Lululemon Athletica Inc. (LULU) AI Stock Analysis

Lululemon Athletica Inc. designs and retails athletic apparel, footwear, and accessories tailored for women and men. Founded in 1998 and based in Vancouver, Canada, the company operates across two principal segments: Company-Operated Stores and Direct to Consumer. Its products serve healthy lifestyle and fitness activities such as yoga, running, and training, featuring lines of pants, shorts, tops, and jackets. Lululemon distributes items via company-operated stores, outlets, warehouse sales, temporary sites, mobile apps, and its lululemon.com website, alongside wholesale partnerships with yoga studios, health clubs, and fitness centers. As of January 30, 2022, the company operated 574 company-operated stores globally.

Lululemon increased annual revenue from $6.26B in FY2022 to $11.10B in FY2026, though annual sales expansion moderated from 42.1% in FY2022 to 4.9% in FY2026. Gross margin stood at 56.6% in FY2026 compared to a peak of 59.2% in FY2025, while operating margin was 19.9%. Net income reached $1.58B in FY2026 with diluted EPS of $13.30, down from $1.81B and $14.70 in FY2025. Over the trailing twelve months, revenue was $11.09B with an operating margin of 13.2% and EPS of $12.15. In the quarter ended July 31, 2026, quarterly revenue fell 4.3% year-over-year and quarterly earnings declined 5.9%.

As of July 31, 2026, Lululemon held $1.39B in cash and short-term investments alongside total debt of $2.14B, resulting in net debt of $751.4M. Shareholders' equity was $4.79B against total assets of $8.48B, yielding a debt-to-equity ratio of 0.45 and a current ratio of 2.19. In FY2026, operating cash flow was $1.60B, supporting capital expenditures of $680.8M and free cash flow of $921.7M. The company allocated $1.18B to share buybacks in FY2026, contributing to a 5-year share count reduction of 13.3%.

At $97.10, Lululemon trades at a trailing P/E of 8.0x, a forward P/E of 10.7x, and an EV-to-EBITDA of 4.9x. These multiples sit below the median of its S&P 500 Consumer Cyclical peers, which report a trailing P/E of 20.1x, forward P/E of 15.7x, and EV-to-EBITDA of 13.8x. The company's price-to-sales ratio is 1.0x versus 2.0x for the peer group. Over the past year, the stock fell 41.0% while the S&P 500 (SPY) gained 16.8%, and its 5-year return is -75.9% compared to 83.0% for the SPY.

Wall Street coverage consists of 1 Strong Buy, 0 Buys, 29 Holds, 1 Sell, and 4 Strong Sells. The mean price target is $104.91, representing an 8.0% premium over the last close of $97.10. For the fiscal year ending January 31, 2027, consensus models forecast revenue of $10.47B and EPS of $9.66, an earnings decline of 27.1%. For the following fiscal year, 25 analysts project revenue of $10.35B and EPS of $8.65. Lululemon has beaten EPS estimates in each of the last 4 quarters, and its next earnings release is scheduled for December 10, 2026.

This page is an AI-written research summary of Lululemon Athletica Inc. (LULU). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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