross Margin QoQ = 60.52% (prev 54.17%)
Tobins Q-Ratio = 1.38 (Enterprise Value 11.7b / Total Assets 8.48b)
Interest Expense / Debt = 0.55% (Interest Expense 11.8m / Debt 2.14b)
Taxrate = 29.40% (590.5m / 2.01b)
NOPAT = 1.43b (EBIT 2.02b * (1 - 29.40%))
Current Ratio = 2.19 (Total Current Assets 3.95b / Total Current Liabilities 1.80b)
Debt / Equity = 0.45 (Debt 2.14b / totalStockholderEquity, last quarter 4.79b)
Debt / EBITDA = 0.29 (Net Debt 751.4m / EBITDA 2.56b)
Debt / FCF = 0.55 (Net Debt 751.4m / FCF TTM 1.35b)
Total Stockholder Equity = 4.77b (last 4 quarters mean from totalStockholderEquity)
RoA = 17.72% (Net Income 1.42b / Total Assets 8.48b)
RoE = 29.73% (Net Income TTM 1.42b / Total Stockholder Equity 4.77b)
RoCE = 30.87% (EBIT 2.02b / Capital Employed (Equity 4.77b + L.T.Debt 1.77b))
RoIC = 21.96% (NOPAT 1.43b / Invested Capital 6.49b)
WACC = 8.09% (E(10.9b)/V(13.1b) * Re(9.60%) + D(2.14b)/V(13.1b) * Rd(0.55%) * (1-Tc(0.29)))
Discount Rate = 9.60% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -97.55 | Cagr: -4.87%
[DCF] Terminal Value 77.97% ; FCFF base≈1.28b ; Y1≈1.47b ; Y5≈2.16b
[DCF] Fair Price = 300.6 (EV 32.5b - Net Debt 751.4m = Equity 31.7b / Shares 105.6m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -1.99 | EPS CAGR: -0.19% | SUE: 2.11 | # QB: 1
Revenue Correlation: 95.96 | Revenue CAGR: 7.30% | SUE: -1.04 | # QB: -1
EPS current Quarter (2026-10-31): EPS=1.04 | Chg30d=+1.39% | Revisions=-82% | Analysts=19
EPS current Year (2027-01-31): EPS=9.63 | Chg30d=-0.67% | Revisions=-86% | GrowthEPS=-27.4% | GrowthRev=-5.8%
EPS next Year (2028-01-31): EPS=8.64 | Chg30d=-4.57% | Revisions=-87% | GrowthEPS=-10.3% | GrowthRev=-1.2%
[Analyst] Revisions Ratio: -95% (up=0, down=53)