Stock · LULU · Consumer Cyclical

Lululemon Athletica Inc.

Canada · Large Cap · listed since 2007 · Revenue 12 mo. $11.1B

Price as of 11/06/2026

StockScorer score
7.3
of 10 8 of 11 points High Match To the score
Price
$110.79
1 Y −41.9%
Market cap
$12.8B
Phase
Growth
revenue growing, core business profitable
Revenue +11.0% a year (3 years)EBIT margin 19.9%Payout 73.5% of operating cash flow

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.

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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. 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.

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Summary

Lululemon Athletica Inc. is around the middle of the Consumer Cyclical sector overall

53.3 of 100

Mean of the six area values. Each area value is the mean of the stock's ranks among the companies in its sector. 50 is the middle of the sector, not a share of companies beaten.

Analysis

What the price requires

The price requires 3.1% FCF growth a year, less than achieved over the last 5 and 10 years.

If free cash flow stays at €827.1M (2026), it supports €9.2B. The remaining €2.3B of the market value assume it grows 3.1% a year for 10 years and not at all afterwards.

Required FCF growth per year

3.1%

no growth afterwards

Market value breakdown€11.5B market value, price as of 11/06/2026

€9.2B without growth
€2.3B priced-in growth
  • 5 yrs achieved 29.8%
  • 10 yrs achieved 24.4%
  • priced in 3.1%

Valuation against its own history

Price to operating cash flow 6.3×, below its usual range.

Middle half of 20 quarters: 13.9× to 37.2×, median 21.2×.

Measures only against its own past, not against what the company is worth. Price as of 11/06/2026.

2 signs support the expectation, 1 speaks against it.

What supports it

with respect to the priced-in expectation

  • Expectation below the company's own record priced in 3.1%, achieved at least 24.4%
  • High return on capital every year ROCE at least 24.8% (10 years)

What speaks against it

with respect to the priced-in expectation

  • EBIT margin falling for three quarters −4.3 pp over the last four reports

Since the last quarter

Q2 → Q3 2026

Mostly better than the previous quarter: 2 of 3 changes for the better.

  • FCF, 12 mo.$1.3B → $1.4B+5.8%better
  • Net debt$621.3M → $751.4M+20.9%worse
  • Shares outstanding115M → 113M−2.2%better

5 more unchanged: Revenue, 12 mo., Gross margin, EBIT margin, FCF margin, Return on equity

Derivation

How the sector comparison is derived

Each area value is the average of its metrics' ranks within the sector (0 to 100, 50 is the middle). For metrics where lower is better, the rank is mirrored. The overall value is the average of the area values.

Price as of 11/06/2026.

Profitability75.8above the middleEarns more than the sector: Return on equity 31.83%, sector 11.07%.
MetricStockSector medianPosition in sector
Return on equity31.83%11.07%Rank 87
Return on capital (Greenblatt)36.61%17.91%Rank 78
EBIT margin19.91%10.89%Rank 81
FCF margin8.30%8.07%Rank 52
Gross margin56.60%34.00%Rank 81
Growth67.8above the middleGrows faster than the sector: Earnings growth, 3 years per year 25.70%, sector 8.34%.
MetricStockSector medianPosition in sector
Revenue growth, 1 year4.86%5.10%Rank 49
Earnings growth, 3 years per year25.70%8.34%Rank 79
Earnings growth, 5 years per year24.13%15.10%Rank 68
Sustainable growth (ROE × retained earnings)6.13%4.34%Rank 75
Valuation83.1above the middleValued lower than the sector: EV/EBIT 5.77, sector 16.88.
MetricStockSector medianPosition in sector
Earnings yield11.97%4.32%Rank 95
FCF yield7.22%4.17%Rank 73
EV/saleslower is better1.151.95Rank 67
EV/EBITlower is better5.7716.88Rank 97
Momentum12.3below the middleShare price doing worse than the sector: Distance from 52-week high −48.68%, sector −15.83%.
MetricStockSector medianPosition in sector
Share price, 1 year−41.87%−4.35%Rank 10
Share price, 6 months−15.06%3.63%Rank 18
Share price, 3 months−8.70%2.92%Rank 17
Distance from 52-week high−48.68%−15.83%Rank 4
Quality26.1below the middleQuality below the sector: Price reaction to results, market-adjusted −17.13%, sector 0.16%.
MetricStockSector medianPosition in sector
Accruals (Sloan)lower is better7.96%0.39%Rank 11
Change in share countlower is better−3.93%−0.37%Rank 81
Dividend streak in years–4Rank 12
Price reaction to results, market-adjusted−17.13%0.16%Rank 1
Balance sheet & risk54.3around the middleRisk about like the sector.
MetricStockSector medianPosition in sector
Equity ratio58.67%40.59%Rank 76
Net debt/EBITDAlower is better0.000.99Rank 68
Debt to equitylower is better0.360.49Rank 62
Volatility, 1 yearlower is better45.94%33.42%Rank 11

Ten years in figures

Revenue from $2.3B (2017) to $11.1B (2026), 18.9% a year.

