Free cash flow margins have contracted to 3.5% in 2026Q1, yet the company deployed $373.8M toward share repurchases, highlighting a disconnect between cash generation and capital return policies.
| Metric | TTM | Feb'26 | Feb'25 | Jan'24 | Jan'23 | Jan'22 | Jan'21 | Feb'20 | Feb'19 | Jan'18 | Jan'17 | Jan'16 | Feb'15 | Feb'14 | Feb'13 | Jan'12 | Jan'11 | Jan'10 | Feb'09 | Feb'08 | Jan'07 | Jan'06 |
|---|
| Cash from Operations | 1.94B | 1.6B | 2.27B | 2.3B | 966.46M | 1.39B | 803.34M | 669.32M | 742.78M | 489.34M | 386.39M | 297.54M | 314.45M | 278.34M | 280.11M | 203.62M | 180M | 117.96M | 46.44M | 36.48M | 25.45M | -10.28M |
| Operating CF Margin % | - | 14.43% | 21.46% | 23.87% | 11.92% | 22.2% | 18.25% | 16.82% | 22.59% | 18.47% | 16.48% | 14.44% | 17.5% | 17.49% | 20.44% | 20.34% | 25.29% | 26.05% | 13.14% | 13.28% | 17.09% | -12.22% |
| Operating CF Growth % | 219.11% | -29.49% | -1.02% | 137.58% | -30.43% | 72.92% | 20.02% | -9.89% | 51.79% | 26.64% | 29.86% | -5.38% | 12.97% | -0.63% | 37.57% | 13.12% | 52.59% | 154.02% | 27.29% | 43.35% | 347.51% | - |
| Net Income | 1.46B | 1.58B | 1.81B | 1.55B | 854.8M | 975.32M | 588.91M | 645.6M | 483.8M | 258.66M | 303.38M | 266.05M | 239.03M | 279.55M | 271.43M | 184.96M | 122.2M | 58.28M | 39.36M | 30.84M | 7.67M | 1.39M |
| Depreciation & Amortization | 517.03M | 496.23M | 446.52M | 379.38M | 291.79M | 224.21M | 185.48M | 161.93M | 122.48M | 108.23M | 87.7M | 73.38M | 58.36M | 49.07M | 43M | 30.26M | 24.61M | 20.83M | 15.82M | 8.29M | 4.59M | 2.47M |
| Stock-Based Compensation | 43.9M | 62.2M | 90.01M | 93.56M | 78.08M | 69.14M | 50.8M | 45.59M | 28.57M | 17.61M | 16.82M | 10.36M | 8.27M | 10.09M | 15.64M | 10.34M | 7.27M | 5.62M | 0 | 0 | 0 | 0 |
| Deferred Taxes | -53.38M | -53.38M | 57.45M | -28.38M | 3.04M | -5.18M | 34.91M | 24.13M | 16.79M | -11.42M | -17.56M | 11.14M | 2.09M | 820K | -6.45M | -693K | 11.23M | 387K | -6.44M | 1.8M | -3.08M | -174.9K |
| Other Non-Cash Items | -135.53M | -72.32M | -83.99M | 102.19M | 398.68M | -3.51M | -9.21M | -13.86M | -21.73M | 11.62M | -4.55M | -3.65M | -1.88M | -11.11M | -11.25M | -7.53M | -9.29M | 2.05M | 1.06M | 4.58M | 2.37M | 2.71M |
| Working Capital Changes | 104.19M | -409.44M | -51.9M | 199.22M | -659.92M | 129.13M | -47.55M | -194.07M | 112.88M | 104.63M | 603K | -59.74M | 8.58M | -50.07M | -32.26M | -13.73M | 23.97M | 30.79M | -3.36M | -9.03M | 13.9M | -16.68M |
| Change in Receivables | -20.58M | -65.75M | 1.63M | 6.58M | -58.99M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3.74M | -541K | -3.97M | 698.46K | 847.3K | -682.67K | -663.25K |
| Change in Inventory | 9.25M | -188.71M | -156.09M | 66.58M | -573.44M | -323.61M | -96.55M | -117.59M | -85.94M | -21.18M | -5.4M | -83.29M | -26.81M | -38.51M | -51.22M | -46.07M | -7.95M | 11.3M | -19.78M | -11.22M | -5.75M | -10.69M |
| Change in Payables | -14.32M | 45.86M | -57.04M | 177.37M | -107.28M | 117.66M | 82.66M | -14.81M | 71.96M | -1.55M | 14.08M | 1.25M | -2.2M | 11.63M | -13.48M | 7.86M | -5.17M | 6.03M | 0 | 0 | 0 | 0 |
