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Lululemon Athletica (LULU) Stock Price, News & Analysis

Lululemon Athletica logo
$318.13
-3.04 (-0.95%)
(As of 11/4/2024 ET)

About Lululemon Athletica Stock (NASDAQ:LULU)

Key Stats

Today's Range
$316.71
$322.43
50-Day Range
$247.18
$321.17
52-Week Range
$226.01
$516.39
Volume
2.24 million shs
Average Volume
2.11 million shs
Market Capitalization
$39.06 billion
P/E Ratio
24.59
Dividend Yield
N/A
Price Target
$354.55
Consensus Rating
Moderate Buy

Company Overview

Lululemon Athletica Inc. is a leading athletic apparel retailer headquartered in Vancouver, Canada. The company's mission is to provide high-quality, sustainable athletic wear that inspires and empowers people to live healthy and active lifestyles. Lululemon operates approximately 500 stores globally and sells its products online, primarily targeting women and men who practice yoga, run, cycle, or engage in other physical activities.

Lululemon is known for its premium athletic apparel, including yoga pants, leggings, sports bras, and shorts. The company also sells various accessories, including hats, bags, and yoga mats. Lululemon's products are designed with technical fabrics and innovative features to provide comfort, support, and style to its customers. In addition to its retail operations, Lululemon offers digital content and events, including virtual classes and workshops, to engage with its customers and promote wellness.

Lululemon's customer base includes fitness enthusiasts, athletes, and those who prioritize comfort and style in their daily lives. The company has a loyal following among yoga practitioners, who appreciate its commitment to sustainable and ethical manufacturing practices. Lululemon has expanded its men's product offerings and marketing to a broader audience to diversify its customer base.

Lululemon has a global presence, with stores in North America, Europe, Asia, and Australia. The company's headquarters are in Vancouver, Canada, and it has a significant presence in the United States, operating over 300 stores.

Lululemon's leadership team is led by Chief Executive Officer Calvin McDonald, who joined the company in 2018 after a successful career at Sephora and Sears Canada. McDonald has been credited with accelerating Lululemon's growth and expanding its product offerings. 

Lululemon's financial performance has been strong in recent years, with revenue growing at a compound annual growth rate of about 18%. The company's net income has been up yearly, indicating strong profitability. The company's debt-to-equity is reasonably low, and the company maintains significant enough assets to cover all liabilities. 

Lululemon's current price-to-earnings ratio is significantly higher than the industry average. This premium valuation reflects investors' confidence in the company's growth prospects and substantial brand equity. Lululemon's price-to-sales ratio is also higher than the industry average, indicating a premium valuation relative to its peers.

Lululemon operates in the highly competitive athletic apparel industry and is subject to changing consumer preferences and fashion trends. The sector includes a range of competitors, from large multi-brand retailers such as Nike and Adidas to smaller, niche brands that focus on specific sports or activities.

Despite this competition, Lululemon has managed to carve out a strong position in the market by focusing on high-quality products, exceptional customer service, and a unique brand image. The company has also benefited from the growing trend towards athleisure, which has driven demand for comfortable and stylish workout apparel that can be worn inside and outside the gym.

While the pandemic initially disrupted the company's supply chain and forced many of its stores to close, Lululemon was able to pivot quickly to online sales and leverage its strong digital capabilities to drive growth. The company's e-commerce sales grew by more than 150% in 2020, highlighting the strength of its online platform and the importance of digital channels in the modern retail landscape.

Looking ahead, Lululemon has several key growth opportunities that could help to drive the company's long-term success. One area of focus is expanding its presence in international markets, particularly in China, where the company has already seen strong sales growth. Lululemon plans to open additional stores in China and invest in digital marketing to build its brand awareness.

Another area of focus is expanding its product offerings beyond athletic apparel and into other categories, such as footwear and accessories. The company has already made some progress in this area, launching a line of sneakers and expanding its selection of bags and accessories. This move allows Lululemon to build a more diversified product portfolio and deepen its customer engagement.

Despite its many advantages, Lululemon faces risks and challenges that could impact its future performance. One significant challenge is the highly competitive nature of the athleisure market. Lululemon's competitors constantly introduce new products and innovations, which could impact its market share and pricing power.

Lululemon also faces risks related to its international operations. The company has been expanding into new markets, such as Asia, which exposes it to geopolitical and economic risks that could impact its revenue and profitability. For example, trade disputes or regulatory changes could affect Lululemon's ability to operate in certain countries.

Lululemon faces reputational risks related to ethical and social issues. The company has faced criticism for labor practices, environmental sustainability, diversity, and inclusion. Any negative publicity about these issues could impact Lululemon's brand image and sales.

Lululemon Athletica Stock Analysis - MarketRank™

See Top Rated MarketRank™ Stocks
87th Percentile Overall Score

LULU MarketRank™: 

Lululemon Athletica scored higher than 87% of companies evaluated by MarketBeat, and ranked 58th out of 294 stocks in the consumer discretionary sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

  • Consensus Rating

    Lululemon Athletica has received a consensus rating of Moderate Buy. The company's average rating score is 2.58, and is based on 20 buy ratings, 9 hold ratings, and 2 sell ratings.

  • Amount of Analyst Coverage

    Lululemon Athletica has been the subject of 19 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

  • Read more about Lululemon Athletica's stock forecast and price target.
  • Earnings Growth

    Earnings for Lululemon Athletica are expected to grow by 7.70% in the coming year, from $14.02 to $15.10 per share.

  • Price to Earnings Ratio vs. the Market

    The P/E ratio of Lululemon Athletica is 24.59, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 131.38.

  • Price to Earnings Ratio vs. Sector

    The P/E ratio of Lululemon Athletica is 24.59, which means that it is trading at a more expensive P/E ratio than the Consumer Discretionary sector average P/E ratio of about 16.06.

