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Lululemon Athletica Inc LULU

Morningstar Rating
$364.68 +2.89 (0.80%)
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Company Report

Lululemon’s Immense Popularity Is an Advantage, but Competition and Market Conditions Remain Threats

We think Lululemon has a solid plan to expand its product assortment and geographic reach while building its core business. While there are many firms looking to compete in its categories, we believe Lululemon benefits from the athleisure fashion trend and will continue to achieve premium pricing due to the brand’s popularity and the styling and quality of its products. Our narrow moat rating is based on the company's intangible brand asset.

Price vs Fair Value

LULU is trading at a 27% premium.
Price
$361.79
Fair Value
$978.00
Uncertainty
High
1-Star Price
$787.47
5-Star Price
$947.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Lululemon’s digital sales increased to about $5 billion in 2023 from less than $100 million in 2010 but its stores have remained very productive. Its sales per square foot of about $1,600 are extremely high.

Bears

Leggings and other key Lululemon items are offered by everyone from low-priced fast fashion to luxury apparel brands. The competitiveness of the sportswear industry continues to rise.

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News

Trading Information

Previous Close Price
$361.79
Day Range
$359.33366.19
52-Week Range
$326.93516.39
Bid/Ask
$362.00 / $364.66
Market Cap
$45.95 Bil
Volume/Avg
1,624 / 2.0 Mil

Key Statistics

Price/Earnings (Normalized)
27.59
Price/Sales
4.66
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
1.22%

Company Profile

Lululemon Athletica designs, distributes, and markets athletic apparel, footwear, and accessories for women, men, and girls. Lululemon offers pants, shorts, tops, and jackets for both leisure and athletic activities such as yoga and running. The company also sells fitness accessories, such as bags, yoga mats, and equipment. Lululemon sells its products through more than 680 company-owned stores in 19 countries, e-commerce, outlets, and wholesale accounts. The company was founded in 1998 and is based in Vancouver, Canada.
Sector
Consumer Cyclical
Industry
Apparel Retail
Stock Style Box
Mid Growth
Total Number of Employees
38,000

Competitors

Valuation

Metric
LULU
ADDYY
NKE
Price/Earnings (Normalized)
27.5942.1226.52
Price/Book Value
10.518.6310.17
Price/Sales
4.661.882.86
Price/Cash Flow
21.3638.7022.18
Price/Earnings
LULU
ADDYY
NKE

Financial Strength

Metric
LULU
ADDYY
NKE
Quick Ratio
1.560.531.67
Current Ratio
2.491.222.74
Interest Coverage
1.16
Quick Ratio
LULU
ADDYY
NKE

Profitability

Metric
LULU
ADDYY
NKE
Return on Assets (Normalized)
26.78%0.75%15.59%
Return on Equity (Normalized)
45.67%2.96%41.17%
Return on Invested Capital (Normalized)
34.23%2.15%21.67%
Return on Assets
LULU
ADDYY
NKE
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