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.
| 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 |
|---|
| Sales/Revenue | 11.2B | 11.1B | 10.59B | 9.62B | 8.11B | 6.26B | 4.4B | 3.98B | 3.29B | 2.65B | 2.34B | 2.06B | 1.8B | 1.59B | 1.37B | 1B | 711.7M | 452.9M | 353.49M | 274.71M | 148.88M | 84.13M |
| Revenue Growth % | 4.22% | 4.86% | 10.07% | 18.6% | 29.63% | 42.14% | 10.62% | 21.01% | 24.13% | 13% | 13.78% | 14.65% | 12.95% | 16.11% | 36.92% | 40.63% | 57.14% | 28.12% | 28.68% | 84.51% | 76.97% | - |
| Cost of Goods Sold | 4.96B | 4.82B | 4.32B | 4.01B | 3.62B | 2.65B | 1.94B | 1.76B | 1.47B | 1.25B | 1.14B | 1.06B | 883.03M | 751.11M | 607.53M | 431.57M | 316.76M | 229.81M | 174.42M | 128.41M | 72.9M | 41.18M |
| COGS % of Revenue | - | 43.4% | 40.78% | 41.69% | 44.61% | 42.32% | 44.02% | 44.13% | 44.77% | 47.2% | 48.83% | 51.61% | 49.13% | 47.2% | 44.33% | 43.12% | 44.51% | 50.74% | 49.34% | 46.74% | 48.97% | 48.95% |
| Gross Profit | 6.24B | 6.28B | 6.27B | 5.61B | 4.49B | 3.61B | 2.46B | 2.22B | 1.82B | 1.4B | 1.2B | 997.17M | 914.18M | 840.08M | 762.83M | 569.27M | 394.95M | 223.09M | 179.07M | 146.3M | 75.98M | 42.95M |
| Gross Margin % | 55.7% | 56.6% | 59.22% | 58.31% | 55.39% | 57.68% | 55.98% | 55.87% | 55.23% | 52.8% | 51.17% | 48.39% | 50.87% | 52.8% | 55.67% | 56.88% | 55.49% | 49.26% | 50.66% | 53.26% | 51.03% | 51.05% |
| Gross Profit Growth % | - | 0.21% | 11.79% | 24.87% | 24.49% | 46.45% | 10.82% | 22.41% | 29.85% | 16.6% | 20.3% | 9.08% | 8.82% | 10.13% | 34% | 44.14% | 77.04% | 24.58% | 22.4% | 92.55% | 76.9% | - |
| Operating Expenses | 4.19B | 4.07B | 3.77B | 3.48B | 3.16B | 2.28B | 1.64B | 1.33B | 1.11B | 942.79M | 778.47M | 628.09M | 538.15M | 448.72M | 386.39M | 282.39M | 214.56M | 136.54M | 122.5M | 93.38M | 59.49M | 39.23M |
| OpEx % of Revenue | - | 36.69% | 35.56% | 36.14% | 39.01% | 36.36% | 37.35% | 33.53% | 33.77% | 35.59% | 33.21% | 30.48% | 29.94% | 28.2% | 28.2% | 28.22% | 30.15% | 30.15% | 34.66% | 33.99% | 39.96% | 46.63% |
| Selling, General & Admin | 4.18B | 4.07B | 3.76B | 3.4B | 2.76B | 2.23B | 1.61B | 1.33B | 1.11B | 904.26M | 778.47M | 628.09M | 538.15M | 448.72M | 386.39M | 282.39M | 214.56M | 136.16M | 118.1M | 93.38M | 51.86M | 39.23M |
| SG&A % of Revenue | - | 36.63% | 35.53% | 35.32% | 34% | 35.56% | 36.55% | 33.53% | 33.77% | 34.13% | 33.21% | 30.48% | 29.94% | 28.2% | 28.2% | 28.22% | 30.15% | 30.06% | 33.41% | 33.99% | 34.83% | 46.63% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 6.96M | 2.73M | 79.51M | 406.49M | 50.18M | 35M | 29K | 72K | 38.52M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 379K | 4.4M | 0 | 7.63M | 0 |
| Operating Income | 2.04B | 2.21B | 2.51B | 2.13B | 1.33B | 1.33B | 819.99M | 889.11M | 705.84M | 456M | 421.15M | 369.08M | 376.03M | 391.36M | 376.44M | 286.96M | 180.39M | 86.55M | 56.56M | 51.55M | 16.22M | 3.73M |
| Operating Margin % | 18.21% | 19.91% | 23.67% | 22.17% | 16.38% | 21.31% | 18.63% | 22.34% | 21.46% | 17.21% | 17.96% | 17.91% | 20.92% | 24.6% | 27.47% | 28.67% | 25.35% | 19.11% | 16% | 18.77% | 10.9% | 4.43% |
| Operating Income Growth % | - | -11.78% | 17.49% | 60.54% | -0.37% | 62.61% | -7.77% | 25.97% | 54.79% | 8.27% | 14.11% | -1.85% | -3.92% | 3.96% | 31.18% | 59.08% | 108.43% | 53.01% | 9.72% | 217.75% | 335.33% | - |
| EBITDA | 2.43B | 2.71B | 2.95B | 2.51B | 1.62B | 1.56B | 1.01B | 1.05B | 828.32M | 564.24M | 508.85M | 442.46M | 434.4M | 440.43M | 419.44M | 317.22M | 205M | 107.38M | 72.39M | 59.84M | 20.81M | 6.19M |
| EBITDA Margin % | 21.7% | 24.38% | 27.88% | 26.11% | 19.98% | 24.89% | 22.84% | 26.41% | 25.19% | 21.3% | 21.7% | 21.47% | 24.17% | 27.68% | 30.61% | 31.7% | 28.8% | 23.71% | 20.48% | 21.78% | 13.98% | 7.36% |
