आपकी अनुमति से हम गोपनीयता-सीमित विश्लेषण का उपयोग करके समझते हैं कि कौन-सी शोध यात्राएँ उपयोगी हैं। हम विज्ञापन ट्रैकर या सत्र रिकॉर्डिंग नहीं चलाते। आप यह विकल्प प्राथमिकताओं में बदल सकते हैं। पढ़ें गोपनीयता नीति.
Quote this valuation with its source: Fair value, Potential value and the price at analysis.
FAQ
LULU — frequently asked questions
Is Lululemon Athletica Inc. overvalued?
In our latest published analysis dated 2026-05-19, LULU looks meaningfully undervalued. The price recorded at analysis is USD 119 versus our fair value of USD 228; the high endpoint is presented separately as potential value of USD 282. That implies roughly 91.7% upside to fair value at that date.
Our latest published report, analyzed 2026-05-19, gives LULU a fair value of USD 228 and a potential value of USD 282. The conclusion is triangulated across multiple valuation models and weighted by reliability for Lululemon Athletica Inc.'s archetype; it is a dated research output, not a live price.
Should I buy LULU now?
Our latest published rating for LULU, analyzed 2026-05-19, is Strong Buy. Lululemon Athletica Inc. looks meaningfully undervalued at the analysis-date price of USD 119 versus fair value of USD 228; potential value is USD 282. This is research for educational purposes, not personalized investment advice.
What are the biggest risks for LULU?
The dedicated bear-case section in our report analyzed 2026-05-19 documents Lululemon Athletica Inc.'s material risks, evidence, thresholds, and thesis-invalidation conditions. Scenario-specific explanations remain in that section so the report does not repeat or decontextualize them elsewhere.
What is LULU's rating?
Our latest published rating for LULU, analyzed 2026-05-19, is Strong Buy, with a published moat assessment of 6.5/10 (Narrow). It reflects our fair value of USD 228, the potential value of USD 282, and the price recorded at analysis (USD 119).
Lululemon remains a high-quality compounder with exceptional ROIC (25.8%) and solid operating margins (20%+). However, a near-term growth digestion phase—evidenced by expected negative EPS growth in the current year—requires anchoring revenue and earnings to realistic lower-single digit growth paths before assuming trend stabilization.
Lululemon remains a high-quality compounder with exceptional ROIC (25.8%) and solid operating margins (20%+). However, a near-term growth digestion phase—evidenced by expected negative in the current year—requires anchoring and earnings to realistic lower-single digit growth paths before assuming trend stabilization.
Consumer demand for premium athleisure remains structurally robust, and international market penetration accelerates rapidly.
हाउस सिफ़ारिश
Strong Buy, driven by the extreme dislocation between current implied expectations and the reality of a temporary earnings digestion phase.
कंपनी का अवलोकन
lululemon athletica inc., together with its subsidiaries, designs, distributes, and retails technical athletic apparel, footwear, and accessories for women and men under the lululemon brand in the United States, Canada, Mexico, China Mainland, Hong Kong, Taiwan, Macau, and internationally. It offers pants, shorts, tops, and jackets for athletic activities, such as yoga, running, training, and other activities. The company also provides fitness-inspired accessories. It sells its products through company-operated stores; seasonal stores, pop-ups, university campus retailers, and yoga and fitness studios; outlets; Like New, a re-commerce program; and its e-commerce website. The company was founded in 1998 and is based in Vancouver, Canada.
§2 बेयर केसEN
A severe recession combined with an accelerated shift in athleisure trends could force elevated markdowns, permanently impairing gross margins and compressing ROIC toward the cost of capital.
Increased competition and a highly promotional environment permanently decelerate top-line growth and compress valuation multiples to low-teens P/E levels.
Structural degradation in gross margin would demonstrate that brand pricing power is eroding against rising premium competitors, forcing aggressive markdown discounting and permanently damaging long-term unit economics.
वर्तमान:56.6% for the period ended 2026-01-31
चेतावनी यदिDeclining below 50.0% over a 12-month period
The highlighted base cell is anchored to valuation synthesis sensitivity reference ($228.48). It is the reference value for this grid, not a separate standalone fair-value claim.
If near-term EPSguidance misses but gross margins hold firm, continue accumulating. If gross margins severely break down, reassess the long-term structural moat conviction.
इन-लाइन
Hold
ट्रिगर: In-line results
If near-term EPSguidance misses but gross margins hold firm, continue accumulating. If gross margins severely break down, reassess the long-term structural moat conviction.
मिस
Reassess
ट्रिगर: Downside surprise
If near-term EPSguidance misses but gross margins hold firm, continue accumulating. If gross margins severely break down, reassess the long-term structural moat conviction.
आय की गुणवत्ता
If near-term EPSguidance misses but gross margins hold firm, continue accumulating. If gross margins severely break down, reassess the long-term structural moat conviction.
