Lululemon Athletica inc.

Lululemon Athletica inc.

LULU

Market Cap$26.1B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Lululemon Athletica inc.Lululemon Athletica inc.15.2-42%2.60.4

Earnings Call Q1 2025

June 5, 2025 - AI Summary

Revenue Growth and Guidance: Lululemon reported a 7% increase in total revenue for Q1 2025, reaching $2.4 billion. The company maintained its full-year revenue guidance of $11.15 billion to $11.3 billion, implying an annual growth rate of 5% to 7%. This includes an expected growth range of 7% to 8% for the second quarter.
Gross Margin and Cost Pressures: The gross margin for Q1 improved to 58.3%, up from 57.7% in the previous year. However, the guidance for the full year now expects a 110 basis point decrease in gross margin, primarily due to increased tariffs and higher markdowns. These pressures raise concerns about profitability going forward.
Tariff Impact and Mitigation Strategies: Management highlighted ongoing challenges from increased tariffs, especially a 30% increment on China and a 10% rise on other sourcing countries. To mitigate these costs, the company plans to implement modest price increases on select items and pursue efficiencies in its supply chain. This context indicates Lululemon is proactively managing pricing while seeking to maintain profitability.

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$430.00

Target Price by Analysts

85.7% upsideLululemon Athletica inc. Target Price DetailsTarget Price
$493.06

Current Fair Value

112.9% upside

Undervalued by 112.9% based on the discounted cash flow analysis.

Share Statistics

Market cap$26.10 Billion
Enterprise Value$26.49 Billion
Dividend Yield$0 (0%)
Earnings per Share$14.67
Beta1.26
Outstanding Shares120,632,000

Return

Return on Equity-
Return on Assets-
Return on Invested Capital-

Valuation & Multiples

P/E Ratio15.18
PEG-712.35
Price to Sales2.6
Price to Book Ratio7.99
Enterprise Value to Revenue2.46
Enterprise Value to EBIT10.5
Enterprise Value to Net Income14
Total Debt to Enterprise0.06
Debt to Equity0.4

Revenue Sources

No data

Insider Trades

ESG Score

No data

About Lululemon Athletica inc.

CEO: Calvin McDonald