| EBITDA Growth % | -18.34% | -8.31% | 17.52% | 55.05% | 4.02% | 54.91% | -4.34% | 26.89% | 46.8% | 10.88% | 15% | 1.86% | -1.37% | 5% | 32.22% | 54.74% | 90.92% | 48.34% | 20.96% | 187.56% | 236.03% | - |
| D&A (Non-Cash Add-back) | 381.7M | 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 |
| EBIT | 2.09B | 2.24B | 2.58B | 2.21B | 1.73B | 1.37B | 849.83M | 889.11M | 705.84M | 494.53M | 421.15M | 369.08M | 376.03M | 391.36M | 376.44M | 286.96M | 180.39M | 86.92M | 56.56M | 51.55M | 16.22M | 3.73M |
| Net Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 34.5M | 28.35M | 70.38M | 43.06M | 4.16M | 514K | -636K | 8.28M | 9.41M | 4M | 1.58M | -581K | 7.1M | 5.77M | 4.96M | 2.5M | 2.89M | 164K | 821.41K | 1.03M | 504.4K | 3.54K |
| Pretax Income | 2.07B | 2.24B | 2.58B | 2.18B | 1.33B | 1.33B | 819.35M | 897.39M | 715.25M | 460M | 422.73M | 368.5M | 383.13M | 397.13M | 381.4M | 289.46M | 183.28M | 86.71M | 57.39M | 52.58M | 16.73M | 3.73M |
| Pretax Margin % | 18.52% | 20.17% | 24.33% | 22.62% | 16.43% | 21.32% | 18.61% | 22.55% | 21.75% | 17.36% | 18.03% | 17.88% | 21.32% | 24.96% | 27.83% | 28.92% | 25.75% | 19.15% | 16.23% | 19.14% | 11.24% | 4.43% |
| Income Tax | 614.97M | 659.78M | 761.46M | 625.54M | 477.77M | 358.55M | 230.44M | 251.8M | 231.45M | 201.34M | 119.35M | 102.45M | 144.1M | 117.58M | 109.97M | 104.49M | 61.08M | 28.43M | 16.88M | 20.46M | 8.75M | 2.34M |
| Effective Tax Rate % | 29.64% | 29.47% | 29.56% | 28.75% | 35.85% | 26.88% | 28.12% | 28.06% | 32.36% | 43.77% | 28.23% | 27.8% | 37.61% | 29.61% | 28.83% | 36.1% | 33.33% | 32.79% | 29.42% | 38.92% | 52.32% | 62.63% |
| 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 | 270.56M | 184.06M | 121.85M | 58.28M | 39.36M | 30.84M | 7.67M | 1.39M |
| Net Margin % | 13.03% | 14.22% | 17.14% | 16.12% | 10.54% | 15.59% | 13.38% | 16.22% | 14.71% | 9.76% | 12.94% | 12.91% | 13.3% | 17.57% | 19.74% | 18.39% | 17.12% | 12.87% | 11.14% | 11.23% | 5.15% | 1.66% |
| Net Income Growth % | -19.26% | -12.97% | 17.06% | 81.35% | -12.36% | 65.61% | -8.78% | 33.44% | 87.04% | -14.74% | 14.03% | 11.3% | -14.49% | 3.32% | 46.99% | 51.06% | 109.07% | 48.06% | 27.63% | 302.31% | 449.91% | - |
| Net Income (Continuing) | 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 | 40.5M | 32.12M | 7.98M | 1.39M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.14M | -1.27M | -310.05K | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4.8M | 3.9M | 0 | 0 | 318.82K | 567.7K | 10K |
| EPS (Diluted) | 12.64 | 13.26 | 14.64 | 12.20 | 6.68 | 7.49 | 4.50 | 4.93 | 3.61 | 1.90 | 2.21 | 1.89 | 1.66 | 1.91 | 1.86 | 1.27 | 0.85 | 0.41 | 0.28 | 0.23 | 0.06 | 0.02 |
| EPS Growth % | -16.33% | -9.43% | 20% | 82.63% | -10.81% | 66.44% | -8.72% | 36.57% | 90% | -14.03% | 16.93% | 13.86% | -13.28% | 3.16% | 46.11% | 49.41% | 107.32% | 46.43% | 21.74% | 283.33% | 300% | - |
| EPS (Basic) | - | 13.27 | 14.67 | 12.23 | 6.70 | 7.52 | 4.52 | 4.95 | 3.63 | 1.90 | 2.21 | 1.90 | 1.66 | 1.93 | 1.88 | 1.29 | 0.86 | 0.41 | 0.28 | 0.23 | 0.06 | 0.02 |
| Diluted Shares Outstanding | 115.48M | 119.07M | 123.94M | 127.06M | 128.02M | 130.29M | 130.87M | 130.96M | 133.97M | 136.2M | 137.3M | 140.61M | 144.3M | 146.04M | 145.81M | 145.28M | 143.86M | 141.9M | 141.88M | 138.6M | 130.61M | 89.55M |
| Basic Shares Outstanding | 115.41M | 118.98M | 123.73M | 126.73M | 127.67M | 129.77M | 130.29M | 130.39M | 133.41M | 135.99M | 137.09M | 140.37M | 143.94M | 144.91M | 144M | 143.2M | 141.72M | 140.5M | 137.42M | 132.86M | 130.31M | 89.55M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Brand saturation and margin compression
