Lululemon's first-quarter sales rose 4% as increases of 30% in mainland China (19% of sales) and 13% in other international (15%) offset a 3% decline in the Americas (66%). Gross and operating margins fell 410 and 730 basis points, respectively, to 54.2% and 11.2%, on higher tariff and store costs.
Despite having many rivals, Lululemon’s productivity stands out in the sportswear space. Its sales per square foot were more than $1,400 in 2025, and its operating margins are around 20%.
Competition is ubiquitous in all of Lululemon’s key apparel categories. The firm faces challenges from firms like Athleta, Vuori, and Alo Yoga, and Nike is improving its competitiveness through its Skims partnership.
|
Metric
|
LULU
|
UAA
|
ADDYY
|
|---|---|---|---|
Price/Earnings (Normalized) | 9.49 | 47.25 | 19.87 |
Price/Book Value | 2.91 | 1.71 | 4.90 |
Price/Sales | 1.24 | 0.49 | 1.15 |
Price/Cash Flow | 7.03 | 223.54 | 10.98 |
|
Metric
|
LULU
|
UAA
|
ADDYY
|
|---|---|---|---|
Quick Ratio | 1.17 | 0.59 | 0.57 |
Current Ratio | 2.23 | 1.62 | 1.35 |
Interest Coverage | — | −5.63 | 6.68 |
|
Metric
|
LULU
|
UAA
|
ADDYY
|
|---|---|---|---|
Return on Assets (Normalized) | 19.04% | 1.07% | 7.29% |
Return on Equity (Normalized) | 33.07% | 2.93% | 25.80% |
Return on Invested Capital (Normalized) | 23.64% | 2.17% | 14.34% |
|
1-Day Chart
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United States