| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 94 | 8.1x | 17.8x | Top tier | |
Growth | 42 | 1.7% | 7.1% | Around median | |
Quality | 87 | 21.2% | 4.5% | Top tier | |
Safety | 84 | 0.3x | 2.6x | Top tier | |
Capital Return | 65 | — | 2.12% | Around median | |
Momentum | 6 | -24.0% | 2.9% | Bottom tier | |
Sentiment | 96 | 19 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, 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 apparel, footwear, and accessories through stores and digital channels, focusing on yoga, running, tennis, golf, training, and everyday wear categories. Its core franchises and products include Align, Groove, Define, Fast & Free, Swiftly, Metal Vent, and Daydrift, while sales are supported by launching new collections, activating sports communities, and geographic expansion. In Q1 FY2027, the digital channel represented $1.0 billion, or 40% of revenue of $2.5 billion, while the store count reached 816 after adding 46 net new stores compared with the same period.
In Q2 FY2026, revenue was $2.42 billion, down 4%, and comparable sales declined 9%. Gross profit according to EDGAR data was approximately $1.5 billion, mathematically equivalent to about 62% of revenue, but this figure benefited from a $134.5 million tariff refund that added 560 basis points to gross and operating margins; therefore, it does not fully reflect underlying profitability. Net income was $329.2 million, or approximately 13.6% of revenue, and diluted earnings per share were $2.92, including a nonrecurring benefit of $0.86 per share.
Regional divergence was the most notable feature of Q2 FY2026: Americas revenue declined 8% and comparable sales fell 12%, while the international business grew 4%. This followed strong growth in Mainland China of 30%, or 23% in constant currency, in Q1 FY2027, compared with a 3% decline in North America revenue and a 6% decrease in comparable sales. On a trailing twelve-month basis in 2026, the company recorded revenue of $11.1 billion, gross profit of $6.2 billion, and net income of $1.4 billion.
The average analyst price target is $109.38, approximately 52% below the 52-week range high of $225.98, while the target range is extremely wide, extending from $70 to $250, and the consensus rates the stock as Hold. September 2026 news indicates an earnings multiple of approximately 8.3 times and a free cash flow yield of 12.7%, but the revaluation reflects reduced FY2026 guidance and contracting comparable sales and margins, not merely temporary market pessimism. The valuation therefore combines seemingly low multiples with high risks to earnings sustainability, which explains the dispersion in analyst targets and why the lowest extends to $70 even though the highest reaches $250.
Figures in the text are as of 2026-09-12; the live price is shown at the top of the page.
The decline followed Lululemon's reduction of its FY2026 guidance to revenue of between $10.350 billion and $10.500 billion and earnings per share of between $9.48 and $9.73. Q2 FY2026 results showed that revenue declined 4% to $2.42 billion and comparable sales fell 9%. Weakness was more pronounced in the Americas, where revenue decreased 8% and comparable sales declined 12%, so the market repriced the company as a high-risk operational turnaround.
In Q1 FY2027, Mainland China revenue increased 30%, or 23% in constant currency, and comparable sales grew 13%. The timing shift of Chinese New Year added eight percentage points to the revenue growth rate, so underlying growth was lower than the reported figure. During the June 4, 2026 call, management maintained its forecast for Mainland China growth of approximately 20% during FY2026, but 4% growth in the international business in Q2 FY2026 was insufficient to offset the contraction in the Americas.
Fast & Free, Swiftly, Metal Vent, Daydrift, and Define generated a positive response in Q1 FY2027, while Groove continued to deliver strong sales according to management. The company increased the share of new products from 23% in the previous year to approximately 30%, targeting 35% during the year, and is increasing the volume of reorders for successful styles by 20%. It also shortened the development cycle from 18–24 months to 15–16 months and is targeting 12–14 months, but acknowledged that the new look of yoga campaign did not achieve the desired impact on the rest of the assortment.
Automated analysis for informational purposes only — not investment advice.
In Q1 FY2027, gross margin declined 410 basis points to 54.2% due to tariffs, markdowns, and the underabsorption of fixed costs, despite benefiting by 100 basis points from efficiency initiatives. The total negative impact of tariffs was 280 basis points, and markdowns increased by 40 basis points, while operating margin declined to 11.2% from 18.5%. In Q2 FY2026, a $134.5 million tariff refund added approximately 560 basis points to gross and operating margins, meaning that reported profitability received nonrecurring support.
The company ended Q1 FY2027 with cash and cash equivalents of $1.5 billion, in addition to approximately $600 million of available capacity under its revolving credit facility. During the quarter, it repurchased approximately 2.2 million shares at an average of $165 per share. Approximately $1 billion remained under the repurchase program, and management said that share repurchases remain its preferred method of returning capital to shareholders.
The average price target is $109.38, compared with a high target of $250 and a low target of $70, reflecting significant divergence in estimates of the recovery trajectory. The average is substantially below the 52-week range high of $225.98, while September 2026 news indicates an earnings multiple of approximately 8.3 times. The Hold consensus balances the appeal of the low multiple against the risks of reduced guidance and declining comparable sales and margins, and therefore does not provide an explicit Buy or Sell position.
