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Lululemon Athletica Inc LULU

Lululemon Athletica Inc scores good on business quality (7.1 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$94.50Oct 9, 2026
Business qualityGood
Next earningsDec 9, 2026, after the close
Insiders, 90 daysQuiet

Why it matters

  1. What Lululemon Athletica Inc does

    Lululemon designs and sells athletic apparel and accessories, making its money by selling premium-priced yoga pants, shorts, and activewear directly to fitness enthusiasts through its global retail stores and e-commerce platform.

  2. What it does best

    Lululemon dominates technical athletic apparel through fabric innovation and community-driven marketing. Its gross margin sits at 56.1%, placing it in the top quartile of its sector at the 81st percentile because customers willingly pay full price for proprietary textiles.

  3. The main risk

    Slowing growth and increased competition from legacy athletic giants cutting into market share threaten its volume expansion. The company posted revenue growth of just 4.9%, showing the core engine is cooling off from historical rates.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityFair

Operating margins sit at 17.8% alongside an ROE of 29.7%, delivering elite returns. The business scales efficiently, though near-term margin expansion faces pressure from moderating growth.

MoatStrong

The brand holds a consumer intangible asset moat, landing in the top quartile for gross margins at the 81st sector percentile. Loyal shoppers lock in through community integration that rivals struggle to copy quickly.

GrowthSteady

Revenue grew 4.9% to reach $11.1B, a sharp deceleration compared to its multi-year history as domestic expansion runs into a maturing market.

Financial healthStrong

Debt-free with $1.8B in cash and zero total debt, the balance sheet is pristine. Free cash flow reached $1.4B, meaning the business throws off heavy cash and gets stronger daily.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

No open market buys or unplanned sales by executives or directors.

Our sealed record on LULU

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is LULU a good business?

Lululemon Athletica Inc scores good on the Cluenex quality check (7.1 of 10), measured against its own industry. Profitability is fair, moat strong, growth steady and financial health strong.

Are insiders buying LULU?

In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.

When does LULU report earnings?

Dec 9, 2026, after the close.

For members

See LULU today

  • Today's verdict on LULU, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Lululemon Athletica Inc (LULU)”, https://cluenex.com/stocks/lulu/, data as of Oct 10, 2026.