Lululemon is currently navigating a transition from high-growth expansion to a more mature operational phase, characterized by significant margin compression and slowing revenue growth.
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth has decelerated to 4.3% in 2026Q1, while operating margins have compressed sharply to 11.2% from the 28.9% peak observed in 2024Q4.
Lululemon has a strong competitive moat, supported by its premium brand positioning and loyal customer base.
The company maintains premium pricing power, allowing it to sustain high margins despite market fluctuations.
Lululemon is strategically growing its men's apparel segment, diversifying its revenue streams beyond women's activewear.
Trailing total returns as of 11/8/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q4 2026Latest Sep 3, 2026 | $2.92+63.1% vs $1.79 | $2.4B-1.7% vs $2.5B |
Q3 2026 Jun 4, 2026 | $1.69+1.2% vs $1.67 | $2.5B+1.4% vs $2.4B |
Q2 2026 Mar 17, 2026 | $5.01+5.3% vs $4.76 | $3.6B+1.8% vs $3.6B |
Q4 2025 Dec 11, 2025 | $2.59+16.7% vs $2.22 | $2.6B+3.4% vs $2.5B |
Lululemon offers growth and turnaround potential at a lower valuation, but there is reason to be worried about its future. McDonald's provides a more established business model and the ability to reward shareholders through dividends and buybacks.
Dutch Bros continues its rapid expansion across the United States, fueled by its popular drive-thru model and proprietary energy drink segment. Lululemon maintains robust profitability and high net margins despite navigating significant leadership transitions and supply chain complexities.
Our top performer in the third quarter was TVA Group, which gained 46.7%. TVA's first-half earnings reached levels not seen in over a decade. Intercontinental Exchange advanced 23.5% in Q3, validating our view in Scorecard 54 that the regulatory panic surrounding perpetual futures was overdone. Portfolio stalwart Visa Inc. was our third-best contributor in Q3, advancing 4.7% as payment volumes and revenues sustained their double-digit growth.
lululemon (LULU) faces sharp sales declines, margin compression, and competitive headwinds, yet I believe the brand's core value remains intact. LULU fundamentals show $1.4B cash, no debt, aggressive buybacks, and insider buying, supporting resilience despite recent setbacks. Sales declines stem from failed product launches, market saturation, and customer alienation, but I see these as fixable with renewed product focus.
Benchmark LULU against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Lululemon Athletica Inc. (LULU)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $110.79 | $12.58B | 8.82 | 4.86% | 12.78% | 29.73% | — | |
| $38.59 | $57.11B | 18.52 | 0.19% | 6.74% | 21.24% | 4.21% | |
| $5.28 | $2.25B | -4.79 | -3.86% | -9.79% | -33.1% | — | |
| $151.86 | $7.55B | 10.96 | -1.5% | 16.2% | 48.76% | — | |
| $89.95 | $4.15B | -24.54 | 3.44% | -1.89% | -3.49% | 0.17% | |
| $376.56 | $22.97B | 21.39 | 14.63% | 12.56% | 38.35% | 0.92% |
Lululemon Athletica Inc. (LULU) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Lululemon Athletica Inc. (LULU) SEC filings — annual & quarterly reports (10-K, 10-Q)
Sep 3, 2026·SEC
Aug 13, 2026·SEC
Jun 4, 2026·SEC
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Lululemon Athletica Inc. (LULU) stock FAQ — growth, dividends, profitability & financials explained
Lululemon Athletica Inc. (LULU) reported $11.10B in revenue in fiscal year 2025, which is also its trailing twelve months. That is 13097% more than the $84.1M of fiscal year 2005.
Lululemon Athletica Inc. (LULU) grew revenue by 1.7% over the trailing twelve months, compared with the twelve months before.
Yes. Lululemon Athletica Inc. (LULU) earned $1.42B in net income over the trailing twelve months (a 12.8% net margin).
Lululemon Athletica Inc. (LULU) had a return on equity (ROE) of 29.7% over the trailing twelve months. That is well above the market's typical 10-15%.
Lululemon Athletica Inc. (LULU) generated $1.35B in free cash flow over the trailing twelve months.
