Lululemon Athletica (LULU)
Market Price (6/6/2026): $114.3 | Market Cap: $13.2 BilSector: Consumer Discretionary | Industry: Apparel, Accessories & Luxury Goods
Lululemon Athletica (LULU)
Market Price (6/6/2026): $114.3Market Cap: $13.2 BilSector: Consumer DiscretionaryIndustry: Apparel, Accessories & Luxury Goods
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 11%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 6.8%, FCF Yield is 9.7% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 17%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 11% Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -46% Stock buyback supportStock Buyback 3Y Total is 3.6 Bil Low stock price volatilityVol 12M is 48% Megatrend and thematic driversMegatrends include E-commerce & Digital Retail, Experience Economy & Premiumization, and Health & Wellness Trends. Themes include Direct-to-Consumer Brands, Show more. | Weak multi-year price returns2Y Excs Rtn is -103%, 3Y Excs Rtn is -142% | Key risksLULU key risks include [1] sales stagnation in its core North American market driven by product fatigue, Show more. |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 11%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 6.8%, FCF Yield is 9.7% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 17%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 11% |
| Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -46% |
| Stock buyback supportStock Buyback 3Y Total is 3.6 Bil |
| Low stock price volatilityVol 12M is 48% |
| Megatrend and thematic driversMegatrends include E-commerce & Digital Retail, Experience Economy & Premiumization, and Health & Wellness Trends. Themes include Direct-to-Consumer Brands, Show more. |
| Weak multi-year price returns2Y Excs Rtn is -103%, 3Y Excs Rtn is -142% |
| Key risksLULU key risks include [1] sales stagnation in its core North American market driven by product fatigue, Show more. |
Qualitative Assessment
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Updated on 6/5/2026
Lululemon Athletica (LULU) stock has lost about 40% since 2/28/2026 because of the following key factors:
1. Deteriorating North American Performance and Lowered Fiscal 2026 Guidance.
Lululemon's stock experienced a significant decline due to persistent weakness in its key North American market and subsequent downward revisions to its full-year financial outlook. During the fourth quarter of fiscal 2025 (ended February 1, 2026), Americas net revenue decreased by 4% (5% on a constant dollar basis). This trend continued into fiscal Q1 2026 (ended May 3, 2026), with Americas net revenue falling 3% (4% on a constant dollar basis) and comparable sales in the region declining 5% (6% on a constant-dollar basis), marking a fifth consecutive quarter of comparable sales declines for the segment. Consequently, the company significantly cut its full-year fiscal 2026 net revenue forecast to a range of $11.00 billion to $11.15 billion, representing a decline of 1% to 0% compared to the prior year, a considerable drop from previous guidance of 2% to 4% growth. Similarly, diluted earnings per share guidance for fiscal 2026 was lowered to $10.95 to $11.15, down from a prior range of $12.10 to $12.30.
2. Gross Margin Compression and Tariff Headwinds.
Profitability was significantly impacted by gross margin compression driven by tariff-related costs and increased promotional activity. In fiscal Q4 2025, gross margin decreased 550 basis points to 54.9%. The company projected a gross tariff impact of approximately $380 million for fiscal 2026, with only about $160 million in mitigation efforts, contributing to an anticipated 120 basis point full-year gross margin decline. This margin pressure intensified in fiscal Q1 2026, with gross margin contracting by 410 basis points to 54.2%. Operating income in fiscal Q1 2026 consequently decreased by 37%, and operating margin declined 730 basis points to 11.2%.
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Lululemon Athletica (LULU) stock has lost about 40% since 2/28/2026 because of the following key factors:
1. Deteriorating North American Performance and Lowered Fiscal 2026 Guidance.
Lululemon's stock experienced a significant decline due to persistent weakness in its key North American market and subsequent downward revisions to its full-year financial outlook. During the fourth quarter of fiscal 2025 (ended February 1, 2026), Americas net revenue decreased by 4% (5% on a constant dollar basis). This trend continued into fiscal Q1 2026 (ended May 3, 2026), with Americas net revenue falling 3% (4% on a constant dollar basis) and comparable sales in the region declining 5% (6% on a constant-dollar basis), marking a fifth consecutive quarter of comparable sales declines for the segment. Consequently, the company significantly cut its full-year fiscal 2026 net revenue forecast to a range of $11.00 billion to $11.15 billion, representing a decline of 1% to 0% compared to the prior year, a considerable drop from previous guidance of 2% to 4% growth. Similarly, diluted earnings per share guidance for fiscal 2026 was lowered to $10.95 to $11.15, down from a prior range of $12.10 to $12.30.
