Is Lululemon Athletica a Better Buy Than Tapestry?
Tapestry surged 23% during the past Month. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer Lululemon Athletica gives you more. Lululemon Athletica (LULU) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Tapestry (TPR) stock, suggesting you may be better off investing in LULU
- LULU’s Last 12 Months revenue growth was 8.8%, vs. TPR’s 8.1%.
- In addition, its Last 3-Year Average revenue growth came in at 14.2%, ahead of TPR’s 2.5%.
- LULU leads on profitability over both periods – LTM margin of 22.0% and 3-year average of 22.4%.
These differences become even clearer when you look at the financials side by side. The table highlights how TPR’s fundamentals stack up against those of LULU on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| TPR | LULU | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 20.0 | 10.3 | LULU |
| Revenue Growth | |||
| Last Quarter | 13.1% | 7.1% | TPR |
| Last 12 Months | 8.1% | 8.8% | LULU |
| Last 3 Year Average | 2.5% | 14.2% | LULU |
| Operating Margins | |||
| Last 12 Months | 18.7% | 22.0% | LULU |
| Last 3 Year Average | 17.8% | 22.4% | LULU |
| Momentum | |||
| Last 3 Year Return | 275.1% | -31.7% | TPR |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: TPR Revenue Comparison | LULU Revenue Comparison
See more margin details: TPR Operating Income Comparison | LULU Operating Income Comparison
See detailed fundamentals on Buy or Sell LULU Stock and Buy or Sell TPR Stock. Below we compare market return and related metrics across years.
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| TPR Return | 17% | 32% | -3% | 0% | 83% | 101% | 449% | <=== | |
| LULU Return | 50% | 12% | -18% | 60% | -25% | -44% | -8% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 17% | 114% | ||
| Monthly Win Rates [3] | |||||||||
| TPR Win Rate | 58% | 50% | 58% | 42% | 75% | 67% | 58% | ||
| LULU Win Rate | 58% | 42% | 33% | 83% | 50% | 42% | 51% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 73% | 65% | <=== | |
| Max Drawdowns [4] | |||||||||
| TPR Max Drawdown | -60% | -2% | -34% | -28% | -3% | -7% | -22% | ||
| LULU Max Drawdown | -40% | -18% | -34% | -9% | -54% | -58% | -36% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | <=== | |
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 12/23/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read LULU Dip Buyer Analyses and TPR Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.
Still not sure about TPR or LULU? Consider portfolio approach.
Stock Picking Falls Short Against Multi Asset Portfolios
Stocks can jump or crash but different assets move on different cycles. A multi asset portfolio helps you stay invested while cushioning swings in equities.
The asset allocation framework of Trefis’ Boston-based, wealth management partner yielded positive returns during the 2008-09 period when the S&P lost more than 40%. Our partner’ strategy now includes Trefis High Quality Portfolio, which has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices