lululemon athletica (LULU) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

lululemon athletica

NasdaqGS•Consumer Cyclical•Apparel Retail

$98.06-1.33(-0.01%)After hours

Market Cap

$11.07B

P/E

7.8x

P/S

1.0x

P/B

2.3x

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.

How this company scores

GoodMetricSide Score: 65/100

Strongest: Cash & Earnings Quality (20/25); weakest: Growth (11/25).

Profitability19/25

Growth11/25

Balance Sheet & Red Flags15/25

Cash & Earnings Quality20/25

Strengths

Rising free cash flowStrong marginsHigh ROEInterest easily covered

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 7.8x5y range 7.8x – 69.4x

Currently below its 20-quarter median.

P/S · 1.0x5y range 1.0x – 10.3x

Currently below its 20-quarter median.

P/B · 2.3x5y range 2.3x – 22.7x

Currently below its 20-quarter median.

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

Operating margins dropped 21.8% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.

Earnings Quality

Red Flag

FCF consistently trails net income (avg 0.6x) — earnings may be inflated by non-cash items or aggressive accounting.

Price & Volume

Market Cap $11.07B

Metrics at a Glance

as of August 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $11.09B
Q. Revenue: $2.42B
TTM EBITDA: $2.52B
TTM Op. Income: $1.98B
Q. Op. Income: $453.65M
TTM Net Income: $1.42B
Q. Net Income: $329.22M
EPS: $2.92
Shares Out.: $112.90M

$11.09B in TTM revenue grew 1.7% YoY, reaching $2.42B last quarter. TTM EBITDA of $2.52B and TTM operating income of $1.98B show growth is flowing through to the bottom line. TTM net income of $1.42B means revenue is converting into profit. Over the past year, TTM revenue is up 2% — a weakening trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 60.5%
EBITDA Margin: 24.7%
Op. Margin: 18.8%
Net Margin: 13.6%

Op. margin of 18.8% is down 2.0% YoY — costs are rising relative to revenue. Net margin at 13.6% and gross margin of 60.5% show how much of each revenue dollar survives to profit. Over the past year, operating margin is down 9% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 7.8x
P/S Ratio: 1.0x
P/B Ratio: 2.3x

At 7.8x P/E, the stock trades below typical market levels. P/S of 1.0x and P/B of 2.3x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has fallen for 2 consecutive quarters — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $8.48B
Cash: N/A
Long-Term Debt: N/A
Book Value: $4.79B
D/E Ratio: N/A
Debt/EBITDA: 0.0

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $374.84M
TTM Free Cash Flow: $1.35B
FCF Margin: 12.2%
FCF / Net Income: 1.0

TTM FCF of $1.35B on $374.84M in operating cash flow. The FCF / Net Income ratio of 1.0x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 2 consecutive quarters — an improving trend.