According to recent financial disclosures, Lululemon's year-over-year revenue growth has decelerated to 4.3% in 2026Q1, marking a significant departure from the double-digit expansion observed in prior periods and suggesting that the brand is entering a more mature phase within its core North American markets.
The consistent decline in top-line growth rates indicates that the company's historical reliance on rapid store expansion and high-velocity product cycles may be reaching a saturation point. Investors should monitor whether international expansion efforts can effectively offset the cooling demand observed in domestic channels.
As reported in quarterly income statements, gross margins have compressed to 54.2% in 2026Q1, down from the 60.4% peak seen in 2024Q4, which may indicate rising input costs or a shift in product mix toward lower-margin categories like footwear and accessories.
The erosion of gross margin suggests that the company's pricing power is being tested by a more competitive retail environment. If this trend persists, it may imply that the brand's premium positioning is becoming increasingly sensitive to broader consumer discretionary spending shifts.
Based on the provided income statement data, operating margins have contracted sharply to 11.2% in 2026Q1, reflecting a failure to scale SG&A expenses efficiently as revenue growth slows, which contrasts with the 28.9% operating margin achieved during the 2024Q4 holiday peak.
The inability to maintain operating leverage suggests that fixed costs, particularly in marketing and store operations, are becoming a heavier burden on the bottom line. This development warrants further investigation into whether management can successfully rationalize its cost structure without compromising the brand's high-touch community engagement model.
Financial filings reveal that EPS growth has turned negative, with a 35% decline in 2026Q1, while stock-based compensation remains a persistent line item of $29.2M, potentially obscuring the true cash-generative capacity of the business during this period of operational transition.
The volatility in net income appears to be exacerbated by the ongoing restructuring of non-core segments and the impact of stock-based compensation on diluted share counts. Analysts should scrutinize whether these non-operating items are masking underlying weaknesses in the core apparel business's profitability.
While the company maintains a strong balance sheet, the recent trend of decelerating revenue growth and margin compression, as evidenced by the 2026Q1 figures, suggests that the market's current valuation premium may be vulnerable to a downward re-rating if growth fails to re-accelerate.
Short-term performance metrics indicate that the brand's transition into broader lifestyle categories may be diluting its historical exclusivity and pricing power. Investors should consider the possibility that the current slowdown is structural rather than cyclical, which would fundamentally alter the long-term earnings growth trajectory.
Quick answers to the most common questions about buying LULU stock.
For fiscal year 2025, Lululemon Athletica Inc. (LULU) reported total revenue of $11.10B. This represents a 13097.1% increase compared to $84.1M in 2005.
Lululemon Athletica Inc. (LULU) is profitable, generating $1.58B in net income for the fiscal year ending 2025 with a net profit margin of 14.2%.
Lululemon Athletica Inc. (LULU) reported an operating income of $2.21B, resulting in an operating profit margin of 19.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Lululemon Athletica Inc. (LULU) generated $6.28B in gross profit for the year, representing a gross profit margin of 56.6%. This demonstrates the company's core pricing power and production efficiency.