lululemon athletica inc.

LULU

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.

Country: CanadaPrice: $119.55Market Cap: $13.6B

Company Profile

Industry: Apparel
SIC Sector: Apparel Manufacturing
Size: Large Cap($13.6B)
Revenue: $11.1B+0.0% YoY
Net Income: $1.6B+0.0% YoY

Financial Snapshot

Operating Margin19.9%
Return on Equity31.8%
Debt / Equity--
Current Ratio2.26
EPS (Diluted)$13.26+0.0%
Shares Retired4.1% / 8.0% 2y

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Shareholder Return

Fiscal 2026

Retired 4.1% of shares last year, 8.0% over two.

Buybacks
—
Dividends
—

What drove EPS

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

FY23
82.6% = 81.4% + 0.7%
FY24
20.0% = 17.1% + 2.5%
FY25
−9.4% = −13.0% + 4.1%
FY26
0.0% = 0.0% + 0.0%
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 2026FY 2025FY 2024FY 2023FY 2022
Market Cap$13.6B$19.4Best.$48.1Best.$55.0Best.$37.5Best.
Revenue$11.1B$11.1B↑5%$10.6B↑10%$9.6B↑19%$8.1B
Operating Income$2.2B$2.2B↓12%$2.5B↑17%$2.1B↑61%$1.3B
Net Income$1.6B$1.6B↓13%$1.8B↑17%$1.6B↑81%$854.8M
EPS (Diluted)$13.26$13.26↓9%$14.64↑20%$12.20↑83%$6.68
Gross Margin56.6%56.6%↓4%59.2%↑2%58.3%↑5%55.4%
Operating Margin19.9%19.9%↓16%23.7%↑7%22.2%↑35%16.4%
ROE31.8%31.8%↓24%42.0%↑15%36.6%↑35%27.1%
Total Debt----------
Shareholders' Equity$5.0B$5.0B↑15%$4.3B↑2%$4.2B↑34%$3.1B
Current Ratio2.262.26↑4%2.16↓13%2.49↑18%2.12
Debt / Equity—————
Operating Cash Flow$1.6B$1.6B↓29%$2.3B↓1%$2.3B↑138%$966.5M
Free Cash Flow$921.7M$921.7M↓42%$1.6B↓4%$1.6B↑402%$327.8M
Scored from 10-K1d ago
MetricMarks

Risk-Aware Value

Akre

Three-Legged Stool

Druckenmiller

Macro-Enhanced Growth

Spier

Value Checklist

Pabrai

Dhandho Framework

Munger

Quality Focus

Ackman

Activist Value

Piotroski

F-Score

Greenblatt

Magic Formula

Lynch

GARP

Buffett

Quality Compounder

Graham

Defensive Value

VerdictBUYPASSHOLDBUYBUYHOLDHOLDPASSNot rankedPASSFAILFAIL
Score
Analysis
Intrinsic Value
Margin of Safety+3.4%+75.1%+5.3%+47.2%+54.5%+20.7%+14.4%-168.4%+27.0%+25.5%+19.2%-3.7%
Data As Of10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)

Where They Agree

    Where They Disagree

    • Profitability

      7 of 11 pass — Spier, Piotroski, Buffett +1 more object

      Margin of SafetyP/E=11.5x, P/B=3.4x
      ✗SpierP/E < 15 AND P/B < 2.0✓PabraiP/B < 1.5 or P/E < 15
      Discount to Intrinsic Value25.6% (IV=$205.80 vs Price=$153.10)
      ✓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)
      Show 19 more metrics ▾
      EPS Growth AccelerationLatest: 0.0%, Prior: -9.4%
      ✓DruckenmillerAccelerating EPS growth
      Operating Income / Revenue19.9%
      ✓Ackman>= 15%
      Net Income / Shareholders Equity31.8%
      ✓Ackman>= 15%
      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 Value13.0%
      ✓Greenblatt> 10%
      Earnings Yield + ROC AssessmentEY=13.0%, 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%
      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-4.23x
      ✗Buffett$1 retained -> > $1 market value created
      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
    • Debt & Leverage

