lululemon athletica inc.

LULU
About the company

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, Hong Kong, Taiwan, Macau, Greece, 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.

Country: CanadaPrice: $96.87Market Cap: $10.7B

Investment snapshot

63%positive consensus
Scored 42d ago

Positive

9

BUY / PASS

Neutral / negative

3 / 3

NEUTRAL / FAIL

Median fair value

$163.77

+69.1% vs price

Models with upside

11 / 16

Positive margin of safety

Strongest signal

LULU undervalued: all 11 models price fair value above $96.87 (median $163.77)

Key risk

9 of 11 flag LULU's debt & leverage — Munger, Templeton, Marks +6 more

Framework analysis

VerdictMeaning
BUYPositive purchase signal: the framework's buy requirements are met.
PASSThe company clears the framework's checklist or screen, but the framework does not produce a buy signal. For valuation frameworks this often means margin of safety is missing, insufficient, or unavailable; some screen-only frameworks have no intrinsic-value BUY state.
NEUTRALNeither a positive nor negative conclusion. It does not mean to hold an existing position.
FAILThe company does not clear the framework's requirements.
RankedRanked strategies do not use PASS: selected cohort is BUY, outside the cohort is FAIL, and unranked is NEUTRAL.
Scored from 10-K42d ago
MetricMunger

Quality Focus

Sleep

Scale Economies Shared

Templeton

Global Bargain Hunter

Marks

Risk-Aware Value

Akre

Three-Legged Stool

Pabrai

Dhandho Framework

Ackman

Activist Value

Dreman

Contrarian Value

Piotroski

F-Score

Greenblatt

Magic Formula

Lynch

GARP

Graham

Defensive Value

Buffett

Quality Compounder

O'Shaughnessy

Systematic Factor Composite

Schloss

Asset-Value Discipline

Neff

Low-P/E Total Return

VerdictFAILBUYPASSBUYPASSBUYNEUTRALPASSPASSBUY · Rank #72 (Top 2.2%)FAILPASSPASSNEUTRALNEUTRALFAIL
Score
Analysis
Intrinsic ValueN/AN/AN/AN/AN/A
Margin of Safety+35.7%N/A+44.5%+21.7%+79.8%+63.1%+30.6%+52.9%N/A+40.8%+69.7%+16.0%+34.5%N/AN/AN/A
Data As Of10-K (2026-08-19)10-K (2026-08-19)10-K (2026-08-18)10-K (2026-08-18)10-K (2026-08-18)10-K (2026-08-18)10-K (2026-08-18)10-K (2026-08-18)10-K (2026-08-18)10-K (2026-08-18)10-K (2026-08-18)10-K (2026-08-18)10-K (2026-08-18)10-K (2026-08-25)10-K (2026-08-24)10-K (2026-08-24)

Where It Passes

  • Valuation models100% pass✓ 11▾

    LULU undervalued: all 11 models price fair value above $96.87 (median $163.77)

    Munger fair value$150.75
    ✓Munger+35.7% margin vs $96.87
    Templeton fair value$174.64
    ✓Templeton+44.5% margin vs $96.87
    Marks fair value$123.70
    ✓Marks+21.7% margin vs $96.87
    Akre fair value$479.88
    ✓Akre+79.8% margin vs $96.87
    Pabrai fair value$262.56
    ✓Pabrai+63.1% margin vs $96.87
    Ackman fair value$139.65
    ✓Ackman+30.6% margin vs $96.87
    Dreman fair value$205.80
    ✓Dreman+52.9% margin vs $96.87
    Greenblatt fair value$163.77
    ✓Greenblatt+40.8% margin vs $96.87
    Lynch fair value$319.92
    ✓Lynch+69.7% margin vs $96.87
    Graham fair value$115.29
    ✓Graham+16.0% margin vs $96.87
    Buffett fair value$147.97
    ✓Buffett+34.5% margin vs $96.87
  • Verdicts77% pass✓ 10✗ 3▾