2. Gross Margin Compression and Tariff Headwinds.
Profitability was significantly impacted by gross margin compression driven by tariff-related costs and increased promotional activity. In fiscal Q4 2025, gross margin decreased 550 basis points to 54.9%. The company projected a gross tariff impact of approximately $380 million for fiscal 2026, with only about $160 million in mitigation efforts, contributing to an anticipated 120 basis point full-year gross margin decline. This margin pressure intensified in fiscal Q1 2026, with gross margin contracting by 410 basis points to 54.2%. Operating income in fiscal Q1 2026 consequently decreased by 37%, and operating margin declined 730 basis points to 11.2%.
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Stock Movement Drivers
Fundamental Drivers
The -38.3% change in LULU stock from 2/28/2026 to 6/5/2026 was primarily driven by a -28.4% change in the company's P/E Multiple.| (LTM values as of) | 2282026 | 6052026 | Change |
|---|---|---|---|
| Stock Price ($) | 185.17 | 114.23 | -38.3% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 11,073 | 11,204 | 1.2% |
| Net Income Margin (%) | 15.7% | 13.0% | -17.1% |
| P/E Multiple | 12.6 | 9.0 | -28.4% |
| Shares Outstanding (Mil) | 119 | 115 | 2.7% |
| Cumulative Contribution | -38.3% |
Market Drivers
2/28/2026 to 6/5/2026| Return | Correlation | |
|---|---|---|
| LULU | -38.3% | |
| Market (SPY) | 7.8% | 51.0% |
| Sector (XLY) | -1.5% | 53.2% |
Fundamental Drivers
The -38.0% change in LULU stock from 11/30/2025 to 6/5/2026 was primarily driven by a -26.8% change in the company's P/E Multiple.| (LTM values as of) | 11302025 | 6052026 | Change |
|---|---|---|---|
| Stock Price ($) | 184.18 | 114.23 | -38.0% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 10,904 | 11,204 | 2.7% |
| Net Income Margin (%) | 16.4% | 13.0% | -20.4% |
| P/E Multiple | 12.3 | 9.0 | -26.8% |
| Shares Outstanding (Mil) | 120 | 115 | 3.6% |
| Cumulative Contribution | -38.0% |
Market Drivers
11/30/2025 to 6/5/2026| Return | Correlation | |
|---|---|---|
| LULU | -38.0% | |
| Market (SPY) | 8.5% | 42.6% |
| Sector (XLY) | -2.5% | 53.0% |
Fundamental Drivers
The -63.9% change in LULU stock from 5/31/2025 to 6/5/2026 was primarily driven by a -57.4% change in the company's P/E Multiple.| (LTM values as of) | 5312025 | 6052026 | Change |
|---|---|---|---|
| Stock Price ($) | 316.67 | 114.23 | -63.9% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 10,588 | 11,204 | 5.8% |
| Net Income Margin (%) | 17.1% | 13.0% | -24.0% |
| P/E Multiple | 21.2 | 9.0 | -57.4% |
| Shares Outstanding (Mil) | 122 | 115 | 5.3% |
| Cumulative Contribution | -63.9% |
Market Drivers
5/31/2025 to 6/5/2026| Return | Correlation | |
|---|---|---|
| LULU | -63.9% | |
| Market (SPY) | 26.6% | 37.8% |
| Sector (XLY) | 8.3% | 42.8% |
Fundamental Drivers
The -65.6% change in LULU stock from 5/31/2023 to 6/5/2026 was primarily driven by a -81.8% change in the company's P/E Multiple.| (LTM values as of) | 5312023 | 6052026 | Change |
|---|---|---|---|
| Stock Price ($) | 331.93 | 114.23 | -65.6% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 8,111 | 11,204 | 38.1% |
| Net Income Margin (%) | 10.5% | 13.0% | 23.6% |
| P/E Multiple | 49.5 | 9.0 | -81.8% |
| Shares Outstanding (Mil) | 127 | 115 | 10.4% |
| Cumulative Contribution | -65.6% |
Market Drivers
5/31/2023 to 6/5/2026| Return | Correlation | |
|---|---|---|
| LULU | -65.6% | |
| Market (SPY) | 83.4% | 43.5% |
