NasdaqGS:LULU

Stock Analysis Report

Executive Summary

lululemon athletica inc., together with its subsidiaries, designs, distributes, and retails athletic apparel and accessories for women, men, and female youth.

Snowflake

Fundamentals

Flawless balance sheet with outstanding track record.


Similar Companies

Share Price & News

How has Lululemon Athletica's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.3%

LULU

1.7%

US Luxury

0.07%

US Market


1 Year Return

48.7%

LULU

16.6%

US Luxury

8.9%

US Market

Return vs Industry: LULU exceeded the US Luxury industry which returned 16.6% over the past year.

Return vs Market: LULU exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

LULUIndustryMarket
7 Day0.3%1.7%0.07%
30 Day8.0%8.7%-0.3%
90 Day6.3%4.0%-1.6%
1 Year48.7%48.7%19.0%16.6%11.3%8.9%
3 Year270.9%270.9%61.7%54.4%46.3%36.8%
5 Year389.8%389.8%53.0%43.0%62.1%44.3%

Price Volatility Vs. Market

How volatile is Lululemon Athletica's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lululemon Athletica undervalued compared to its fair value and its price relative to the market?

50.21x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LULU ($204.4) is trading above our estimate of fair value ($110.29)

Significantly Below Fair Value: LULU is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LULU is poor value based on its PE Ratio (50.2x) compared to the Luxury industry average (17.5x).

PE vs Market: LULU is poor value based on its PE Ratio (50.2x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: LULU is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: LULU is overvalued based on its PB Ratio (17.7x) compared to the US Luxury industry average (1.6x).


Next Steps

Future Growth

How is Lululemon Athletica forecast to perform in the next 1 to 3 years based on estimates from 31 analysts?

15.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LULU's forecast earnings growth (15% per year) is above the savings rate (2.7%).

Earnings vs Market: LULU's earnings (15% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: LULU's earnings are forecast to grow, but not significantly.

Revenue vs Market: LULU's revenue (12.7% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: LULU's revenue (12.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LULU's Return on Equity is forecast to be very high in 3 years time (42.6%).


Next Steps

Past Performance

How has Lululemon Athletica performed over the past 5 years?

14.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LULU's earnings have grown by 14.7% per year over the past 5 years.

Accelerating Growth: LULU's earnings growth over the past year (51.9%) exceeds its 5-year average (14.7% per year).

Earnings vs Industry: LULU earnings growth over the past year (51.9%) exceeded the Luxury industry 23.4%.


Return on Equity

High ROE: LULU's Return on Equity (35.5%) is considered high.


Return on Assets

ROA vs Industry: LULU has a higher Return on Assets than the Luxury industry average last year.


Return on Capital Employed

ROCE Improving: LULU has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Lululemon Athletica's financial position?


Financial Position Analysis

Short Term Liabilities: LULU's short term assets ($1.3B) exceeds its short term liabilities ($552.6M)

Long Term Liabilities: LULU's short term assets (1.3B) exceeds its long term liabilities (634.8M)


Debt to Equity History and Analysis

Debt Level: LULU is debt free.

Reducing Debt: LULU had no debt 5 years ago.

Debt Coverage: LULU has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: LULU has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: LULU has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if LULU's debt is covered by short term assets.


Next Steps

Dividend

What is Lululemon Athletica's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate LULU's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate LULU's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if LULU's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LULU's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LULU's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Lululemon Athletica's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

Calvin McDonald (47yo)

1.2yrs

Tenure

US$17,751,989

Compensation

Mr. Calvin McDonald has been Chief Executive Officer and President at Sephora USA, Inc. since January 2014. He serves as the Chief Executive Officer and Director of Lululemon Athletica Inc. since August 20 ...


CEO Compensation Analysis

Compensation vs. Market: Calvin has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Insufficient data to compare Calvin's compensation with company performance.


