TPR’s 18% Single Month Rise Brings Valuations Into Focus – Is LULU a Better Deal?
Lululemon Athletica (LULU) offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Tapestry (TPR), suggesting you may be better off investing in LULU
- LULU’s quarterly revenue growth was 7.3%, vs. TPR’s 6.9%.
- In addition, its Last 12 Months revenue growth came in at 9.4%, ahead of TPR’s 2.7%.
- LULU leads on profitability over both periods – LTM margin of 23.4% and 3-year average of 22.7%.
TPR provides luxury accessories and lifestyle products globally through Coach, Kate Spade, and Stuart Weitzman, operating 939 Coach stores as of mid-2021. LULU designs, distributes, and retails athletic apparel and accessories globally through company-operated stores and direct-to-consumer channels across multiple countries.
Valuation & Performance Overview
| TPR | LULU | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 18.8 | 9.4 | LULU |
| Revenue Growth | |||
| Last Quarter | 6.9% | 7.3% | LULU |
| Last 12 Months | 2.7% | 9.4% | LULU |
| Last 3 Year Average | 1.0% | 17.6% | LULU |
| Operating Margins | |||
| Last 12 Months | 17.9% | 23.4% | LULU |
| Last 3 Year Average | 17.6% | 22.7% | LULU |
| Momentum | |||
| Last 3 Year Return | 260.4% | -38.2% | 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
But do these numbers tell the full story? Read Buy or Sell LULU Stock to see if Lululemon Athletica’s edge holds up under the hood or if Tapestry still has cards to play (see Buy or Sell TPR Stock).
That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| TPR Return | 17% | 32% | -3% | 0% | 83% | 68% | 349% | <=== | |
| LULU Return | 50% | 12% | -18% | 60% | -25% | -50% | -17% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 8% | 93% | ||
| Monthly Win Rates [3] | |||||||||
| TPR Win Rate | 58% | 50% | 58% | 42% | 75% | 86% | 62% | ||
| LULU Win Rate | 58% | 42% | 33% | 83% | 50% | 29% | 49% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 57% | 62% | <=== | |
| Max Drawdowns [4] | |||||||||
| TPR Max Drawdown | -60% | -2% | -34% | -28% | -3% | -7% | -22% | ||
| LULU Max Drawdown | -40% | -18% | -34% | -9% | -54% | -49% | -34% | ||
| 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 till date (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.