| Sector (XLY) | 55.3% | 49.3% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| LULU Return | 12% | -18% | 60% | -25% | -46% | -40% | -64% |
| Peers Return | 13% | -25% | 29% | 24% | -12% | -3% | 18% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 11% | 102% |
Monthly Win Rates [3] | |||||||
| LULU Win Rate | 42% | 33% | 83% | 50% | 42% | 17% | |
| Peers Win Rate | 55% | 35% | 55% | 55% | 48% | 50% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 67% | |
Max Drawdowns [4] | |||||||
| LULU Max Drawdown | -22% | -36% | -15% | -54% | -62% | -45% | |
| Peers Max Drawdown | -23% | -50% | -28% | -29% | -49% | -25% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: NKE, DECK, VFC, PVH, RL. See LULU Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 6/5/2026 (YTD)
How Low Can It Go
| Event | LULU | S&P 500 |
|---|---|---|
| 2024 Yen Carry Trade Unwind | ||
| % Loss | -19.0% | -7.8% |
| % Gain to Breakeven | 23.4% | 8.5% |
| Time to Breakeven | 72 days | 18 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -33.6% | -24.5% |
| % Gain to Breakeven | 50.5% | 32.4% |
| Time to Breakeven | 421 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -47.1% | -33.7% |
| % Gain to Breakeven | 88.9% | 50.9% |
| Time to Breakeven | 66 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -29.9% | -19.2% |
| % Gain to Breakeven | 42.6% | 23.8% |
| Time to Breakeven | 94 days | 105 days |
| 2016-2017 Trump Reflation Bond Selloff | ||
| % Loss | -24.6% | -3.7% |
| % Gain to Breakeven | 32.6% | 3.9% |
| Time to Breakeven | 146 days | 6 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -33.6% | -12.2% |
| % Gain to Breakeven | 50.5% | 13.9% |
| Time to Breakeven | 134 days | 62 days |
In The Past
Lululemon Athletica's stock fell -19.0% during the 2024 Yen Carry Trade Unwind. Such a loss loss requires a 23.4% gain to breakeven.
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Asset Allocation
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| Event | LULU | S&P 500 |
|---|---|---|
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -33.6% | -24.5% |
| % Gain to Breakeven | 50.5% | 32.4% |
| Time to Breakeven | 421 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -47.1% | -33.7% |
| % Gain to Breakeven | 88.9% | 50.9% |
| Time to Breakeven | 66 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -29.9% | -19.2% |
| % Gain to Breakeven | 42.6% | 23.8% |
| Time to Breakeven | 94 days | 105 days |
| 2016-2017 Trump Reflation Bond Selloff | ||
| % Loss | -24.6% | -3.7% |
| % Gain to Breakeven | 32.6% | 3.9% |
| Time to Breakeven | 146 days | 6 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -33.6% | -12.2% |
| % Gain to Breakeven | 50.5% | 13.9% |
| Time to Breakeven | 134 days | 62 days |
| 2013 Taper Tantrum | ||
| % Loss | -41.0% | -0.2% |
| % Gain to Breakeven | 69.4% | 0.2% |
| Time to Breakeven | 884 days | 1 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -29.4% | -17.9% |
| % Gain to Breakeven | 41.6% | 21.8% |
| Time to Breakeven | 116 days | 123 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -91.0% | -53.4% |
| % Gain to Breakeven | 1014.0% | 114.4% |
| Time to Breakeven | 620 days | 1085 days |
In The Past
Lululemon Athletica's stock fell -19.0% during the 2024 Yen Carry Trade Unwind. Such a loss loss requires a 23.4% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Lululemon Athletica (LULU)
lululemon 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.