  • Price to Earnings Growth Ratio

    Lululemon Athletica has a PEG Ratio of 2.17. PEG Ratios above 1 indicate that a company could be overvalued.

  • Price to Book Value per Share Ratio

    Lululemon Athletica has a P/B Ratio of 9.49. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

  • Read more about Lululemon Athletica's valuation and earnings.
  • Percentage of Shares Shorted

    5.28% of the float of Lululemon Athletica has been sold short.
  • Short Interest Ratio / Days to Cover

    Lululemon Athletica has a short interest ratio ("days to cover") of 2.5, which is generally considered an acceptable ratio of short interest to trading volume.
  • Change versus previous month

    Short interest in Lululemon Athletica has recently increased by 3.29%, indicating that investor sentiment is decreasing.
  • Dividend Yield

    Lululemon Athletica does not currently pay a dividend.

  • Dividend Growth

    Lululemon Athletica does not have a long track record of dividend growth.

  • Percentage of Shares Shorted

    5.28% of the float of Lululemon Athletica has been sold short.
  • Short Interest Ratio / Days to Cover

    Lululemon Athletica has a short interest ratio ("days to cover") of 2.5, which is generally considered an acceptable ratio of short interest to trading volume.
  • Change versus previous month

    Short interest in Lululemon Athletica has recently increased by 3.29%, indicating that investor sentiment is decreasing.
  • News Sentiment

    Lululemon Athletica has a news sentiment score of 0.69. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.47 average news sentiment score of Consumer Discretionary companies.
  • News Coverage This Week

    MarketBeat has tracked 18 news articles for Lululemon Athletica this week, compared to 27 articles on an average week.
  • Search Interest

    61 people have searched for LULU on MarketBeat in the last 30 days. This is an increase of 5% compared to the previous 30 days.
  • MarketBeat Follows

    24 people have added Lululemon Athletica to their MarketBeat watchlist in the last 30 days. This is an increase of 41% compared to the previous 30 days.
  • Insider Buying vs. Insider Selling

    In the past three months, Lululemon Athletica insiders have bought 693.77% more of their company's stock than they have sold. Specifically, they have bought $1,040,000.00 in company stock and sold $131,021.00 in company stock.

  • Percentage Held by Insiders

    Only 0.48% of the stock of Lululemon Athletica is held by insiders.

  • Percentage Held by Institutions

    85.20% of the stock of Lululemon Athletica is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

  • Read more about Lululemon Athletica's insider trading history.
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LULU Stock News Headlines

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Lululemon's China Comeback, Analyst Sees 60% Q3 Growth
See More Headlines

LULU Stock Analysis - Frequently Asked Questions

Lululemon Athletica's stock was trading at $511.29 at the start of the year. Since then, LULU stock has decreased by 37.8% and is now trading at $318.13.
View the best growth stocks for 2024 here
.

Lululemon Athletica Inc. (NASDAQ:LULU) announced its quarterly earnings data on Thursday, August, 29th. The apparel retailer reported $3.15 EPS for the quarter, topping analysts' consensus estimates of $2.93 by $0.22. Lululemon Athletica's revenue for the quarter was up 9.1% compared to the same quarter last year.

Lululemon Athletica's Board of Directors approved a stock buyback program on Wednesday, June 5th 2024, which authorizes the company to repurchase $1,000,000,000 in outstanding shares, according to EventVestor. This means that the company could purchase up to 2.5% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's board believes its stock is undervalued.

Lululemon Athletica subsidiaries include MIRROR, Curiouser Products Inc, Lincoln Park LLC, Lulu Canadian Holding Inc., lululemon athletica australia holding Pty Ltd., lululemon athletica canada inc., lululemon athletica CH GmbH, and more.

Top institutional shareholders of Lululemon Athletica include International Assets Investment Management LLC (0.72%), Swedbank AB (0.29%), HS Management Partners LLC (0.25%) and River Road Asset Management LLC (0.24%). Insiders that own company stock include Calvin Mcdonald, Celeste Burgoyne, Meghan Frank, Nicole Neuburger, Kathryn Henry, Michelle Sun Choe, Kourtney Gibson and Martha A M Morfitt.
View institutional ownership trends
.

Shares of LULU stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

Based on aggregate information from My MarketBeat watchlists, some other companies that Lululemon Athletica investors own include NVIDIA (NVDA), Meta Platforms (META), Advanced Micro Devices (AMD), Tesla (TSLA), Salesforce (CRM), Netflix (NFLX) and PayPal (PYPL).

Company Calendar

Last Earnings
8/29/2024
Today
11/04/2024
Next Earnings (Estimated)
12/05/2024
Fiscal Year End
1/31/2025

Industry, Sector and Symbol

Industry
Apparel, finished products from fabrics & similar materials
Sub-Industry
Apparel
Current Symbol
NASDAQ:LULU
Employees
38,000
Year Founded
1998

Price Target and Rating

Average Stock Price Target
$354.55
High Stock Price Target
$540.00
Low Stock Price Target
$220.00
Potential Upside/Downside
+11.1%
Consensus Rating
Moderate Buy
Rating Score (0-4)
2.58
Research Coverage
31 Analysts

Profitability

Net Income
$1.55 billion
Pretax Margin
22.96%

Debt

Sales & Book Value

Annual Sales
$9.99 billion
Cash Flow
$16.99 per share
Book Value
$33.53 per share

Miscellaneous

Free Float
122,188,000
Market Cap
$39.17 billion
Optionable
Optionable
Beta
1.24

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This page (NASDAQ:LULU) was last updated on 11/4/2024 by MarketBeat.com Staff
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