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lululemon athletica inc. (LULU)

Consumer Cyclical Cheap-ish & solid

Lululemon is a premium athletic apparel brand that designs high-end yoga-inspired clothing and accessories for active lifestyles.

$118.87

Is lululemon athletica inc. a good stock for a UK beginner?

The honest version: Lululemon is a premium athletic apparel brand that designs high-end yoga-inspired clothing and accessories for active lifestyles.

No rating · no target price · nothing for sale here
Price-52.3%
Priced in USD - as a UK investor your £ return also moves with the pound-to-dollar exchange rate, on top of the share price itself.
52-week range-47% past year
$118.87
Low $104.44High $225.98
Where today's price sits versus its past year - context, not a signal.
If you had put $1,000 into lululemon athletica inc.
$477-52%

Over about 2 years to 2026-07-31. This is the share price only; any dividends would add to it. And it's the USD return - as a UK investor your actual £ return also moves with the exchange rate. Past performance is not a guide to the future, and it could just as easily have fallen.

Market cap: The company's total value on the stock market - share price times the number of shares. Big = 'large-cap', small = 'small-cap'.
$13.50B
Avg volume: How many shares change hands on a typical day. Higher means it's easy to buy or exit without moving the price.
3.54M
Day range: The lowest and highest price the shares traded at during the latest day.
$117.87 – $121.00
52-week range: The lowest and highest the shares have traded over the past year - a sense of how wide the swings have been.
$104.44 – $225.98
P/E ratio: Price-to-earnings: the share price divided by yearly profit per share. Lower can mean cheaper; higher often means investors expect fast growth.
9.7
Dividend yield: The yearly dividend as a percentage of the share price - roughly the income you'd earn from dividends alone.
0.0%
Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down.
0.88
How bumpy is it?Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down. 0.88
Calm
Wild
Roughly in step with the market

Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.

Why has it been moving?▲ +1% past week · ▼ -47% past year

Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.

The bull case

Return to double-digit earnings growth

The bear case

Long-term shift in fashion trends away from athleisure

What does lululemon athletica inc. do?

Lululemon makes its money by selling high-quality leggings, tops, and sports gear directly to customers through its own shops and website. They have built a strong reputation for premium fabrics, which helps them maintain healthy profit margins compared to many other clothing retailers. Whether they can reignite growth is the big question, since recent figures show a significant slowdown in earnings compared to previous years.

VQGMI
Factor profile

On our factor screen it looks strongest on value and quality, and weakest on momentum.

Value: How cheap the stock looks versus profits, sales and assets (higher = cheaper). 81Quality: How profitable and financially healthy the company is (higher = stronger). 66Growth: How fast revenue and earnings are growing (higher = faster). 17Momentum: How the share price has been trending recently (higher = stronger recent run). 14Income: The dividend income on offer and how sustainable it looks (higher = more/steadier). 16
Quick checks
What's strong
  • Value screens high (81/100)
  • High profit margins on products
  • Strong brand recognition and customer loyalty
  • Efficient use of shareholder capital
What to watch
  • Growth screens low (17/100)
  • Momentum screens low (14/100)
  • Income screens low (16/100)
  • Intense competition in the sportswear market
  • Potential for changing fashion trends

What do lululemon athletica inc.'s numbers mean?

P/E
9.7
This shows how much you are paying for every pound of the company's annual profit; a lower number suggests the market is currently cautious about future growth.
Gross margin
55.7%
This indicates that for every pound of clothing sold, over 55 pence remains after covering the basic cost of making the items.
Return on equity
32.0%
This measures how efficiently the company uses the money invested by shareholders to generate profit, with 32% being a very strong sign of operational efficiency.
Revenue growth
4.3%
This tells us how much the total sales have increased over the last year, showing that the business is still growing, albeit at a much slower pace than before.

How much money does lululemon athletica inc. make?

Revenue and profit by quarter, and how much of each sale turns into profit.

RevenueNet income
$0$910.20M$1.82B$2.73B$3.64BQ2 25Q3 25Q4 25Q1 26Q2 26
Gross margin
55.7%
Net margin
13.0%
Return on equity
32.0%

Does lululemon athletica inc. pay a dividend?

No - lululemon athletica inc. doesn't currently pay a dividend, so the whole return would rest on the share price. Plenty of growing companies reinvest their profits instead of paying them out - neither approach is better or worse, they're just different.

More in Consumer Cyclical

Booking HoldingsExpedia GroupeBay Inc.Hilton Worldwide Holdings Inc.Yum! Brands, Inc.Las Vegas Sands Corp.Marriott International, Inc.Casey's General Stores, Inc.

What are the scenarios for lululemon athletica inc.?

An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.

$220$119$86today · $119▲ Bull · $134• Base · $119▼ Bear · $101in 1 yearILLUSTRATIVE · NOT A PREDICTION OR PRICE TARGET
Bull
+10% to +15%Strong holiday sales performance
Base
-5% to +5%Steady demand despite economic pressure
Bear
-10% to -20%Weaker consumer spending on luxury leisurewear

What are the pros and cons of lululemon athletica inc.?

3bull points
6bear points

How many points the write-up makes each way — a balance check, not a score or verdict.

The bull case3
  • High profit margins on products
  • Strong brand recognition and customer loyalty
  • Efficient use of shareholder capital
The catch3
  • Significant recent decline in earnings
  • No dividend payments for shareholders
  • High sensitivity to consumer spending habits
Key risks3
  • Intense competition in the sportswear market
  • Potential for changing fashion trends
  • Economic downturns reducing demand for premium goods
What would flip the thesis

The write-up's own warning lights — if these start happening, the case above changes.

Confidence: medium · data: USD · flags: none · Charts by TradingView Lightweight Charts™
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Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →

This plain-English summary was auto-generated on 2026-08-01 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.

Figures as of 2026-08-01. Prices may be delayed and numbers can go stale - always double-check before acting.