Fool - Investing News·1 day ago
After Declining 45% This Year, Can Lululemon Bounce Back in the Second Half of 2026?The stock hasn't been trading this low since 2018.
Lululemon Athletica Inc.(LULU)Earnings, Financials & Key Ratios
LULU•NASDAQ
$115.07
8.7× P/E·Price updated Jul 7, 2026
Aboutlululemon athletica inc., together with its subsidiaries, designs, distributes, and retails athletic apparel and accessories for women and men. It operates in two segments, Company-Operated Stores and Direct to Consumer. The company offers pants, shorts, tops, and jackets for healthy lifestyle and athletic activities, such as yoga, running, and training, as well as other sweaty pursuits. It also provides fitness-related accessories and footwear. The company sells its products through a chain of company-operated stores; outlets and warehouse sales; interactive workout platform; a network of wholesale accounts, such as yoga studios, health clubs, and fitness centers; temporary locations; and license and supply arrangements, as well as directly to consumer through mobile apps and lululemon.com e-commerce website. As of January 30, 2022, it operated 574 company-operated stores under the lululemon brand in the United States, Canada, the People's Republic of China, Australia, the United Kingdom, Japan, New Zealand, Germany, South Korea, Singapore, France, Malaysia, Sweden, Ireland, the Netherlands, Norway, and Switzerland. lululemon athletica inc. was founded in 1998 and is based in Vancouver, Canada.Show more
- Revenue$11.1B+4.9%
- EBITDA$2.71B-8.3%
- Net Income$1.58B-13.0%
- EPS (Diluted)13.26-9.4%
- Gross Margin56.6%-4.4%
- EBITDA Margin24.38%-12.6%
- Operating Margin19.91%-15.9%
- Net Margin14.22%-17.0%
- ROE34.01%-19.8%
LULU Price & Volume
Lululemon Athletica Inc. (LULU) stock price & volume — 10-year historical chart
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Decelerating Growth Challenges Lululemon's Premium Valuation
Investment Thesis • Updated 2026Q1
VerdictNeutral
Growth:Decelerating
Profitability:Strained
Financial:Healthy
Cash Flow:Mixed
Primary Risk:Brand saturation and margin compression
Key Thesis Takeaways
- Lululemon is currently navigating a transition from high-growth expansion to a more mature operational phase, characterized by significant margin compression and slowing revenue growth.
- While the company maintains a robust balance sheet with a 2.23 current ratio, the reliance on aggressive share repurchases despite declining free cash flow margins suggests potential risks to long-term capital allocation.
- Investors should monitor whether the company can stabilize its operating margins, which have contracted to 11.2% in 2026Q1, before assuming a return to historical double-digit growth trajectories.
Verdict Logic
while the stock trades at a low 8.87 P/E ratio, the 35% decline in EPS growth and significant margin compression warrant caution until operational efficiency stabilizes.
LULU Growth Metrics
Lululemon Athletica Inc. (LULU) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years18.34%
5 Years20.33%
3 Years11.03%
TTM4.22%
Profit CAGR
10 Years19.49%
5 Years21.81%
3 Years22.7%
TTM-19.26%
EPS CAGR
10 Years21.51%
5 Years24.13%
3 Years25.68%
TTM-16.33%
Return on Capital
10 Years37.39%
5 Years39.75%
3 Years41.68%
Last Year35.85%
LULU Recent Earnings
Lululemon Athletica Inc. (LULU) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 12/12 qtrs (100%)●Beat Revenue 9/12 qtrs (75%)
Q3 2026Latest
Jun 4, 2026Metric
Actual
Est
EPS
$1.69+1.2%
$1.67
Rev
$2.5B+1.4%
$2.4B
Q2 2026
Mar 17, 2026Metric
Actual
Est
EPS
$5.01+5.3%
$4.76
Rev
$3.6B+1.8%
$3.6B
Q4 2025
Dec 11, 2025Metric
Actual
Est
EPS
$2.59+16.7%
$2.22
Rev
$2.6B+3.4%
$2.5B
Q4 2025
Sep 4, 2025Metric
Actual
Est
EPS
$3.10+6.5%
$2.91
Rev
$2.5B-0.3%
$2.5B
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q3 2026Latest | Jun 4, 2026 | $1.69vs $1.67+1.2% | $2.5Bvs $2.4B+1.4% |
| Q2 2026 | Mar 17, 2026 | $5.01vs $4.76+5.3% | $3.6Bvs $3.6B+1.8% |
| Q4 2025 | Dec 11, 2025 | $2.59vs $2.22+16.7% | $2.6Bvs $2.5B+3.4% |
| Q4 2025 | Sep 4, 2025 | $3.10vs $2.91+6.5% | $2.5Bvs $2.5B-0.3% |
Based on last 12 quarters of dataView full earnings history →
Latest LULU News
Recent stock market news and headlines for Lululemon Athletica Inc. (LULU)
Seeking Alpha·1 day ago
Fiserv And Lululemon Lessons Revisited: 5 Popular Stocks With Quant Sell RatingsThe Quant system has a back-tested history of significant outperformance compared to the S&P 500 and Wall Street analysts – proven outperformance that has worked on the buy and sell. This article explains how Seeking Alpha's Quant Sell ratings have historically helped investors avoid underperforming stocks while identifying companies facing continued downside risk. Revisit two previous stock crashes that followed Quant Sell ratings and examine three popular stocks whose slowing fundamentals warrant increased investor caution.
