The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 93 | 8.5x | 20.8x | Top tier | |
Growth | 43 | 4.2% | 6.1% | Around median | |
Quality | 82 | 28.5% | 6.6% | Top tier | |
Safety | 80 | 0.2x | 0.7x | Top tier | |
Capital Return | 23 | — | 2.02% | Bottom tier | |
Momentum | 4 | -49.8% | 4.1% | Bottom tier | |
Sentiment | 82 | 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 Inc. (LULU) is a global leader in the premium athletic apparel and footwear sector, relying in its business model on direct-to-consumer sales through its network of physical stores and advanced digital platforms. The company generates its revenues from designing and distributing innovative apparel tailored for yoga, running, training, and daily activities for men and women, alongside athletic accessories. North America remains the company's primary and largest market, while Mainland China and other international markets represent geographic growth drivers in which the company actively seeks to expand its market share.
In the first quarter of fiscal year 2026, the company recorded mixed financial results; net revenue increased by 4% (or 2% in constant currency) to reach $2.5 billion, while comparable sales decreased by 2%. Gross margin declined by 410 basis points to 54.2% compared to 58.3% in the first quarter of the previous year, impacted by increased tariffs and markdowns. Net income for the quarter was $195 million, achieving diluted earnings per share of $1.69 compared to $2.60 in the same period last year.
On an annual and cumulative basis, the financial data for 2025 shows revenues of $11.1 billion, with a gross profit of $6.3 billion and net income of $1.6 billion (earnings per share of $13.26). The trailing twelve months (TTM) results reveal revenues of $9.9 billion and net income of $1.3 billion. These figures reflect the recent slowdown and cost pressures the company faces in its key markets, prompting management to update its operational plans to address traffic and demand challenges.
Lululemon Athletica Inc. (LULU) stock is currently trading within a 52-week range of $109.36 to $252.24, amid a general consensus among analysts rating the stock at Hold. The average analyst price target is $150.1, with a high estimate of $250 and a low estimate of $88, indicating that the stock's valuation reflects the prevailing market caution pending the assumption of duties by the new CEO Heidi O'Neill in September and verification of the success of the operational recovery plans.
Figures in the text are as of 2026-06-15; the live price is shown at the top of the page.
The company's stock declined by 10% to 12% in early June 2026 after management lowered its annual earnings and sales guidance for 2026. This cut is attributed to slowing traffic and sales in North American markets, alongside some new product launches failing to generate the desired consumer response. Additionally, increased tariffs, which negatively impacted the gross margin by 280 basis points, and the necessity of increasing seasonal markdowns, contributed to pressuring profit margins and raising investor concern.
The company announced the appointment of Heidi O'Neill as the new CEO, and she is officially scheduled to join the company to assume her leadership duties in September 2026. The current interim management, led by Meghan Frank and Andre Maestrini, is working on executing an urgent action plan to improve performance in North America and stabilize business foundations to facilitate the leadership transition. Management is confident that Heidi's extensive experience and passion for products will enable the company to regain its long-term growth momentum.
Mainland China recorded a very strong performance in the first quarter of 2026, with revenue growing by 30% (or 23% in constant currency) supported by the timing of the Chinese New Year, which added 8 percentage points to growth. Although a temporary slowdown occurred at the end of the first quarter due to fleeting negative media comments, momentum has returned to improve, and the company expects annual growth of about 20% in China. In the rest of the world, revenues grew by 13% with the opening of the first store in Greece and plans to expand into India later this year.
Automated analysis for informational purposes only — not investment advice.
Lululemon is shortening its core product development cycle from 18-24 months to 15-16 months, while striving to reduce it further to 12-14 months in the future. The company has also increased its quick-turn manufacturing (Chase capabilities) by 20% compared to last year, allowing it to quickly reorder successful styles like Groove pants and Define jackets. These efforts are accompanied by reducing the number of store stock keeping units (SKUs) by 15% to offer a clearer and more premium shopping experience to consumers.
For the second quarter of 2026, the company expects revenues ranging between $2.45 billion and $2.475 billion (a decline of 2% to 3%), with earnings per share between $1.76 and $1.81. For the full year, the guidance was lowered to revenues between $11 billion and $11.15 billion, and diluted earnings per share between $10.95 and $11.15. These cautious estimates reflect a high single-digit percentage decline in North American sales and tariff pressures expected to amount to 30 basis points over the course of the year.