| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 91 | 8.5x | 17.3x | Top tier | |
Growth | 30 | 1.7% | 7.1% | Bottom tier | |
Quality | 87 | 21.2% | 4.5% | Top tier | |
Safety | 84 | 0.3x | 2.6x | Top tier | |
Capital Return | 46 | 0.00% | 0.06% | Around median | |
Momentum | 9 | -43.0% | -1.6% | Bottom tier | |
Sentiment | 86 | 21 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
0% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 5.00% as of 2026-10-23. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Lululemon Athletica sells athletic and technical apparel and accessories through a global store network and digital channels, with a clear reliance on women's apparel. In Q2 of fiscal 2026 (ending 2026-08), women's apparel generated $1.6 billion and represented 64.9% of revenue, versus $581.9 million and 23.5% for men's apparel, and $286.7 million and 11.6% for accessories and other categories. The company combines core franchises such as Define, Scuba, and ABC, and running and golf products, with newer launches such as Groove Wide-Leg, Align Foldover Jogger, Breezily, and Dance Studio Pant.
Revenue in Q2 of fiscal 2026 (ending 2026-08) was approximately $2.4 billion, down 4.3% year over year from $2.5 billion in Q2 of fiscal 2025 (ending 2025-08). Net income was $329.2 million and diluted earnings per share were $2.92, while operating cash flow reached $374.8 million. Gross margin increased to 60.5% from 58.5%, but operating margin declined to 18.8% from 20.7%, indicating that the improvement in gross profit did not translate into a comparable improvement in operating profitability.
The commercial challenge centers on weak traffic and conversion and an inconsistent product response. North America revenue declined 8% and comparable sales there fell 12%, while leggings sales declined approximately 20%. Mainland China revenue grew 4% on a reported basis but declined 2% in constant currency. In contrast, Rest of World revenue increased 5% on a reported basis and 6% in constant currency, and the company is working to increase reorders of successful products, reduce SKU density, and improve the store and digital-channel experience.
Q2 FY2026 (2026-08)
Last 12 months to 2026-08-02
When: 2026-12-10
Q3 fiscal 2026 revenue compared with the upper end of guidance of $2.320 billion
Q3 fiscal 2026 operating margin at the 6.5% threshold
Q3 fiscal 2026 diluted earnings per share compared with the upper end of $0.98
The no-growth value is $128, estimating current after-tax operating profit if it remains constant forever at a 9.1% discount rate. The industry-multiple value is $109 within a range of $86 to $176, valuing Lululemon like 22 peer companies using a median multiple of 12.4 times next year's earnings. The discounted cash flow model yields $105 within a range of $85 to $137, measuring the cash the company is expected to generate, while the median target of 9 analysts is $98 within a range of $70 to $115 and incorporates their growth expectations. The industry-multiple and discounted cash flow methods converge at $109 and $105, while the no-growth value rises to $128 and analyst targets fall to $98; analyst targets are inherently optimistic across the reference sample, while the discounted cash flow model tends to be conservative, and the neutral consensus coincided with five target cuts and no increases over 90 days.
Figures in the text are as of 2026-09-30; the live price is shown at the top of the page.
Revenue in Q2 of fiscal 2026 (ending 2026-08) declined 4.3% to $2.4 billion, with North America revenue down 8% and comparable sales down 12%. Management cited lower traffic, conversion, and average order value, as well as an inconsistent response to new launches. Groove Wide-Leg, Align Foldover Jogger, Dance Studio Pant, Define, and Scuba performed well, but they did not offset an approximately 20% decline in leggings sales.
Gross margin increased to 60.5% in Q2 of fiscal 2026 (ending 2026-08) from 58.5% in Q2 of fiscal 2025 (ending 2025-08). In contrast, operating margin declined to 18.8% from 20.7%, and net income was $329.2 million. Management also expects an operating margin of approximately 6.5% in Q3 of fiscal 2026, making the sustainability of operating profitability more important than the improvement in gross margin alone.
Automated analysis for informational purposes only — not investment advice.
North America revenue declined 8% in Q2 of fiscal 2026 (ending 2026-08), with comparable sales down 12%. In Mainland China, reported revenue increased 4% but declined 2% in constant currency, following pressure on the brand's image and weak Tmall activity. Rest of World grew 5% on a reported basis and 6% in constant currency, but it did not offset weakness in the two larger markets.
The company expects revenue between $10.350 billion and $10.500 billion and diluted earnings per share between $9.48 and $9.73 in fiscal 2026. For Q3 of fiscal 2026, it expects revenue between $2.290 billion and $2.320 billion and earnings per share between $0.93 and $0.98. It also expects an operating margin of approximately 6.5% in that quarter and an annual operating margin decline of approximately 530 basis points compared with fiscal 2025.
Operating cash flow was $2.0 billion and free cash flow was $1.4 billion during the last 12 months through 2026-08-02. Operating cash flow equaled 140% of net income of $1.4 billion, while share repurchases totaled $1.2 billion during the same period. The diluted share count declined 5.6% to 112.9 million shares in Q2 of fiscal 2026 (ending 2026-08), while total debt of $2.1 billion remained above cash and investments of $1.4 billion.