Zacks Investment Research·1 day ago
Here is What to Know Beyond Why lululemon athletica inc. (LULU) is a Trending StockLululemon (LULU) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Seeking Alpha·2 days ago
lululemon: Don't Mistake Macro Weakness For Permanent Decline (Rating Upgrade)lululemon athletica is upgraded to Strong Buy as valuation now reflects a compelling discount to its turnaround potential. Despite ongoing North American weakness and cautious guidance, LULU's debt-free balance sheet and robust buybacks (potential ~8.76% yield expected) provide strong downside protection. International growth pillars remain very solid, with China and global markets growing 23% and 9% YoY, offsetting US softness.
Fool - Investing News·6 days ago
This Once-Booming Stock Is Down 78% From Its All-Time High. Here's 1 Reason to Consider Buying Now.Patient investors can still find opportunities in today's market environment.
Peers Comparison
Key metrics vs top competitors for Lululemon Athletica Inc. (LULU)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $115.07 | $13.07B | 8.68 | 4.86% | 14.22% | 34.01% | — | |
| $43.21 | $63.94B | 20.00 | -9.84% | 4.84% | 16.41% | — | |
| $6.74 | $2.88B | -5.81 | -3.86% | -9.94% | -30.13% | — | |
| $124.55 | $6.23B | -83.03 | -1.5% | -2.58% | -7.54% | — | |
| $77.05 | $3.55B | 145.38 | 3.44% | 0.25% | 0.45% | — | |
| $395.31 | $24.11B | 26.16 | 14.63% | 11.6% | 34.77% | — |
Compare LULU vs Peers
Lululemon Athletica Inc. (LULU) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
LULU SEC Filings & Documents
Lululemon Athletica Inc. (LULU) SEC filings — annual & quarterly reports (10-K, 10-Q)
8-K Announcements
6Material company update
Jun 4, 2026·SEC
Material company update
May 27, 2026·SEC
Material company update
Apr 28, 2026·SEC
10-K Annual Reports
310-Q Quarterly Reports
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LULU Frequently Asked Questions
Lululemon Athletica Inc. (LULU) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is Lululemon Athletica Inc.'s revenue?
Lululemon Athletica Inc. (LULU) reported $11.20B in revenue for fiscal year 2025. This represents a 13217% increase from $84.1M in 2005.
How fast is Lululemon Athletica Inc. growing?
Lululemon Athletica Inc. (LULU) grew revenue by 4.9% over the past year. Growth has been modest.
Is LULU profitable?
Yes, Lululemon Athletica Inc. (LULU) is profitable, generating $1.46B in net income for fiscal year 2025 (14.2% net margin).
Dividend & Returns
What is LULU's return on equity?
Lululemon Athletica Inc. (LULU) has a return on equity (ROE) of 34.0%. This is excellent, indicating efficient use of shareholder capital.
What is Lululemon Athletica Inc.'s free cash flow?
Lululemon Athletica Inc. (LULU) generated $1.28B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.