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Here are 1-3 brief analogies for Lululemon Athletica:
A premium Nike for athleisure and wellness, emphasizing design and fit.
The Apple of athletic apparel, known for its premium pricing, strong brand loyalty, and distinctive design.
The Starbucks of activewear, building a premium lifestyle brand around health and well-being.
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- Athletic Apparel: Designs and sells a range of clothing including pants, shorts, tops, and jackets for men and women, suitable for yoga, running, training, and other athletic pursuits.
- Fitness-Related Accessories: Offers various accessories that complement athletic activities and healthy lifestyles.
- Footwear: Provides shoes designed for athletic and fitness purposes.
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Lululemon Athletica (LULU) primarily sells its products directly to individual consumers through its company-operated stores, e-commerce website, and mobile apps. Based on the provided description, the company serves the following categories of customers:
- Women engaged in athletic activities and healthy lifestyles: This category targets female individuals who participate in athletic activities such as yoga, running, and training, or who generally pursue a healthy and active lifestyle.
- Men engaged in athletic activities and healthy lifestyles: This category targets male individuals who participate in athletic activities like yoga, running, and training, or who prioritize a healthy and active way of living.
- Enthusiasts of specific fitness regimens: This category encompasses individuals who are dedicated to particular athletic activities like yoga, running, and training, and other "sweaty pursuits," seeking specialized apparel and accessories for their active lifestyles.
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Meghan Frank, Interim Co-Chief Executive Officer & Chief Financial Officer
Meghan Frank was appointed Lululemon's Chief Financial Officer in November 2020, becoming the company's first female CFO. She joined Lululemon in 2016 as Senior Vice President of Financial Planning and Analysis and served as interim co-CFO starting April 2020. In December 2025, she was named interim co-CEO alongside André Maestrini during a CEO transition. Prior to Lululemon, Frank held senior finance and merchandise planning roles at major retailers, including nearly a decade at J. Crew and positions at Ross Stores.
André Maestrini, Interim Co-Chief Executive Officer & President and Chief Commercial Officer
André Maestrini was appointed President and Chief Commercial Officer in November 2025. He joined Lululemon in 2021 as Executive Vice President of International. In December 2025, he was named interim co-CEO with Meghan Frank as part of Lululemon's CEO succession plan. Before Lululemon, Maestrini spent 14 years at Adidas in various senior global roles, leading operations in EMEA, APAC, and China Mainland. His earlier career included marketing roles at The Coca-Cola Company, Danone, and Kraft Jacobs Suchard.
Nikki Neuburger, Chief Brand Officer
Nikki Neuburger joined Lululemon in January 2020 as Chief Brand Officer, overseeing marketing, creative, communications, and sustainability. Prior to Lululemon, she served as Global Head of Marketing for Uber Eats for two years, where she led the brand's introduction and expansion across 36 countries. Before Uber Eats, Neuburger spent 14 years at Nike, most recently as Global Vice President of Nike Running, where she was responsible for global consumer insights, brand strategy, and integrated marketing.
Julie Averill, Executive Vice President and Chief Technology Officer
Julie Averill joined Lululemon in 2017 as Executive Vice President and Chief Technology Officer. She previously served as the first-ever Chief Information Officer at REI. Before REI, Averill spent a decade at Nordstrom, holding various information technology roles, including Vice President of selling and marketing systems.
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The key risks to Lululemon Athletica (LULU) include significant supply chain vulnerabilities exacerbated by global trade policies and ethical concerns, intense competition coupled with evolving consumer preferences, and broader macroeconomic headwinds impacting consumer spending.
- Supply Chain Risks, Tariffs, and Ethical Concerns: Lululemon faces substantial risks within its global supply chain. Global trade policy uncertainties, including rising tariffs and geopolitical tensions, are increasing cost volatility and disrupting traditional sourcing patterns, particularly in key Asian manufacturing hubs. The removal of the de minimis exemption on imports has significantly impacted Lululemon, with an estimated reduction of approximately $240 million in gross profit for the full fiscal year 2025 due to these tariff changes. Beyond financial implications, the company also confronts persistent ethical and reputational risks related to its supply chain, specifically accusations of a high risk of sourcing cotton from the Uyghur Region of China, an area associated with forced labor and human rights abuses. Maintaining product quality across a diverse and complex supply chain also poses ongoing challenges.