      1 of 8 pass — Marks, Akre, Munger +4 more object

      Interest Coverage & Debt/EBITDAIC=2150.4x, D/EBITDA=N/A
      ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x
      Debt Levels
      ✗AkreDebt/Equity < 0.3✗MungerDebt/Equity < 0.5
      Total Debt / Shareholders Equity
      ✗Ackman<= 1.0
      LT Debt / Total Assets Change0.00% -> 0.00%
      ✓PiotroskiDecreased YoY
      Show 4 more metrics ▾
      Total Debt / Equity
      ✗Lynch< 0.33
      Cash - Long-term Debt
      ✗LynchPositive preferred
      Debt/Equity & Interest Coverage
      ✗BuffettD/E < 0.5 AND Interest Coverage > 5x
      LT Debt vs Net Current Assets
      ✗GrahamLT Debt <= Net Current Assets
    • Valuation

      7 of 9 pass — Spier and Graham object

      P/B or P/E vs. Historical AverageP/E=11.5x, P/B=3.4x
      ✓MarksP/E < 15 or P/B < 2.0
      Discount to Intrinsic Value25.6% (IV=$205.80 vs Price=$153.10)
      ✓Marks>= 20% below intrinsic value
      Price vs. 200-day MAQualitative
      ✓DruckenmillerPrice above 200-day moving average
      Margin of SafetyP/E=11.5x, P/B=3.4x
      ✗SpierP/E < 15 AND P/B < 2.0
      Show 9 more metrics ▾
      P/E or FCF YieldP/E=11.5x, FCF Yield=5.4%
      ✓PabraiP/E < 15 or FCF Yield > 10%
      Valuation ReasonablenessP/E=11.5x, OE Yield=8.2%
      ✓MungerP/E < 25 or Owner Earnings Yield > 5%
      Price / FCF per Share18.5x
      ✓Ackman<= 25
      EBIT / Enterprise Value13.0%
      ✓Greenblatt> 10%
      Earnings Yield + ROC AssessmentEY=13.0%, ROC=50.1%
      ✓GreenblattBoth EY > 10% and ROC > 25%
      P/E / EPS Growth Rate0.95
      ✓Lynch< 1.0 (ideally < 0.5)
      Price / 3-yr avg EPS11.2x
      ✓Graham<= 15x
      Price-to-Book Ratio3.4x
      ✗Graham<= 1.5x
      P/E x P/B38.30
      ✗Graham<= 22.5
    • Cash Flow

      5 of 6 pass — Lynch objects

      FCF Positive19/19 years FCF positive
      ✓MarksPositive FCF in majority of recent years
      P/E or FCF YieldP/E=11.5x, FCF Yield=5.4%
      ✓PabraiP/E < 15 or FCF Yield > 10%
      (OCF - CapEx) / Market Cap5.4%
      ✓Ackman>= 4%
      Price / FCF per Share18.5x
      ✓Ackman<= 25
      Show 4 more metrics ▾
      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
    • Growth

      1 of 5 pass — Druckenmiller, Ackman, Lynch +1 more object

      Positive Net Income Frequency22/22 years positive
      ✓MarksPositive net income in >= 7 of last 10 years
      EPS Growth AccelerationLatest: 0.0%, Prior: -9.4%
      ✓DruckenmillerAccelerating EPS growth
      Revenue Growth RateLatest: 0.0%, Prior: 4.9%
      ✗DruckenmillerRevenue growth accelerating
      3yr Median Revenue Growth4.9%
      ✗Ackman>= 5%
      Show 5 more metrics ▾
      Positive EPS Growth Frequency2/5 years with positive EPS growth
      ✗AckmanPositive EPS growth in >= 3 of last 5 years
      P/E / EPS Growth Rate0.95
      ✓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
    • Efficiency