| Cash from Investing | -694.13M | -662.12M | -798.17M | -654.13M | -569.94M | -427.89M | -695.53M | -278.41M | -242.79M | -173.39M | -149.51M | -143.49M | -119.73M | -106.41M | -93.23M | -122.31M | -42.84M | -16.31M | -46.8M | -35.24M | -13.35M | -8.31M |
| Capital Expenditures | -655.92M | -680.8M | -689.23M | -651.87M | -638.66M | -394.5M | -229.23M | -283.05M | -225.81M | -157.86M | -149.51M | -143.49M | -119.73M | -106.41M | -93.23M | -116.66M | -30.36M | -15.5M | -40.53M | -29.68M | -12.53M | -7.85M |
| CapEx % of Revenue | 5.85% | 6.13% | 6.51% | 6.78% | 7.87% | 6.31% | 5.21% | 7.11% | 6.87% | 5.96% | 6.38% | 6.96% | 6.66% | 6.69% | 6.8% | 11.66% | 4.27% | 3.42% | 11.47% | 10.8% | 8.42% | 9.33% |
| Acquisitions | 0 | 0 | -154.15M | 0 | 0 | 0 | -452.58M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -3.4M | -5.56M | -511.85K | -460.57K |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -38.21M | 18.68M | 45.2M | -2.27M | 68.72M | -10M | 882K | 4.29M | -771K | -8.32M | 0 | 0 | 0 | 0 | 0 | -5.65M | -12.48M | -810K | 0 | 0 | -305.81K | 0 |
| Cash from Financing | -1.12B | -1.21B | -1.65B | -548.83M | -467.49M | -844.99M | -80.79M | -177.17M | -590.21M | -97.86M | -26.61M | -272.49M | -149.08M | 8.91M | -5.49M | 15.36M | 13.7M | -2.65M | 13.46M | 31.41M | 668.86K | 20.09M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 222.44K | -3.95M |
| Equity Issued (Net) | -1.11B | -1.17B | -1.64B | -558.65M | -444M | -812.6M | -63.66M | -173.4M | -598.34M | -100.26M | -29.33M | -274.19M | -147.43M | 0 | 0 | 0 | 0 | 0 | 1.44M | 38.4M | 446.42K | 93.04M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -1.12B | -1.18B | -1.64B | -558.65M | -444M | -812.6M | -63.66M | -173.4M | -598.34M | -100.26M | -29.33M | -274.19M | -147.43M | 0 | 0 | 0 | 0 | 0 | 0 | -6.99M | 0 | 0 |
| Other Financing | -4.35M | -38.68M | -15.63M | 9.82M | -23.49M | -32.38M | -17.13M | -3.77M | 8.13M | 2.4M | 2.72M | 1.7M | -1.65M | 8.91M | -5.49M | 15.36M | 13.7M | -2.65M | 12.02M | -6.99M | 0 | -69.01M |
| Net Change in Cash | 189.46M | -177.13M | -259.63M | 1.09B | -105M | 109.35M | 57.01M | 212.19M | -109.18M | 255.66M | 233.36M | -163M | -34.17M | 108.47M | 180.74M | 93.15M | 156.71M | 102.78M | 4.25M | 37.05M | 12.15M | 1.23M |
| Free Cash Flow | 1.28B | 921.67M | 1.58B | 1.64B | 327.81M | 994.61M | 574.11M | 386.27M | 516.97M | 331.47M | 236.88M | 154.05M | 194.72M | 171.93M | 186.88M | 81.3M | 137.16M | 101.65M | 5.91M | 6.8M | 12.92M | -18.13M |
| FCF Margin % | 11.42% | 8.3% | 14.96% | 17.09% | 4.04% | 15.9% | 13.04% | 9.71% | 15.72% | 12.51% | 10.1% | 7.48% | 10.83% | 10.81% | 13.64% | 8.12% | 19.27% | 22.45% | 1.67% | 2.48% | 8.68% | -21.55% |
| FCF Growth % | -2.7% | -41.79% | -3.7% | 401.61% | -67.04% | 73.24% | 48.63% | -25.28% | 55.96% | 39.93% | 53.77% | -20.88% | 13.25% | -8% | 129.86% | -40.72% | 34.93% | 1620.8% | -13.19% | -47.32% | 171.25% | - |
| FCF per Share | 11.08 | 7.74 | 12.78 | 12.94 | 2.56 | 7.63 | 4.39 | 2.95 | 3.86 | 2.43 | 1.73 | 1.10 | 1.35 | 1.18 | 1.28 | 0.56 | 0.95 | 0.72 | 0.04 | 0.05 | 0.10 | -0.20 |
| FCF Conversion (FCF/Net Income) | 0.88x | 1.01x | 1.25x | 1.48x | 1.13x | 1.42x | 1.36x | 1.04x | 1.54x | 1.89x | 1.27x | 1.12x | 1.32x | 1.00x | 1.04x | 1.11x | 1.48x | 2.02x | 1.18x | 1.18x | 3.32x | -7.38x |