- Intense Competition and Shifting Consumer Preferences: The athleisure market, where Lululemon operates, is highly competitive with both established global brands like Nike and Adidas, and agile newcomers such as Alo Yoga and Vuori, aggressively vying for market share. This intensified rivalry puts pressure on Lululemon's premium pricing power and its ability to maintain customer loyalty. Moreover, shifts in consumer preferences towards affordability, versatility, and away from premium discretionary goods are forcing Lululemon into increased discounting, a significant departure from its historical strategy of selling most merchandise at full price. The company must continually innovate and introduce new products to resonate with consumers and avoid "stale product" offerings.
- Macroeconomic Headwinds and North American Market Softness: Broader macroeconomic pressures, including concerns about a potential recession, persistent inflation, and financial strain among consumers, particularly in lower-income brackets, pose a risk to discretionary spending on premium goods like Lululemon's products. This environment has contributed to a slowdown in Lululemon's sales growth and declining comparable sales in its core North American market. While international markets have shown strong growth, weakness in its primary region remains a significant challenge for the company's overall financial performance.
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The addressable markets for Lululemon Athletica's main products and services are substantial globally and across key regions where the company operates.
Athletic Apparel and Activewear
- The global activewear market, which includes apparel, footwear, and other items, was estimated at USD 440.39 billion in 2025 and is projected to reach USD 919.98 billion by 2033.
- Within this, North America accounted for 38.1% of the global activewear market in 2025, with the U.S. market specifically expected to grow at a CAGR of 9.0% from 2026 to 2033.
- The activewear market in Europe held a revenue share of 25.50% of the global market in 2025.
- The Asia Pacific activewear market is anticipated to grow at a CAGR of 10.9% from 2026 to 2033.
- Specifically focusing on sports apparel, the global sports apparel market size was valued at USD 220.35 billion in 2025 and is projected to grow to USD 325.21 billion by 2034. North America dominated the sports apparel market with a market share of 39.21% in 2025.
Yoga Clothing
- The global yoga clothing market size was valued at USD 31.93 billion in 2025 and is projected to grow to USD 66.34 billion by 2034.
- North America dominated the yoga clothing market with a market share of 33.27% in 2025. The U.S. yoga clothing market is projected to reach USD 11.72 billion by 2032.
Athletic Footwear
- The global athletic footwear market size was valued at USD 145.49 billion in 2025 and is expected to reach USD 234.68 billion by 2034.
- North America dominated the athletic footwear market with a market share of 34.09% in 2025. Asia Pacific accounted for over 36.8% of the market share in 2024.
Fitness-Related Accessories
- The global sport accessories market is valued at USD 90.0 billion in 2025 and is projected to reach USD 125.0 billion by 2035.
Interactive Workout Platform (Virtual Fitness)
- The global virtual fitness market size was valued at USD 34.25 billion in 2025 and is projected to grow from USD 43.78 billion in 2026 to USD 311.91 billion by 2034.
- North America led the overall virtual fitness market with a revenue share of 33% (in a prior year, likely around 2025-2026 as per source context).
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Lululemon Athletica (LULU) is expected to drive future revenue growth over the next 2-3 years through several strategic initiatives outlined in its "Power of Three x2" growth plan, which aims to double its 2021 revenue to $12.5 billion by 2026.
The key drivers of this anticipated growth include:
- International Market Expansion: Lululemon is prioritizing significant growth in its international presence, with a goal to quadruple international revenues relative to 2021 by 2026. This expansion focuses heavily on key regions such as Mainland China, the Asia-Pacific (APAC) market, and Europe, the Middle East, and Africa (EMEA), through new store openings and deepening brand connection. The company has also announced strategic partnerships to enter new markets like India.
- Product Innovation and Category Expansion: The company plans to leverage its "Science of Feel" innovation to continue growing its women's and men's apparel, and accessories businesses. Specific focus areas include scaling the recently launched footwear category and expanding into adjacent sports like golf, racket sports, and hiking to increase basket size and margin mix.