    Split decision: 6 PASS · 3 FAIL · 3 BUY · 3 NEUTRAL

    Overall verdict
    ✗MungerFAIL (1/4)✓SleepBUY (5/6)✓TempletonPASS (4/8)✓MarksBUY (4/5)✓AkrePASS (3/6)✓PabraiBUY (3/3)•AckmanNEUTRAL (6/9)✓DremanPASS (5/11)✓PiotroskiPASS (F-Score 4)✓GreenblattRank #72✗LynchFAIL (3/7)✓GrahamPASS (4/9)✓BuffettPASS (5/9)•OshaughnessyNEUTRAL (Not ranked)•SchlossNEUTRAL (4/7)✗NeffFAIL (3/6)
  • Cash Flow70% pass✓ 9✗ 3▾

    7 of 10 pass — Dreman, Lynch and Oshaughnessy object

    Positive Operating Cash Flow frequency20/20 years positive
    ✓SleepPositive OCF in >= 70% of available years
    FCF Positive19/19 years FCF positive
    ✓MarksPositive FCF in majority of recent years
    P/E or FCF YieldP/E=8.7x, FCF Yield=7.0%
    ✓PabraiP/E < 15 or FCF Yield > 10%
    (OCF - CapEx) / Market Cap7.1%
    ✓Ackman>= 4%
    Price / FCF per Share14.0x
    ✓Ackman<= 25
    Price / (CFO / Shares)8.0x
    ✗Dreman< 8x
    Operating Cash Flow$1.6B
    ✓PiotroskiCFO > 0
    (CFO / Total Assets) vs ROACFO/Assets=18.95%, ROA=18.67%
    ✓PiotroskiCFO/Assets > ROA
    FCF Positive and Growing$921.7M
    ✗LynchPositive and growing
    Free Cash Flow Proxy$1.4B
    ✓BuffettPositive and growing
    (Operating cash flow - capex) / market capitalization+8.59%; #826/4487 (top 18.4%)
    ✗OshaughnessyTop 10% of eligible cross-section
    Operating Cash Flow - Capital Expenditures$921.7M
    ✓Neff> $0 (app proxy for a strong fundamental case)
  • Efficiency63% pass✓ 7✗ 4▾

    5 of 8 pass — Munger, Akre and Piotroski object

    Return on Invested Capital
    ✗Munger> 15%
    ROIC (5-year)4/4 years above 12% (latest 35.2%)
    ✓SleepROIC > 12% in a majority of years
    ROIC (high and growing)7/7 years ROIC > 15% (latest: 35.2%)
    ✓AkreROIC > 15% for 3+ years
    Reinvestment Rate x ROIC
    ✗AkreReinvestment Rate * ROIC > 10%
    Current Assets / Current Liabilities2.26
    ✓Dreman> 1.5
    Current Ratio Change YoY2.26 -> 2.26
    ✗PiotroskiIncreased YoY
    Revenue / Total Assets Change YoY1.31x -> 1.31x
    ✗PiotroskiImproved YoY
    EBIT / (NWC + Net Fixed Assets)50.1%
    ✓Greenblatt> 25%
    Current Ratio2.26
    ✓Graham>= 2.0
    ROIC (3-5 yr avg)38.5%
    ✓Buffett> 10%
    ROIC - WACC+28.5%
    ✓BuffettPositive (WACC = 10%)
  • Profitability60% pass✓ 20✗ 10▾