      2 of 6 pass — Akre, Munger, Piotroski +1 more object

      ROIC (high and growing)
      ✗AkreROIC > 15% for 3+ years
      Reinvestment Rate x ROIC
      ✗AkreReinvestment Rate * ROIC > 10%
      Return on Invested Capital
      ✗Munger> 15%
      Current Ratio Change YoY2.26 -> 2.26
      ✗PiotroskiIncreased YoY
      Show 5 more metrics ▾
      Revenue / Total Assets Change YoY1.31x -> 1.31x
      ✗PiotroskiImproved YoY
      EBIT / (NWC + Net Fixed Assets)50.1%
      ✓Greenblatt> 25%
      ROIC (3-5 yr avg)
      ✗Buffett> 10%
      ROIC - WACC
      ✗BuffettPositive (WACC = 10%)
      Current Ratio2.26
      ✓Graham>= 2.0
    • Verdicts

      Split decision: 3 BUY · 3 PASS · 3 HOLD · 2 FAIL

      Overall verdict
      ✓MarksBUY (7/8)✓AkrePASS (3/7)•DruckenmillerHOLD (5/7)✓SpierBUY (7/8)✓PabraiBUY (7/8)•MungerHOLD (5/7)•AckmanHOLD (6/9)✓PiotroskiPASS (F-Score 5)•GreenblattNot ranked✓LynchPASS (PEG 0.95)✗BuffettFAIL (3/9)✗GrahamFAIL (3/9)
    • Valuation models

      Models split on LULU at $119.55 — fair values range $44.55–$479.88

      Marks fair value$123.70
      ✓Marks+3.4% margin vs $119.55
      Akre fair value$479.88
      ✓Akre+75.1% margin vs $119.55
      Druckenmiller fair value$126.20
      ✓Druckenmiller+5.3% margin vs $119.55
      Spier fair value$226.37
      ✓Spier+47.2% margin vs $119.55
      Show 8 more metrics ▾
      Pabrai fair value$262.56
      ✓Pabrai+54.5% margin vs $119.55
      Munger fair value$150.75
      ✓Munger+20.7% margin vs $119.55
      Ackman fair value$139.65
      ✓Ackman+14.4% margin vs $119.55
      Piotroski fair value$44.55
      ✗Piotroski-168.4% margin vs $119.55
      Greenblatt fair value$163.77
      ✓Greenblatt+27.0% margin vs $119.55
      Lynch fair value$160.47
      ✓Lynch+25.5% margin vs $119.55
      Buffett fair value$147.97
      ✓Buffett+19.2% margin vs $119.55
      Graham fair value$115.29
      ✗Graham-3.7% margin vs $119.55

    Historical Score Timeline

    Industry Peers

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    LULU vs Peers — Financial Grading

    Revenue$11.1BTop 25%
    Net Income$1.6BTop 25%
    ROE31.8%Median
    D/E—
    Op. Margin19.9%Median
    Curr. Ratio2.26Top 25%
    CompanyMarket CapPriceRevenueNet IncomeROED/EOp. MarginCurr. RatioGrahamBuffettLynchGreenblattPiotroski
    CINTAS CORPCTAS$79.8B$199.52$10.3B$1.8B38.7%0.5222.8%2.093/96/91/71/3F-Score 5
    TAPESTRY, INC.TPR$25.7B$128.98$7.0B$183.2M21.4%2.795.9%1.871/94/91/70/3F-Score 4
    RALPH LAUREN CORPRL$23.2B$388.92$8.1B$941.1M33.1%0.4414.5%2.135/96/95/71/3F-Score 8
    DECKERS OUTDOOR CORPDECK$12.7B$93.09$5.5B$1.0B41.0%—23.1%3.542/95/93/71/3F-Score 7
    Gildan Activewear Inc.GIL$10.5B$56.72$3.6B$398.9M11.2%1.0817.1%2.113/96/91/70/3F-Score 4
    LEVI STRAUSS & COLEVI$8.7B$22.55$6.3B$578.1M25.4%0.4610.8%1.553/95/92/71/3F-Score 7
    Birkenstock Holding plcBIRK$7.0B$39.35$2.5B$408.6M12.8%0.4226.2%2.812/93/93/71/3F-Score 9
    Crocs, Inc.CROX$6.3B$131.72$4.0B$81.2M-6.3%0.953.7%1.272/94/90/71/3F-Score 5