- Growth in Men's Business: A dedicated focus is placed on doubling the men's revenue relative to 2021 by 2026, building on early achievements in this segment.
- Enhanced Digital Engagement and Direct-to-Consumer (DTC) Growth: Lululemon aims to double its digital revenues, creating world-class guest experiences by leveraging strong customer relationships. This includes initiatives like a two-tiered membership program to foster community and engagement, and the "Lululemon Like New" trade-in and resale program.
- Expansion of Footwear and Accessories: Beyond apparel, Lululemon expects footwear and accessories to materially increase basket size and contribute to revenue growth. This indicates a strategic effort to diversify product offerings beyond its core apparel categories.
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Capital Allocation Decisions for Lululemon Athletica (LULU)
Share Repurchases
- On December 3, 2025, Lululemon's board of directors authorized a $1.0 billion increase to its existing stock repurchase program. This action brought the total remaining authorized amount for share repurchases to approximately $1.6 billion as of December 11, 2025.
- The company executed significant share repurchases in recent fiscal years, with annual buybacks totaling $1.637 billion in fiscal 2025, $558.652 million in fiscal 2024, and $444.001 million in fiscal 2023.
- During the third quarter of fiscal 2025, Lululemon repurchased 1.0 million shares of its common stock for a cost of $189.0 million.
Share Issuance
- Lululemon Athletica's issuance of common stock averaged $21.481 million for the fiscal years ending January 2021 to 2025.
- The issuance of common stock reached a peak of $42.43 million in January 2024.
- In January 2025, the company's common stock issuance amounted to $19.813 million.
Outbound Investments
- In September 2024, Lululemon acquired the lululemon branded retail locations and operations in Mexico from a third-party partner, converting them to a company-operated model.
Capital Expenditures
- Lululemon's capital expenditures have shown a consistent increase over the past few fiscal years, reaching $689.2 million in fiscal 2025, $651.9 million in fiscal 2024, and $638.7 million in fiscal 2023.
- For fiscal 2025 (ending February 1, 2026), the company anticipated capital expenditures to be near the low end of its prior guidance of $700-$720 million.
- The primary focus of capital expenditures includes opening 40-45 net new company-operated stores in 2025, with a significant emphasis on international markets, particularly China, as well as enhancing existing stores and investing in corporate activities such as cloud technology and business systems.
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 92.97 |
| Mkt Cap | 14.2 |
| Rev LTM | 9,298 |
| Op Inc LTM | 1,280 |
| FCF LTM | 876 |
| FCF 3Y Avg | 938 |
| CFO LTM | 1,168 |
| CFO 3Y Avg | 1,120 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 3.9% |
| Rev Chg 3Y Avg | 3.9% |
| Rev Chg Q | 3.2% |
| QoQ Delta Rev Chg LTM | 0.7% |
| Op Inc Chg LTM | -0.6% |
| Op Inc Chg 3Y Avg | 1.5% |
| Op Mgn LTM | 11.5% |