    9 of 15 pass — Sleep, Templeton, Piotroski +3 more object

    Revenue growth vs. gross and operating margin trendgross margin 59.2% -> 56.6%, operating margin 23.7% -> 19.9%
    ✗SleepRevenue rising; gross margin flat or falling; operating margin holding
    5-Year EPS CAGR12.1% CAGR over 5 years
    ✓Templeton> 0% (5-year EPS CAGR)
    Operating Margin Trend23.7% (2024) -> 19.9% (2026)
    ✗TempletonNon-negative operating-margin trend over 3 years
    Discount to Intrinsic Value43.8% (IV=$205.80 vs Price=$115.74)
    ✓Marks>= 20% below intrinsic value
    Positive Net Income Frequency22/22 years positive
    ✓MarksPositive net income in >= 7 of last 10 years
    Return on Equity35.2% (3-yr avg)
    ✓AkreROE > 20% (3-year avg)
    Margin of SafetyP/E=8.7x, P/B=2.6x
    ✓PabraiP/B < 1.5 or P/E < 15
    Operating Income / Revenue19.9%
    ✓Ackman>= 15%
    Net Income / Shareholders Equity31.8%
    ✓Ackman>= 15%
    Pre-Tax Income / Revenue20.2%
    ✓Dreman>= 8%
    Net Income / Shareholders' Equity31.8%
    ✓Dreman> 12%
    Net Income / Total Assets18.67%
    ✓PiotroskiROA > 0
    ROA Change YoY18.67% -> 18.67% (delta: +0.00%)
    ✗PiotroskiCurrent ROA > Prior ROA
    (CFO / Total Assets) vs ROACFO/Assets=18.95%, ROA=18.67%
    ✓PiotroskiCFO/Assets > ROA
    Gross Margin Change YoY56.6% -> 56.6%
    ✗PiotroskiImproved YoY
    EBIT / Enterprise Value16.8%
    ✓Greenblatt> 10%
    Earnings Yield + ROC AssessmentEY=16.8%, ROC=50.1%
    ✓GreenblattBoth EY > 10% and ROC > 25%
    3-5 Year EPS CAGR12.1%
    ✓Lynch15-30% (Fast Grower); > 0% to pass
    ROE31.8%
    ✓Lynch> 15%
    Positive EPS (10 years)21/23 years positive
    ✗GrahamPositive EPS every year for 10 years
    EPS Growth (3-yr avg, 10-yr window)
    ✗Graham>= 33% growth
    Net Income Positive (10+ years)22/23 years positive
    ✗BuffettPositive every year for 10+ years
    ROE (5-yr avg)33.9%
    ✓Buffett> 15% (5-yr avg)
    Operating Margin (10-yr trend)19.9% (latest)
    ✓BuffettStable or rising over 10 years
    Free Cash Flow Proxy$1.4B
    ✓BuffettPositive and growing
    Earnings Variance (10-yr CoV)
    ✗BuffettCoV < 0.3
    Retained Earnings Effectiveness-1.36x
    ✗Buffett$1 retained -> > $1 market value created
    Net income / market capitalization+14.73%; #349/6251 (top 5.6%)
    ✓OshaughnessyTop 10% of eligible cross-section
    Positive Diluted-EPS Years10/10 years positive
    ✓Schloss>= 70% positive over 5-10 observed years (app rule)
    3-5 Year Diluted EPS CAGR24.1% over 5 years
    ✗Neff7%-20% annualized

Where It Falls Short

  • Debt & Leverage18% pass✓ 4✗ 10▾

    9 of 11 flag LULU's debt & leverage — Munger, Templeton, Marks +6 more

    Total Debt / Shareholders' Equity0.00x
    ✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗Dreman< 0.8✓SchlossD/E < 1.00x
    Debt Levels
    ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3
    Interest Coverage & Debt/EBITDAIC=2150.4x, D/EBITDA=N/A
    ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x
    Total Debt / Shareholders Equity
    ✗Ackman<= 1.0
    Current Assets / Current Liabilities2.26
    ✓Dreman> 1.5✓SchlossCurrent ratio >= 1.50x (app cutoff)
    LT Debt / Total Assets Change0.00% -> 0.00%
    ✓PiotroskiDecreased YoY
    Total Debt / Equity
    ✗Lynch< 0.33
    Cash - Long-term Debt
    ✗LynchPositive preferred
    LT Debt vs Net Current Assets
    ✗GrahamLT Debt <= Net Current Assets
    Debt/Equity & Interest Coverage
    ✗BuffettD/E < 0.5 AND Interest Coverage > 5x
  • Growth25% pass✓ 5✗ 8▾

