Lululemon Athletica Inc
Exchange: NASDAQSector: Consumer CyclicalIndustry: Apparel Retail
lululemon athletica inc. is a designer and retailer of technical athletic apparel operating primarily in North America and Australia. The Company's yoga-inspired apparel is marketed under the lululemon athletica brand name. The Company offers a range of performance apparel and accessories for women, men and female youth. Its apparel assortment, including items, such as fitness pants, shorts, tops and jackets, is designed for healthy lifestyle activities such as yoga, running and general fitness. The Company's fitness-related accessories include an array of items, such as bags, socks, underwear, yoga mats, instructional yoga digital versatile discs (DVDs) and water bottles. As of January 29, 2012, its branded apparel was principally sold through 174 stores that are located in Canada, the United States, Australia and New Zealand.
Did you know?
Profit margin stands at 14.2%.
Current Price
$141.66
-13.33%GoodMoat Value
$385.16
171.9% undervaluedProfile
Valuation (TTM)
Market Cap$15.89B
P/E10.06
EV$18.43B
P/B3.20
Shares Out112.19M
P/Sales1.43
Revenue$11.10B
EV/EBITDA5.81
Lululemon Athletica Inc (LULU) Stock Analysis
GoodMoat Analysis
Lululemon presents a compelling profile of a high-quality business with a strong brand moat and exceptional profitability, evidenced by a 31.8% ROE and 19.9% operating margin. However, its current 7.1% revenue growth and valuation at a P/E of 11.3x require careful analysis against its historical growth premium and the GoodMoat target price.
Read full analysis
Lululemon Athletica is a premium athletic apparel retailer known for its technical yoga and fitness wear. Applying the GoodMoat framework, the company's primary competitive advantage lies in a powerful brand and culture moat (Section 1, criteria 6), built on deep community relevance and premium brand perception. This is supported by evidence of pricing power (criteria 13). The business demonstrates high quality, with a stellar 31.8% Return on Equity, a robust 19.9% operating margin, and a healthy free cash flow yield of 5.2%. Its balance sheet is solid with a manageable debt-to-equity ratio of 0.36. The key question for a value investor is the integration of this strong business profile with its current valuation and growth trajectory. The stock trades at a P/E of 11.3x, which appears low on an absolute basis, but this must be contextualized against a significant deceleration in year-over-year revenue growth to 7.1%. The substantial premium of the GoodMoat target price of $385.16 to the current $158.76 suggests a potentially wide margin of safety, but this hinges on a credible return to higher growth rates. Following the Decision Framework (Section 6), the analysis would proceed past the 'Moat & Quality Gate' given strong brand advantages and financials. The final assessment rests on the 'Valuation & Risk Gate,' requiring a detailed DCF analysis to reconcile the low headline multiple, the growth slowdown, and the high target price to determine if the current price is truly favourable. Analysis based on data as of 2024-07-21.
Market Cap$15.89B
Current Price$141.66
P/E Ratio10.06
Forward P/E—
PEG Ratio-0.54
EPS$13.26
Book Value$44.23
P/B Ratio3.20
LULU Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 15.6% FCF growth (CAGR)
Cash vs Debt
Net Cash: 9M
Revenue
4.0B
FY20
4.4B
FY21
6.3B
FY22
8.1B
FY23
9.6B
FY24
10.6B
FY25
11.1B
FY26
Net Income
646M
FY20
589M
FY21
975M
FY22
855M
FY23
1.6B
FY24
1.8B
FY25
1.6B
FY26
LULU 52-Week Range
$141.66
$335.19
50-Day MA: $166.13200-Day MA: $183.53
Did you know?
Trading 172% below its estimated fair value of $385.16.
Lululemon Athletica Inc (LULU) Financial Summary
Lululemon Athletica Inc (LULU) is a Consumer Cyclical company in the Apparel Retail industry, listed on NASDAQ. The stock currently trades at $141.66 with a market capitalization of $15.89B.
Key valuation metrics include a P/E ratio of 10.06, price-to-book ratio of 3.20, and EPS of $13.26. The company reports a profit margin of 14.2% and return on equity of 31.8%.
LULU Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $15.89B |
| P/E Ratio | 10.06 |
| EPS | $13.26 |
| P/B Ratio | 3.20 |
| P/S Ratio | 1.43 |
| EV/EBITDA | 5.81 |
| Profit Margin | 14.2% |
| Return on Equity | 31.8% |
| Debt/Equity | 0.36 |
LULU Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY20 | $3.98B | $645.60M |
| FY21 | $4.40B | $588.91M |
| FY22 | $6.26B | $975.32M |
| FY23 | $8.11B | $854.80M |
| FY24 | $9.62B | $1.55B |
| FY25 | $10.59B | $1.81B |
| FY26 | $11.10B | $1.58B |
Lululemon Athletica Inc (LULU) Valuation
Based on GoodMoat's DCF model, Lululemon Athletica Inc has a fair value estimate of $385.16. At the current price of $141.66, the stock appears 63.2% undervalued relative to our intrinsic value estimate.
LULU Quality Indicators
Lululemon Athletica Inc maintains a profit margin of 14.2% and an operating margin of 19.9%. Return on equity stands at 31.8%. The current ratio is 2.26. Debt-to-equity ratio is 0.36.
About Lululemon Athletica Inc
lululemon athletica inc. is a designer and retailer of technical athletic apparel operating primarily in North America and Australia. The Company's yoga-inspired apparel is marketed under the lululemon athletica brand name. The Company offers a range of performance apparel and accessories for women, men and female youth. Its apparel assortment, including items, such as fitness pants, shorts, tops and jackets, is designed for healthy lifestyle activities such as yoga, running and general fitness. The Company's fitness-related accessories include an array of items, such as bags, socks, underwear, yoga mats, instructional yoga digital versatile discs (DVDs) and water bottles. As of January 29, 2012, its branded apparel was principally sold through 174 stores that are located in Canada, the United States, Australia and New Zealand.
LULU Free Cash Flow
Lululemon Athletica Inc generated $921.67M in trailing twelve-month free cash flow, representing an FCF yield of 5.80%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
LULU Shares Outstanding
Lululemon Athletica Inc has 0.11 billion shares outstanding at a share price of $141.66, giving it a market capitalization of $15.89B.
LULU Recent Insider Trades
Recent insider transactions at Lululemon Athletica Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| MAESTRINI ANDRE (Pres, CCO & Interim Co-CEO) | BUY | 3,275 | $494590.50 |
| FRANK MEGHAN (Chief Financial Officer) | SELL | 2,658 | $561821.46 |
| BURGOYNE CELESTE (Pres Americas & Global Guest) | SELL | 1,906 | $387832.88 |