About lululemon athletica inc.
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.
lululemon athletica inc. (LULU) is a Consumer Cyclical company in the Apparel Retail industry with a market capitalisation of $11B. The stock trades at 8.15x trailing earnings.
- Sector
- Consumer Cyclical
- Industry
- Apparel Retail
- Market cap
- $11B
- P/E ratio
- 8.15
- Forward P/E
- 10.92
- EPS (TTM)
- $12.15
- Revenue (TTM)
- $11.1B
- Free cash flow
- $1.1B
- Profit margin
- 12.8%
- Beta
- 0.86
- Shares outstanding
- 105.6M
Financial health: Strong7.5/10
6 strengths, 2 concerns. Weakest points: revenue growth, earnings growth.
- Current ratio: 2.26 (Strong, benchmark > 1.5) — Short-term assets cover 2.26x short-term liabilities, against Graham's 1.5x floor. It has been broadly flat over the last 4 years.
- Return on equity: 30.9% (Strong, benchmark > 15%) — Earns 30.9% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 54.9% (Strong, benchmark > 40%) — Keeps 54.9% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 12.8% (Strong, benchmark > 10%) — Turns 12.8% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $921.7M (Strong, benchmark positive) — Generated $921.7M of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: -4.3% (Concern, benchmark > 10%) — Revenue changed -4.3% year on year, well short of the > 10% mark.
- Earnings growth: -5.9% (Concern, benchmark > 10%) — Earnings changed -5.9% year on year, well short of the > 10% mark.
- PEG ratio: 1.00 (Strong, benchmark < 1) — At 1.00, the price looks cheap relative to expected growth — Lynch treated 1.0 as fair value.