    6 of 8 flag LULU's growth — Sleep, Ackman, Dreman +3 more

    Revenue growth vs. gross and operating margin trendgross margin 59.2% -> 56.6%, operating margin 23.7% -> 19.9%
    ✗SleepRevenue rising; gross margin flat or falling; operating margin holding
    5-year Revenue CAGR12.2%
    ✓SleepCAGR > 7%
    5-Year EPS CAGR12.1% CAGR over 5 years
    ✓Templeton> 0% (5-year EPS CAGR)
    Positive Net Income Frequency22/22 years positive
    ✓MarksPositive net income in >= 7 of last 10 years
    3yr Median Revenue Growth4.9%
    ✗Ackman>= 5%
    Positive EPS Growth Frequency2/5 years with positive EPS growth
    ✗AckmanPositive EPS growth in >= 3 of last 5 years
    EPS Growth Direction
    ✗DremanPositive over recent years
    EPS CAGR
    ✗Dreman> 5% annualized
    P/E / EPS Growth Rate0.72
    ✓Lynch< 1.0 (ideally < 0.5)
    3-5 Year EPS CAGR12.1%
    ✓Lynch15-30% (Fast Grower); > 0% to pass
    Inventory Growth vs Revenue GrowthInv: 0.0% vs Rev: 0.0%
    ✗LynchInventory growth < Revenue growth
    EPS Growth (3-yr avg, 10-yr window)
    ✗Graham>= 33% growth
    3-5 Year Diluted EPS CAGR24.1% over 5 years
    ✗Neff7%-20% annualized
  • Valuation50% pass✓ 16✗ 10▾

    6 of 12 pass — Templeton, Dreman, Graham +3 more object

    Valuation ReasonablenessP/E=9.0x, OE Yield=10.5%
    ✓MungerP/E < 25 or Owner Earnings Yield > 5%
    Price / EPS8.7x
    ✓Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)✓Dreman< 12x
    Price vs. Trailing Low100% of trailing low ($115.74)
    ✓Templeton<= 120% of trailing low (post-2025 live window only)
    Price / Book Value per Share2.6x
    ✗Templeton< 1.5x✗Dreman< 1.2x✗SchlossP/B <= 0.80x (app cutoff)
    P/B or P/E vs. Historical AverageP/E=8.7x, P/B=2.6x
    ✓MarksP/E < 15 or P/B < 2.0
    Discount to Intrinsic Value43.8% (IV=$205.80 vs Price=$115.74)
    ✓Marks>= 20% below intrinsic value
    P/E or FCF YieldP/E=8.7x, FCF Yield=7.0%
    ✓PabraiP/E < 15 or FCF Yield > 10%
    Price / FCF per Share14.0x
    ✓Ackman<= 25
    Price / (CFO / Shares)8.0x
    ✗Dreman< 8x
    EBIT / Enterprise Value16.8%
    ✓Greenblatt> 10%
    Earnings Yield + ROC AssessmentEY=16.8%, ROC=50.1%
    ✓GreenblattBoth EY > 10% and ROC > 25%
    P/E / EPS Growth Rate0.72
    ✓Lynch< 1.0 (ideally < 0.5)
    Price / 3-yr avg EPS8.4x
    ✓Graham<= 15x
    Price-to-Book Ratio2.6x
    ✗Graham<= 1.5x
    P/E x P/B21.90
    ✓Graham<= 22.5
    Revenue / market capitalization+1.0353; #1609/5203 (top 30.9%)
    ✗OshaughnessyTop 10% of eligible cross-section
    Net income / market capitalization+14.73%; #349/6251 (top 5.6%)
    ✓OshaughnessyTop 10% of eligible cross-section
    (Operating cash flow - capex) / market capitalization+8.59%; #826/4487 (top 18.4%)
    ✗OshaughnessyTop 10% of eligible cross-section
    Trailing six-month price return through the evaluation date-36.73%; #5228/6203 (top 84.3%)
    ✗OshaughnessyTop 10% of eligible cross-section
    Price / Tangible Book Value per Share2.24x
    ✗SchlossP/TBV <= 1.00x (app cutoff)
    Book Value per Share Change+119.7%
    ✓SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)
    Price / Diluted EPS7.3x
    ✓NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)
    (EPS CAGR % + Dividend Yield %) / P/E
    ✗Neff> 0.7 (Neff's published traditional edge)

Business & financials

Company Profile

Industry: Apparel
SIC Sector: Apparel Manufacturing
Size: Large Cap($10.7B)
Revenue: $11.1B+4.9% YoY
Net Income: $1.6B-13.0% YoY

Financial Snapshot

Operating Margin19.9%
Return on Equity31.8%
Debt / Equity0.00
Current Ratio2.26
EPS (Diluted)$13.26−9.4% 1y
Buybacks (1y)$1.2B
Buybacks (2y)$2.8B
Shares Retired4.4% / 8.6% 2y

Similar Companies

CTASCINTAS CORP
$79.0B
TPRTAPESTRY, INC.
$22.8B
ASAmer Sports, Inc.
$15.2B
DECKDECKERS OUTDOOR CORP
$10.8B

Shareholder Return

Fiscal 2025

Retired 4.4% of shares last year, 8.6% over two.