Warning level: Declining below 50.0% over a 12-month period. Structural degradation in gross margin would demonstrate that brand pricing power is eroding against rising premium competitors, forcing aggressive markdown discounting and permanently damaging long-term unit economics.
LULU trades at 9.0x forward earnings against a peer median of 26.5x; EV/EBITDA of 5.1x against a peer median of 20.6x; 6 peers.
§10 उद्योग और चक्रEN
चक्र चरण
Expansion
Normal capex phase with disciplined reinvestment, returning capital primarily through aggressive share repurchases.
बुल चक्र
Consumer demand for premium athleisure remains structurally robust, and international market penetration accelerates rapidly.
बेयर चक्र
A highly promotional retail environment erodes premium pricing power, and consumer wallet share shifts away from apparel.
स्थिति
Normal capex phase with disciplined reinvestment, returning capital primarily through aggressive share repurchases.
§11 स्थिति प्रबंधनEN
साइज़िंग
Appropriate for a core allocation given the extreme dislocation between the 25.8% ROIC and the market's implied -4.5% perpetual growth rate.
जोखिम
Trim sizing if the multiple approaches the high-end calibrated 25x, or if gross margins structurally decay below 50% for three consecutive quarters.
प्रवेश ट्रांच
स्तर
क्रिया
क्यों
Current / pullbacks
Immediate entry at current levels ($119.22), dynamically accumulating below $150.
Immediate entry at current levels ($119.22), dynamically accumulating below $150.
निकास ट्रांच
स्तर
क्रिया
Thesis break
Trim sizing if the multiple approaches the high-end calibrated 25x, or if gross margins structurally decay below 50% for three consecutive quarters.
§12 निवेशक दृष्टिकोणEN
Bull view
Buy
Strong Buy. The current valuation embeds unprecedented macro pessimism that wholly ignores the company's elite compounding history and highly resilient balance sheet.
Strong Buy. The current valuation embeds unprecedented macro pessimism that wholly ignores the company's elite compounding history and highly resilient balance sheet.
Reassess the thesis against the named valuation, risk, and quarterly checkpoint evidence in this report.
§15Your notes
Capture your own thesis, position size, and follow-up questions. Stays on this device, only you can see it.
China expansion falters due to geopolitical friction or domestic preference, permanently removing the primary long-term growth engine from the terminal valuation.
FV impact
Moderate
Trigger
24-36 months
Macro Demand Shock
Low
Prolonged consumer discretionary weakness stalls the men's category growth and causes consecutive quarters of negative comparable store sales in North America.
A severe drop in sales momentum would suggest brand fatigue in core product categories, exacerbating inventory imbalances and requiring deep promotional clearances that compress overall retail earnings.
वर्तमान:4.9% for the period ended 2026-01-31
चेतावनी यदिDecelerating below 2.0% over a 12-month period
Operating margin contraction would confirm that direct channel conversion softness and fixed retail store overhead are outpacing store productivity, eliminating the operating leverage underpinning premium valuation multiples.
वर्तमान:19.9% for the period ended 2026-01-31
चेतावनी यदिCompressing below 16.0% over a 12-month period
Diminishing capital returns would indicate that store footprint additions and international retail expansions are generating lower economic yields, undermining management's reinvestment thesis and long-term moat durability.
वर्तमान:25.8% as of the report's 2026-05-19 analysis date
चेतावनी यदिDeclining below 18.0% over a 12-month period
Failure to convert net accounting income into operational cash would reflect severe working capital misallocations and inventory bloat, restricting capital availability for share buybacks and store growth.
वर्तमान:1.015 as of the report's 2026-05-19 analysis date
चेतावनी यदिFalling below 0.85x over a 12-month period
Monitor the threat against the report checkpoints.
Fashion and category substitution risk
medium
Monitor
Monitor the threat against the report checkpoints.
Warning level: Decelerating below 2.0% over a 12-month period. A severe drop in sales momentum would suggest brand fatigue in core product categories, exacerbating inventory imbalances and requiring deep promotional clearances that compress overall retail earnings.
Warning level: Compressing below 16.0% over a 12-month period. Operating margin contraction would confirm that direct channel conversion softness and fixed retail store overhead are outpacing store productivity, eliminating the operating leverage underpinning premium valuation multiples.
वर्तमान25.8% as of the report's 2026-05-19 analysis date
यह क्यों मायने रखता है
Warning level: Declining below 18.0% over a 12-month period. Diminishing capital returns would indicate that store footprint additions and international retail expansions are generating lower economic yields, undermining management's reinvestment thesis and long-term moat durability.
वर्तमान1.015 as of the report's 2026-05-19 analysis date
यह क्यों मायने रखता है
Warning level: Falling below 0.85x over a 12-month period. Failure to convert net accounting income into operational cash would reflect severe working capital misallocations and inventory bloat, restricting capital availability for share buybacks and store growth.
