# lululemon athletica inc. (LULU) — Stock CV

lululemon athletica inc. is a $10.9B consumer company. Revenue shrank 18.1% over the last year, it keeps 12¢ of every dollar of sales as profit, and its net debt equals ~0.5 years of free cash flow. It trades at 7.7× earnings — near the lowest of its own history.

> Lululemon Athletica designs, distributes, and markets athletic apparel, footwear, and accessories for women, men, and girls. The company offers pants, shorts, tops, and jackets for both leisure and athletic activities such as yoga and running.

## Identity

- **Ticker**: LULU
- **Sector**: Consumer Cyclical
- **Industry**: Apparel & Other Finishd Prods Of Fabrics & Similar Matl
- **Headquarters**: VANCOUVER, A1
- **Employees**: 39 000
- **Website**: https://www.lululemon.com
- **Market cap**: $10.9B
- **Last price**: $94.50
- **Financial profile**: Solid

## Vitals (TTM)

- **Revenue**: $23.3B
- **Net income**: $2.82B
- **Free cash flow**: $1.63B
- **Net debt**: $751M
- **P/E**: 7.7
- **Revenue growth (YoY)**: -18.1%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 100 |
| Growth | 32 |
| Profitability | 77 |
| Health | 70 |
| Quality | 70 |
| Moat | 86 |

## Qualifications (beginner checklist) — 9 of 10 passed

- [ ] Revenue growing — -18.1% YoY
- [x] Profitable — $2.82B TTM
- [x] Profit growing — +25.7% YoY
- [x] Generates cash — $1.63B TTM
- [x] Debt under control — ~0.5y of cash flow to repay
- [x] Established company — $10.9B market cap
- [x] Not printing shares — -12.8% shares over ~5y
- [x] Proven track record — 12/12 profitable years
- [x] Financially stable — Altman Z 3.5 — safe
- [x] Valuation not extreme — P/E 7.7

## Experience (career milestones)

- **Q2 2026** — 2 open-market insider purchases: ~8K shares bought by insiders
- **FY2024** — Best year on record: $3.92B net income
- **2024** — Lululemon Athletica Inc. agreed to acquire the operations and retail locations of its franchise partner in…
- **FY2023** — Positive free cash flow every year since: 5-year streak
- **2022** — Lululemon became the official outfitter for the Canadian Olympic and Paralympic teams in a deal that will…
- **FY2021** — Revenue crossed $10B: $14.3B for the year
- **Jun 29, 2020** — Capitalizing on a growing trend of people conducting virtual workouts at home instead of going to a gym due to the…
- **2019** — The company introduced a streetwear brand called Lab in select stores
- **Dec 24, 2018** — Lululemon Athletica became a Nasdaq-100 company on December 24, 2018
- **FY2016** — Profitable every year on record: 12 consecutive profitable years in our data
- **FY2016** — Revenue already above $1B: $5.40B in first reported year
- **2014** — Lululemon opened its first store in Europe, in Covent Garden, London
- **2007** — The company made its initial public offering in July 2007, raising $327.6 million by selling 18.2 million shares on…
- **1998** — Lululemon was founded in 1998 by Chip Wilson in Vancouver, British Columbia
- **1997** — Wilson had been doing yoga and had an idea to make yoga apparel for women using a proprietary skintight…

## Strengths

- High gross margin (56.1%)
- Could repay net debt from ~0.8 years of free cash flow
- Altman Z-Score 3.55 — low bankruptcy-risk zone

## Watch-outs

- Revenue shrinking 18.1% year over year
- Thin interest coverage (-47.8×)

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2023 | $22.2B | $3.35B | $2.26B |
| FY2024 | $24.4B | $3.92B | $2.29B |
| FY2025 | $25.8B | $3.57B | $492M |
| FY2026 | $25.9B | $3.29B | $1.28B |
| FY2027 | $7.36B | $719M | $399M |

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Source: https://stockcv.com/LULU — derived from company filings; may be delayed or incomplete. Information, not investment advice.