Buybacks
$1.2B
Dividends
—

What drove EPS

A buyback raises earnings per share without the company earning more. This splits each year's change into the two.

FY22
−10.8% = −12.4% + 1.8%
FY23
82.6% = 81.4% + 0.7%
FY24
20.0% = 17.1% + 2.5%
FY25
−9.4% = −13.0% + 4.1%
Earnings Fewer shares More shares

The two parts do not sum exactly to the total — the difference is the cross-term, plus preferred capital where the company has any. It is left visible rather than distributed into the other two.

Share count is the denominator the filer used for diluted EPS, recovered as net income ÷ EPS — not the balance-sheet count, which is a point-in-time figure and would put the timing difference into this split. Years with a loss are omitted: a smaller share count makes a loss per share larger, so the decomposition inverts.

Company Financials

Annual data (10-K) · Last 5 years

MetricFY 2025FY 2024FY 2023FY 2022FY 2021
Market Cap$10.7B$47.8Best.$54.9Best.$37.5Best.$41.0Best.
Revenue$11.1B↑5%$10.6B↑10%$9.6B↑19%$8.1B↑30%$6.3B
Operating Income$2.2B↓12%$2.5B↑17%$2.1B↑61%$1.3B$1.3B
Net Income$1.6B↓13%$1.8B↑17%$1.6B↑81%$854.8M↓12%$975.3M
EPS (Diluted)$13.26↓9%$14.64↑20%$12.20↑83%$6.68↓11%$7.49
Gross Margin56.6%↓4%59.2%↑2%58.3%↑5%55.4%↓4%57.7%
Operating Margin19.9%↓16%23.7%↑7%22.2%↑35%16.4%↓23%21.3%
ROE31.8%↓24%42.0%↑15%36.6%↑35%27.1%↓24%35.6%
Total Debt$0$0$0$0$0
Shareholders' Equity$5.0B↑15%$4.3B↑2%$4.2B↑34%$3.1B↑15%$2.7B
Current Ratio2.26↑4%2.16↓13%2.49↑18%2.12↑14%1.86
Debt / Equity0.000.000.000.000.00
Operating Cash Flow$1.6B↓29%$2.3B↓1%$2.3B↑138%$966.5M↓30%$1.4B
Free Cash Flow$921.7M↓42%$1.6B↓4%$1.6B↑402%$327.8M↓67%$994.6M

Score history

Historical Score Timeline

Industry peers

Industry Peers

Similar companies in Apparel

LULU vs Peers — Financial Grading

Revenue$11.1BTop 25%
Net Income$1.6BTop 25%
ROE31.8%Top 25%
D/E0.00Top 25%
Op. Margin19.9%Top 25%
Curr. Ratio2.26Top 25%
CompanyMarket CapPriceRevenueNet IncomeROED/EOp. MarginCurr. RatioGrahamBuffettLynchGreenblattPiotroskiDreman
CINTAS CORPCTAS$79.0B$197.74$10.3B$1.8B38.7%0.5222.8%2.093/95/91/71/3F-Score 55/11
TAPESTRY, INC.TPR$22.8B$114.12$7.0B$183.2M21.4%2.795.9%1.871/93/91/70/3F-Score 53/11
Amer Sports, Inc.AS$15.2B$27.24$6.6B$427.4M7.4%0.1410.7%1.502/93/92/71/3F-Score 74/11
DECKERS OUTDOOR CORPDECK$10.8B$77.68$5.5B$1.0B41.0%—23.1%3.542/95/93/73/3F-Score 75/11
On Holding AGONON$9.9B$29.55$3.8B$257.3M12.5%0.3212.5%2.712/95/92/71/3F-Score 74/11
Gildan Activewear Inc.GIL$7.9B$42.62$3.6B$398.9M11.2%1.2117.1%2.113/95/91/70/3F-Score 45/11
LEVI STRAUSS & COLEVI$7.6B$19.75$6.3B$578.1M25.4%0.4610.8%1.553/95/92/71/3F-Score 75/11
Crocs, Inc.CROX$6.3B$126.14$4.0B$81.2M-6.3%0.953.7%1.272/94/90/71/3F-Score 52/11