company background image
LULU

Lululemon AthleticaNasdaqGS:LULU Stock Report

Last Price

US$321.62

Market Cap

US$41.6b

7D

-3.3%

1Y

-2.7%

Updated

25 Jan, 2022

Data

Company Financials +
LULU fundamental analysis
Snowflake Score
Valuation0/6
Future Growth4/6
Past Performance5/6
Financial Health6/6
Dividends0/6

LULU Stock Overview

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

Rewards

Earnings are forecast to grow 15.7% per year

Earnings have grown 23.1% per year over the past 5 years

Risk Analysis

No risks detected for LULU from our risk checks.

Lululemon Athletica Competitors

V.F

NYSE:VFC

US$26.7b

Tapestry

NYSE:TPR

US$10.1b

Levi Strauss

NYSE:LEVI

US$8.6b

Under Armour

NYSE:UAA

US$8.3b

Price History & Performance

Summary of all time highs, changes and price drops for Lululemon Athletica
Historical stock prices
Current Share PriceUS$321.62
52 Week HighUS$485.83
52 Week LowUS$269.28
Beta1.26
1 Month Change-17.86%
3 Month Change-25.84%
1 Year Change-2.71%
3 Year Change115.92%
5 Year Change376.40%
Change since IPO2,197.29%

Recent News & Updates

Jan 24
Calculating The Fair Value Of Lululemon Athletica Inc. (NASDAQ:LULU)

Calculating The Fair Value Of Lululemon Athletica Inc. (NASDAQ:LULU)

How far off is Lululemon Athletica Inc. ( NASDAQ:LULU ) from its intrinsic value? Using the most recent financial data...

Jan 10
Here's Why I Think Lululemon Athletica (NASDAQ:LULU) Might Deserve Your Attention Today

Here's Why I Think Lululemon Athletica (NASDAQ:LULU) Might Deserve Your Attention Today

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Jan 09

Lululemon: A Failed Breakout Following Q3 Results

Lululemon released its Q3 results in December, reporting revenue growth of 30%, helped by strong same-store sales growth, and impressive growth internationally. These solid results combined with margin expansion prompted the company to raise its FY2021 earnings guidance, with the company on track to grow annual EPS 56% vs. 2019 levels. However, the MIRROR acquisition continues to underperform with a major downgrade in guidance, and despite the recent correction, LULU still trades at ~39x FY2022 earnings estimates. With the stock recently changing its character following a failed breakout, and limited margin of safety from a valuation standpoint, I don't see any reason to rush to buy the dip here at $360.00.

Jan 01

Lululemon: A Great Financial Fitness Plan

Lululemon innovated by creating its own apparel category of Athleisure and then dominated the category in the face of significant competition. The company has among the highest sales per square foot metric of any retailer in the world and logged $1,657 in sales per square foot in its stores in 2019. Among the best gross margins in the apparel industry are held by Lululemon which showed gross margins of 57.80% in Q3 2021. The acquisition of Mirror shows Lululemon has optionality and looks to build new, adjacent revenue streams. Lululemon has great growth, expanding margins, is Free Cash Flow positive and a great buy for growth investors in 2022.

Dec 29
Is Now The Time To Look At Buying Lululemon Athletica Inc. (NASDAQ:LULU)?

Is Now The Time To Look At Buying Lululemon Athletica Inc. (NASDAQ:LULU)?

Let's talk about the popular Lululemon Athletica Inc. ( NASDAQ:LULU ). The company's shares received a lot of attention...

Shareholder Returns

LULUUS LuxuryUS Market
7D-3.3%-2.4%-5.8%
1Y-2.7%3.4%4.2%

Return vs Industry: LULU underperformed the US Luxury industry which returned 3.4% over the past year.

Return vs Market: LULU underperformed the US Market which returned 4.2% over the past year.

Price Volatility

Is LULU's price volatile compared to industry and market?
LULU volatility
LULU Average Weekly Movement4.8%
Luxury Industry Average Movement6.2%
Market Average Movement6.7%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.4%

Stable Share Price: LULU is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: LULU's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199825,000Calvin McDonaldhttps://www.lululemon.com

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

Lululemon Athletica Fundamentals Summary

How do Lululemon Athletica's earnings and revenue compare to its market cap?
LULU fundamental statistics
Market CapUS$41.58b
Earnings (TTM)US$870.66m
Revenue (TTM)US$5.86b

47.8x

P/E Ratio

7.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LULU income statement (TTM)
RevenueUS$5.86b
Cost of RevenueUS$2.47b
Gross ProfitUS$3.39b
ExpensesUS$2.51b
EarningsUS$870.66m

Last Reported Earnings

Oct 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)6.73
Gross Margin57.79%
Net Profit Margin14.87%
Debt/Equity Ratio0%

How did LULU perform over the long term?

See historical performance and comparison

Valuation

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

47.76x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LULU ($321.62) is trading above our estimate of fair value ($266.92)

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 (47.8x) compared to the US Luxury industry average (16.4x).

PE vs Market: LULU is poor value based on its PE Ratio (47.8x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: LULU is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: LULU is overvalued based on its PB Ratio (15.6x) compared to the US Luxury industry average (1.7x).


Future Growth

How is Lululemon Athletica forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

15.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LULU's forecast earnings growth (15.7% per year) is above the savings rate (2%).

Earnings vs Market: LULU's earnings (15.7% per year) are forecast to grow faster than the US market (13% per year).

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

Revenue vs Market: LULU's revenue (13.1% per year) is forecast to grow faster than the US market (9.1% per year).

High Growth Revenue: LULU's revenue (13.1% 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 (40%)


Past Performance

How has Lululemon Athletica performed over the past 5 years?

23.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LULU has high quality earnings.

Growing Profit Margin: LULU's current net profit margins (14.9%) are higher than last year (13.7%).


Past Earnings Growth Analysis

Earnings Trend: LULU's earnings have grown significantly by 23.1% per year over the past 5 years.

Accelerating Growth: LULU's earnings growth over the past year (56.3%) exceeds its 5-year average (23.1% per year).

Earnings vs Industry: LULU earnings growth over the past year (56.3%) underperformed the Luxury industry 57.1%.


Return on Equity

High ROE: LULU's Return on Equity (32.8%) is considered high.


Financial Health

How is Lululemon Athletica's financial position?


Financial Position Analysis

Short Term Liabilities: LULU's short term assets ($2.3B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: LULU's short term assets ($2.3B) exceed its long term liabilities ($795.5M).


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


Dividend

What is Lululemon Athletica 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 recent payouts.

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

2.8yrs

Average management tenure


CEO

Calvin McDonald (49 yo)

3.42yrs

Tenure

US$10,590,106

Compensation

Mr. Calvin R. McDonald serves as Independent Director at The Walt Disney Company since May 27, 2021. He serves as the Chief Executive Officer and Director of Lululemon Athletica Inc. since August 20, 2018....


CEO Compensation Analysis

Compensation vs Market: Calvin's total compensation ($USD10.59M) is about average for companies of similar size in the US market ($USD11.47M).

Compensation vs Earnings: Calvin's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: LULU's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: LULU's board of directors are considered experienced (5.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 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
  • Implied Market Cap: US$41.584b
  • Shares outstanding: 129.29m
  • Website: https://www.lululemon.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/25 06:35
End of Day Share Price2022/01/24 00:00
Earnings2021/10/31
Annual Earnings2021/01/31


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.