Management Age and Tenure

2.1yrs

Average Tenure

48yo

Average Age

Experienced Management: LULU's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

2.8yrs

Average Tenure

52yo

Average Age

Experienced Board: LULU's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$834,47224 Jun 19
David Mussafer
EntityIndividual
Role
Lead Director
Lead Director
Shares4,484
Max PriceUS$186.10
SellUS$493,98508 Apr 19
Michelle Choe
EntityIndividual
Role
Senior Key Executive
Chief Product Officer
Shares2,891
Max PriceUS$170.87
SellUS$1,040,09803 Apr 19
Celeste Burgoyne
EntityIndividual
Role
Senior Key Executive
Executive VP of Americas & Global Guest Innovation
Shares6,288
Max PriceUS$165.41
SellUS$1,641,07802 Apr 19
Stuart Haselden
EntityIndividual
Role
Chief Operating Officer
COO & Executive VP of International
Shares9,958
Max PriceUS$164.80
SellUS$370,55302 Apr 19
Kathryn Henry
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,250
Max PriceUS$164.69
SellUS$817,650,00001 Apr 19
Advent International Corporation
EntityCompany
Shares5,000,000
Max PriceUS$163.53
SellUS$1,466,53701 Apr 19
David Mussafer
EntityIndividual
Role
Lead Director
Lead Director
Shares8,968
Max PriceUS$163.53
SellUS$29,976,14731 Jan 19
LIPO Investments (USA), Inc
EntityCompany
Shares200,000
Max PriceUS$150.20
SellUS$340,085,08311 Jan 19
LIPO Investments (USA), Inc
EntityCompany
Shares2,552,997
Max PriceUS$137.50

Ownership Breakdown


Management Team

  • Howard Tubin

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Larry Gore

    Senior Vice President of Merchandise Planning and Allocations

    • Tenure: 0yrs
  • Calvin McDonald (47yo)

    CEO & Director

    • Tenure: 1.2yrs
    • Compensation: US$17.75m
  • Stuart Haselden (49yo)

    COO & Executive VP of International

    • Tenure: 2.4yrs
    • Compensation: US$3.86m
  • Jennifer Battersby

    Senior Vice President of Product Engine

    • Tenure: 0yrs
  • Julie Averill (49yo)

    Executive VP & CTO

    • Tenure: 2.4yrs
    • Compensation: US$2.21m
  • Celeste Burgoyne (45yo)

    Executive VP of Americas & Global Guest Innovation

    • Tenure: 2.8yrs
    • Compensation: US$3.10m
  • Allison Reid

    Vice President of Corporate Communications

    • Tenure: 0yrs
  • Sun Choe (50yo)

    Chief Product Officer

    • Tenure: 1.8yrs
    • Compensation: US$2.97m
  • PJ Guido (46yo)

    Chief Financial Officer

    • Tenure: 1.5yrs
    • Compensation: US$1.89m

Board Members

  • David Mussafer (56yo)

    Lead Director

    • Tenure: 1.8yrs
    • Compensation: US$194.30k
  • Jon McNeill (51yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$211.56k
  • Marti Morfitt (61yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$245.56k
  • Michael Casey (73yo)

    Independent Director

    • Tenure: 12yrs
    • Compensation: US$242.56k
  • Glenn Murphy (57yo)

    Non-Executive Chairman

    • Tenure: 1.9yrs
    • Compensation: US$857.33k
  • Calvin McDonald (47yo)

    CEO & Director

    • Tenure: 1.2yrs
    • Compensation: US$17.75m
  • Tricia Glynn (39yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$132.43k
  • Kathryn Henry (53yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$216.56k
  • Emily White (40yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$217.56k
  • Stephanie Ferris (45yo)

    Director

    • Tenure: 0.3yrs

Company Information

Lululemon Athletica Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lululemon Athletica Inc.
  • Ticker: LULU
  • Exchange: NasdaqGS
  • Founded: 1998
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: US$26.628b
  • Shares outstanding: 130.28m
  • Website: https://www.lululemon.com

Number of Employees


Location

  • Lululemon Athletica Inc.
  • 1818 Cornwall Avenue
  • Vancouver
  • British Columbia
  • V6J 1C7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LULUNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 2007
33LDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2007
0JVTLSE (London Stock Exchange)YesCommon StockGBUSDJul 2007
LULU *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 2007

Biography

lululemon athletica inc., together with its subsidiaries, designs, distributes, and retails athletic apparel and accessories for women, men, and female youth. It operates through two segments, Company-Oper ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:59
End of Day Share Price2019/10/22 00:00
Earnings2019/08/04
Annual Earnings2019/02/03


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.