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 Analysis

Flawless balance sheet with solid 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

Stable Share Price: LULU has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.6%

LULU

-2.4%

US Luxury

-1.1%

US Market


1 Year Return

71.4%

LULU

9.3%

US Luxury

17.9%

US Market

Return vs Industry: LULU exceeded the US Luxury industry which returned 9.3% over the past year.

Return vs Market: LULU exceeded the US Market which returned 17.9% over the past year.


Shareholder returns

LULUIndustryMarket
7 Day0.6%-2.4%-1.1%
30 Day6.5%-2.1%1.4%
90 Day15.2%4.3%6.9%
1 Year71.4%71.4%11.5%9.3%20.3%17.9%
3 Year291.8%291.8%63.5%56.0%47.8%38.3%
5 Year273.9%273.9%47.0%37.2%71.9%53.0%

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?

59.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LULU ($255.9) is trading above our estimate of fair value ($176.42)

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 (59.1x) compared to the Luxury industry average (17.8x).

PE vs Market: LULU is poor value based on its PE Ratio (59.1x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: LULU is poor value based on its PEG Ratio (4.3x)


Price to Book Ratio

PB vs Industry: LULU is overvalued based on its PB Ratio (20.2x) compared to the US Luxury industry average (1.2x).


Next Steps

Future Growth

How is Lululemon Athletica forecast to perform in the next 1 to 3 years based on estimates from 32 analysts?

13.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LULU's forecast earnings growth (13.8% per year) is above the savings rate (1.7%).

Earnings vs Market: LULU's earnings (13.8% per year) are forecast to grow slower than the US market (14.1% per year).

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

Revenue vs Market: LULU's revenue (11.9% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: LULU's revenue (11.9% 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 high in 3 years time (38.1%)


Next Steps

Past Performance

How has Lululemon Athletica performed over the past 5 years?

16.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LULU has a high level of non-cash earnings.

Growing Profit Margin: LULU's current net profit margins (15.1%) are higher than last year (12.8%).


Past Earnings Growth Analysis

Earnings Trend: LULU's earnings have grown by 16.8% per year over the past 5 years.

Accelerating Growth: LULU's earnings growth over the past year (44.7%) exceeds its 5-year average (16.8% per year).

Earnings vs Industry: LULU earnings growth over the past year (44.7%) exceeded the Luxury industry 3.5%.


Return on Equity

High ROE: LULU's Return on Equity (34.3%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Lululemon Athletica's financial position?


Financial Position Analysis

Short Term Liabilities: LULU's short term assets ($1.5B) exceed its short term liabilities ($574.8M).

Long Term Liabilities: LULU's short term assets ($1.5B) exceed its long term liabilities ($631.6M).


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

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.


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Calvin McDonald (47yo)

1.5yrs

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's total compensation ($USD17.75M) is above average for companies of similar size in the US market ($USD10.81M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Calvin McDonald
CEO & Director1.5yrsUS$17.75m0.0071% $2.4m
Patrick Guido
Chief Financial Officer1.8yrsUS$1.89m0.00013% $43.3k
Julie Averill
Executive VP & CTO2.8yrsUS$2.21m0.00097% $323.4k
Celeste Burgoyne
Executive VP of Americas & Global Guest Innovation3.2yrsUS$3.10m0.0074% $2.5m
Michelle Choe
Chief Product Officer2.1yrsUS$2.97m0.0010% $336.8k
Howard Tubin
Vice President of Investor Relations0yrsno datano data
Shannon Higginson
Senior VP0.2yrsno datano data
Allison Reid
Vice President of Corporate Communications0yrsno datano data
Susan Gelinas
Senior Vice President of People & Culture0.2yrsno datano data
Larry Gore
Senior Vice President of Merchandise Planning and Allocations0yrsno datano data

1.8yrs

Average Tenure

47yo

Average Age

Experienced Management: LULU's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Calvin McDonald
CEO & Director1.5yrsUS$17.75m0.0071% $2.4m
David Mussafer
Lead Director2.1yrsUS$194.30k0.015% $4.8m
Jonathan McNeill
Independent Director3.8yrsUS$211.56k0.0047% $1.6m
Martha A. Morfitt
Independent Director11.2yrsUS$245.56k0.069% $23.1m
Michael Casey
Independent Director12.3yrsUS$242.56k0.043% $14.5m
Glenn Murphy
Non-Executive Chairman2.3yrsUS$857.33k0.078% $26.1m
Tricia Glynn
Independent Director2.5yrsUS$132.43k0.0018% $600.2k
Kathryn Henry
Independent Director4.1yrsUS$216.56k0.0034% $1.1m
Emily White
Independent Director8.3yrsUS$217.56k0.013% $4.2m
Stephanie Ferris
Independent Director0.6yrsno data0.00044% $146.7k

3.2yrs

Average Tenure

52yo

Average Age

Experienced Board: LULU's board of directors are considered experienced (3.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LULU insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$33.342b
  • Shares outstanding: 130.29m
  • 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-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; and athletic wear for female youth. It also provides fitness-related accessories, including bags, socks, underwear, yoga mats and equipment, and water bottles. The company sells its products through a chain of company-operated stores; outlets and warehouse sales; a network of wholesale accounts, such as yoga studios, health clubs, and fitness centers; temporary locations, including seasonal stores; license and supply arrangements; and showrooms, as well as directly to consumer through mobile apps, and lululemon.com e-commerce site. As of February 3, 2019, it operated 440 company-operated stores under the lululemon and ivivva brands in the United States, Canada, Australia, the United Kingdom, New Zealand, China, Singapore, France, Japan, Ireland, Sweden, South Korea, Germany, and Switzerland. lululemon athletica inc. was founded in 1998 and is based in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 01:14
End of Day Share Price2020/02/21 00:00
Earnings2019/11/03
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.