Fiscal years, amounts in USD
YearRevenue, $BEBIT marginFCFSharesNet debt, $M
20172.318.0%$236.9M137M−734.8
20182.617.2%$331.5M136M−990.5
20193.321.5%$517.0M134M−881.3
20204.017.7%$386.3M134M−141.4
20214.418.6%$574.1M131M−351.8
20226.321.3%$994.6M130M−378.8
20238.116.4%$327.8M128M−84.5
20249.622.2%$1.6B127M−840.7
202510.623.7%$1.6B124M−408.5
202611.119.9%$921.7M119M−8.8
7.3 / 10High MatchStockScorer score8 of 11 points

5 of 7 StockScorer Score rules met · How the score is built

Lululemon Athletica Inc. mainly meets criteria in the Profitability category. Result from 18 strategies checked.

This stock · Profitability: 100%This stock · Growth: 50%This stock · Valuation: 100%This stock · Momentum: 0%Median of all stocks · Profitability: 33%Median of all stocks · Growth: 0%Median of all stocks · Valuation: 0%Median of all stocks · Momentum: 0%50%100%ProfitabilityGrowthValuationMomentumThis stockMedian of all stocks

How Lululemon Athletica Inc.'s score is built

Lululemon Athletica Inc. is rated here with the StockScorer Score strategy, the flagship rule set. It compares return and cash-flow metrics with the median of the company's own sector and checks growth and price trend.

5 of 7 rules met

8 of 11 points

  1. Free cash flow yield above the sector medianmet2 of 2 points
  2. Return on capital (Greenblatt ROC) above the sector medianmet2 of 2 points
  3. Return on equity above the sector medianmet1 of 1 point
  4. Free cash flow margin above the sector medianmet2 of 2 points
  5. Revenue growth above 15%not met0 of 2 points
  6. 3-year earnings growth above 12% p.a.met1 of 1 point
  7. 12-month share price more than 20 percentage points ahead of the marketnot met0 of 1 point
  8. Exclusion: financial and real estate stocksdoes not apply

Detail data

How does Lululemon Athletica Inc. stock perform across 18 strategies?

Excerpt from 18 strategies checked. The full evaluation is visible after a free sign-up.

12 more strategies locked

With a free account, you can see the match across all strategies checked in one complete overview.

  • Moat Quality
  • Magic Formula: Value + Quality
  • Altman Z-Score: Stress Test
  • Earnings Quality: Accrual Check (Sloan)
  • Acquirer's Multiple: EV/EBIT Deep Value
  • PEG Strategy (inspired by Peter Lynch)
  • Levermann Strategy (13 Criteria)
  • Defensive: Low Volatility
  • Dividend Aristocrats & Continuity
  • Dividend Quality: 4 Factors
  • High-Growth / Rule of 40
  • Growth Momentum (CAN SLIM principle)

Lululemon Athletica Inc. key metrics: P/E, P/B and equity ratio

Selected fundamental metrics for Lululemon Athletica Inc.

MetricStockSector
P/E ratio8.421.6
P/B ratio2.72.4
Return on equity (ROE)31.8%11.1%
Equity ratio58.7%40.6%
Debt-to-equity (D/E)0.360.49
Dividend yield0.0%2.2%

Similar stocks in Consumer Cyclical

How comparable stocks in the same sector score in the StockScorer model.

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Frequently asked questions about Lululemon Athletica Inc. stock

How does Lululemon Athletica Inc. stock (LULU) score in the StockScorer model?
Lululemon Athletica Inc. stock reaches a StockScorer score of 7.3 out of 10, which is a high match with the rule-based strategies. 5 out of 7 flagship profile rules are met.
What is Lululemon Athletica Inc.'s P/E ratio?
Lululemon Athletica Inc.'s P/E ratio is 8.4. The Consumer Cyclical sector median is 21.6.
What sector is Lululemon Athletica Inc. in?
Lululemon Athletica Inc. is assigned to the Consumer Cyclical sector. Its rank within the sector is 53.3 out of 100: 100 means the stock leads its peer group of large and mid-cap sector stocks in every measured area.

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