| Op Mgn 3Y Avg | 11.7% |
| QoQ Delta Op Mgn LTM | -0.4% |
| CFO/Rev LTM | 11.0% |
| CFO/Rev 3Y Avg | 12.9% |
| FCF/Rev LTM | 7.4% |
| FCF/Rev 3Y Avg | 10.3% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 14.2 |
| P/S | 1.3 |
| P/Op Inc | 11.4 |
| P/EBIT | 12.1 |
| P/E | 23.1 |
| P/CFO | 11.3 |
| Total Yield | 5.6% |
| Dividend Yield | 0.1% |
| FCF Yield 3Y Avg | 5.9% |
| D/E | 0.2 |
| Net D/E | 0.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -7.5% |
| 3M Rtn | 0.0% |
| 6M Rtn | -6.4% |
| 12M Rtn | 8.7% |
| 3Y Rtn | -5.4% |
| 1M Excs Rtn | -7.7% |
| 3M Excs Rtn | -9.5% |
| 6M Excs Rtn | -18.4% |
| 12M Excs Rtn | -24.3% |
| 3Y Excs Rtn | -78.7% |
Price Behavior
Price Behavior
| Market Price | $114.23 | |
| Market Cap ($ Bil) | 13.4 | |
| First Trading Date | 07/27/2007 | |
| Distance from 52W High | -65.5% | |
| 50 Days | 200 Days | |
| DMA Price | $140.78 | $171.23 |
| DMA Trend | down | down |
| Distance from DMA | -18.9% | -33.3% |
| 3M | 1YR | |
| Volatility | 46.9% | 48.4% |
| Downside Capture | 278.89 | 252.53 |
| Upside Capture | 35.12 | 56.30 |
| Correlation (SPY) | 43.5% | 34.6% |
LULU Betas & Captures as of 5/31/2026
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 1.11 | 1.84 | 1.38 | 1.35 | 1.44 | 1.20 |
| Up Beta | 3.29 | 1.67 | 2.09 | 1.35 | 1.45 | 1.13 |
| Down Beta | 2.57 | 1.56 | 0.59 | 1.07 | 1.11 | 0.94 |
| Up Capture | -34% | 43% | 28% | 81% | 63% | 105% |
| Bmk +ve Days | 13 | 28 | 36 | 67 | 141 | 432 |
| Stock +ve Days | 10 | 19 | 24 | 59 | 118 | 382 |
| Down Capture | 71% | 481% | 223% | 183% | 175% | 111% |
| Bmk -ve Days | 7 | 13 | 27 | 57 | 109 | 318 |
| Stock -ve Days | 10 | 22 | 39 | 65 | 131 | 368 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with LULU | |
|---|---|---|---|---|
| LULU | -64.8% | 48.3% | -2.00 | - |
| Sector ETF (XLY) | 7.8% | 18.3% | 0.27 | 42.5% |
| Equity (SPY) | 25.3% | 12.1% | 1.57 | 37.4% |
| Gold (GLD) | 27.6% | 26.9% | 0.88 | 2.3% |
| Commodities (DBC) | 36.9% | 19.0% | 1.52 | -17.5% |
| Real Estate (VNQ) | 12.5% | 13.3% | 0.63 | 16.6% |
| Bitcoin (BTCUSD) | -39.7% | 42.2% | -1.08 | 16.3% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with LULU | |
|---|---|---|---|---|
| LULU | -18.2% | 42.1% | -0.35 | - |
| Sector ETF (XLY) | 6.7% | 23.8% | 0.24 | 56.7% |
| Equity (SPY) | 13.5% | 17.1% | 0.62 | 52.5% |
| Gold (GLD) | 17.3% | 18.1% | 0.78 | 2.4% |
| Commodities (DBC) | 9.5% | 19.4% | 0.38 | 4.0% |
| Real Estate (VNQ) | 3.2% | 18.8% | 0.07 | 33.0% |
| Bitcoin (BTCUSD) | 12.1% | 54.6% | 0.42 | 22.8% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with LULU | |
|---|---|---|---|---|
| LULU | 6.5% | 40.6% | 0.29 | - |
| Sector ETF (XLY) | 12.5% | 22.0% | 0.52 | 56.8% |
| Equity (SPY) | 15.3% | 17.9% | 0.73 | 51.6% |
| Gold (GLD) | 13.0% | 16.0% | 0.67 | 3.3% |
| Commodities (DBC) | 7.1% | 18.0% | 0.32 | 10.8% |
| Real Estate (VNQ) | 5.6% | 20.7% | 0.24 | 36.5% |
| Bitcoin (BTCUSD) | 63.9% | 66.9% | 1.03 | 17.4% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 6/6/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 6/4/2026 | -8.6% | ||
| 3/17/2026 | 3.8% | 1.1% | 2.3% |
| 12/11/2025 | 9.6% | 15.0% | 13.3% |