| Interest Paid | 0 | 0 | 478K | 234K | 116K | 12K | 0 | 325K | 1.39M | 8K | 5.18M | 52K | 14K | 117K | 206K | 501K | 424K | 157K | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 579.18M | 824.21M | 502.14M | 245.21M | 0 | 305.49M | 177.04M | 137.83M | 132.42M | 113.53M | 146.38M | 155.39M | 71.34M | 85.63M | 30.97M | 27.72M | 0 | 0 | 0 | 0 |
Inventory and margin volatility
As reported in recent financial filings, Lululemon's operating cash flow to net income ratio has fluctuated significantly, reaching 1.10 in 2026Q1, which highlights the inherent volatility in converting accounting profits into actual cash during periods of slowing top-line growth and inventory management challenges.
The divergence between net income and operating cash flow suggests that accrual-based accounting may be masking underlying operational friction. Investors should monitor whether the reliance on non-cash adjustments continues to grow as the company navigates a more mature, lower-growth environment.
Based on the company's quarterly data, free cash flow margins have contracted to 3.5% in 2026Q1, a stark decline from the 36.7% peak observed in 2023Q4, indicating that the business is struggling to maintain its historical cash-generative efficiency as revenue growth normalizes.
This sharp trajectory shift suggests that the company's capital-intensive expansion efforts are no longer yielding the same cash returns as in previous years. The inability to sustain high FCF margins may force a re-evaluation of the company's premium valuation multiple.
According to recent SEC filings, Lululemon experienced a $10.0M working capital outflow in 2026Q1, following a massive $504.7M inflow in 2025Q4, which underscores the extreme seasonality and inventory-related cash flow swings that characterize the company's current operational model.
The erratic nature of these working capital changes suggests that inventory procurement and liquidation cycles are becoming increasingly difficult to manage. This volatility warrants further investigation into whether the company is over-ordering in anticipation of demand that may not materialize.
As reported in financial statements, Lululemon deployed $373.8M toward share repurchases in 2026Q1, even as free cash flow dropped to $87.1M, suggesting that management is prioritizing shareholder returns over preserving liquidity during a period of decelerating growth.
This aggressive buyback strategy appears to be an attempt to support EPS in the face of slowing operational performance. Investors should consider whether this capital allocation is sustainable if cash generation continues to weaken in subsequent quarters.
Quick answers to the most common questions about buying LULU stock.
Lululemon Athletica Inc. (LULU) generated $1.60B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Lululemon Athletica Inc. (LULU) generated $921.7M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Lululemon Athletica Inc. (LULU) spent $680.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Lululemon Athletica Inc. (LULU) spent $1.18B on share repurchases. This shows the company's commitment to returning capital to its equity investors.