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LULU

LULU

Consumer Cyclical · Apparel Retail

$116.70+0.42%
Mkt Cap: $13.25B

Performance

LULU (LULU) Stock Analysis 2026

Rule-based · Updated daily · Not financial advice

LULU (LULU) operates in the Apparel Retail space within the Consumer Cyclical sector. With a market cap of $13.3B, it qualifies as a mid-cap company. Growth is moderate and the business remains profitable, offering a balanced risk/reward profile compared to high-multiple peers.

Bull Case5
  • Low P/E of 9.4× suggests the stock may be undervalued relative to earnings
  • Healthy profit margin of 13.0%
  • ROE of 32.0% shows management efficiently converts equity into profit
  • Current ratio of 2.2× — ample short-term liquidity
  • Price is near its 52-week low — potential entry point with asymmetric upside
Bear Case3
  • Earnings fell 35% YoY — profitability is under pressure
  • High debt-to-equity of 44.26× increases financial risk, especially with elevated interest rates
  • No dividend history — total return depends entirely on price appreciation

Verdict

Buy / Hold

More positives than negatives. Fundamentals support holding while monitoring key risks.

AI Insight

Powered by Claude

AI-generated analysis for informational purposes only. Not financial advice.

Related Articles

Revenue & Results

Dividends

This stock does not pay dividends.

If You Had Invested…

Hypothetical return based on historical prices

$

* Dividend reinvestment calculated at ex-date price. For informational purposes only.

Earnings

Next Earnings

Sep 3, 2026

79

days

EPS (TTM)

$12.35

P/E (TTM)

9.4

Fwd P/E

10.1

Earnings History

SEC EDGAR · official filings

SEC filings

SEC Filings

Official EDGAR documents

All filings

Key Statistics

Valuation

Market Cap$13.25B
P/E Ratio9.45
Forward P/E10.10
P/B Ratio
PEG Ratio0.58
EPS (TTM)$12.35

Trading

Open
Day High
Day Low
52W High$252.24
52W Low$109.36
Volume
Avg Volume (3M)3,549,244
Beta0.86

Dividends

Dividend Yield
Annual Rate
Ex-Div Date
Payout Ratio0.00%

Profitability

Profit Margin13.03%
Operating Margin11.21%
ROE32.03%
ROA16.05%
Revenue Growth4.30%
Earnings Growth-35.00%

Balance Sheet

Total Revenue$11.20B
Total Debt$2.14B
Debt / Equity44.26
Current Ratio2.23
Free Cash Flow$1.13B

Fair Value Estimates

Current price: $116.70

Graham Number

√(22.5 × EPS × Book Value)

$108.79

-6.8% downside

Benjamin Graham's intrinsic value formula. Assumes a fair stock trades at no more than 22.5× the product of EPS and book value per share.

Bazin Ceiling Price

Avg. Annual DPS (5Y) ÷ 6%

N/A

Décio Bazin's dividend-based ceiling. The max price you should pay so that dividends alone deliver at least 6% annual yield on your cost basis.

These are simplified estimates. Not financial advice.

Buy & Hold Checklist

Quality criteria for long-term holding

5/10

63% score

Pays dividends

No dividend history found

Dividend consistency (5Y+)

Uninterrupted dividend payments for at least 5 years

ROE above 10%

32.0%

Return on equity — measures how efficiently capital is used

Positive profit margin

13.0%

Net profit margin must be positive — company earns more than it spends

Revenue growth (annual)

+4.3%

Annual revenue must be growing compared to the prior year

Earnings growth (annual)

-35.0%

Annual earnings must be growing compared to the prior year

Debt/Equity below 2×

44.26×

Low financial leverage reduces risk of distress

Current ratio above 1

2.23×

Short-term assets must cover short-term liabilities

Daily liquidity above $5M

$414M/day

High trading volume ensures easy entry and exit

Dividend yield above 0%

Stock must distribute income to shareholders

Related Assets

Consumer Cyclical

About LULU

lululemon athletica inc., together with its subsidiaries, designs, distributes, and retails technical athletic apparel, footwear, and accessories for women and men under the lululemon brand in the United States, Canada, Mexico, China, Hong Kong, Taiwan, Macau, Greece, and internationally. It offers pants, shorts, tops, and jackets for athletic activities, such as yoga, running, training, and other activities. The company also provides fitness-inspired accessories. It sells its products through company-operated stores; seasonal stores, pop-ups, university campus retailers, and yoga and fitness studios; outlets; Like New, a re-commerce program; and its e-commerce website. The company was founded in 1998 and is based in Vancouver, Canada.

Sector

Consumer Cyclical

Industry

Apparel Retail

Location

Vancouver, Canada

Employees

39,000