| 9/4/2025 | -18.6% | -19.6% | -14.8% |
| 6/5/2025 | -19.8% | -25.3% | -28.7% |
| 3/27/2025 | -14.2% | -25.1% | -21.4% |
| 12/5/2024 | 15.9% | 12.9% | 14.1% |
| 8/29/2024 | 0.2% | -2.0% | 4.8% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 13 | 13 | 12 |
| # Negative | 12 | 11 | 12 |
| Median Positive | 6.7% | 8.1% | 6.8% |
| Median Negative | -8.0% | -9.8% | -10.5% |
| Max Positive | 15.9% | 18.4% | 18.0% |
| Max Negative | -19.8% | -25.3% | -28.7% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 04/30/2026 | 06/04/2026 | 10-Q |
| 01/31/2026 | 03/17/2026 | 10-K |
| 10/31/2025 | 12/11/2025 | 10-Q |
| 07/31/2025 | 09/04/2025 | 10-Q |
| 04/30/2025 | 06/05/2025 | 10-Q |
| 01/31/2025 | 03/27/2025 | 10-K |
| 10/31/2024 | 12/05/2024 | 10-Q |
| 07/31/2024 | 08/29/2024 | 10-Q |
| 04/30/2024 | 06/05/2024 | 10-Q |
| 01/31/2024 | 03/21/2024 | 10-K |
| 10/31/2023 | 12/07/2023 | 10-Q |
| 07/31/2023 | 08/31/2023 | 10-Q |
| 04/30/2023 | 06/01/2023 | 10-Q |
| 01/31/2023 | 03/28/2023 | 10-K |
| 10/31/2022 | 12/08/2022 | 10-Q |
| 07/31/2022 | 09/01/2022 | 10-Q |
Recent Forward Guidance
Updated 6/5/2026Latest: Q1 2026 Earnings Reported 6/4/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q2 2026 Revenue | 2.45 Bil | 2.46 Bil | 2.48 Bil | ||||
| Q2 2026 EPS | 1.76 | 1.78 | 1.81 | ||||
| 2026 Revenue | 11.00 Bil | 11.07 Bil | 11.15 Bil | -3.1% | Lowered | Guidance: 11.43 Bil for 2026 | |
| 2026 EPS | 10.9 | 11.1 | 11.2 | -9.4% | Lowered | Guidance: 12.2 for 2026 | |
Prior: Q4 2025 Earnings Reported 3/17/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q1 2026 Revenue | 2.40 Bil | 2.42 Bil | 2.43 Bil | Higher New | |||
| Q1 2026 Revenue Growth | 1.0% | 2.0% | 3.0% | Higher New | |||
| Q1 2026 EPS | 1.63 | 1.66 | 1.68 | Higher New | |||
| 2026 Revenue | 11.35 Bil | 11.43 Bil | 11.50 Bil | 3.8% | Higher New | Actual: 11.00 Bil for 2025 | |
| 2026 Revenue Growth | 2.0% | 3.0% | 4.0% | Higher New | |||
| 2026 EPS | 12.1 | 12.2 | 12.3 | -5.9% | Lower New | Actual: 13 for 2025 | |
Insider Activity
Updated 4/26/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Neuburger, Nicole | Chief Brand Officer | Direct | Sell | 4092026 | 161.00 | 622 | 100,142 | 3,084,116 | Form |
| 2 | Maestrini, Andre | Pres, CCO & Interim Co-CEO | Direct | Buy | 4032026 | 151.02 | 3,275 | 494,591 | 5,217,892 | Form |
| 3 | Bergh, Charles V | Trust | Buy | 3202026 | 164.20 | 6,090 | 999,978 | 999,978 | Form | |
| 4 | Frank, Meghan | Chief Financial Officer | Direct | Sell | 1022026 | 211.37 | 2,658 | 561,821 | 5,416,568 | Form |
| 5 | Burgoyne, Celeste | Pres Americas & Global Guest | Direct | Sell | 12172025 | 204.00 | 13,511 | 2,756,181 | 1,084,847 | Form |
Industry Resources
| Consumer Discretionary Resources |
| Retail Dive |
| Business of Fashion (BoF) |
| WWD (Women's Wear Daily) |
| National Retail Federation (NRF) |
| McKinsey & Company - Consumer |
| Mintel Consumer Trends |
| Apparel, Accessories & Luxury Goods Resources |
| Vogue Business |
| Jing Daily |
| Luxury Daily |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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Core Cache Last Updated: 6/5/2026