Is the business good?
How good a business is LULU?
Lululemon Athletica earns 49% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
49%
Return on invested capital · cost of capital 9.0% · 40 points above what the capital costs: growth creates value
- Operating margin
- 18%
Operating margin · Apparel Retail median 11% · 12 months to Q1 2026
- Cash conversion
- 0.88×
Cash conversion · 0.73× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- −4.4%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 19% |
| FY2021 | 21% |
| FY2022 | 16% |
| FY2023 | 22% |
| FY2024 | 24% |
| FY2025 | 20% |
Details›
- Gross margin12 months to Q1 2026
- 56%
- Operating margin12 months to Q1 2026
- 18%
- Net margin12 months to Q1 2026
- 13%
- Free cash flow margin
- 11%
- Revenue, trailing twelve months
- $11.2B
- Free cash flow, trailing twelve months
- $1.28B
- Net income, trailing twelve months
- $1.46B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 49%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.