NASDAQ · LULU

Lululemon Athletica Inc.

Consumer Cyclical · Apparel - Retail

$98.97▼ 0.43% ($0.42)today

As of 1:31 PM ET

52-week

$95.35$225.98

Market cap

$11.24B

P/E

What the market price implies · Reverse DCF

To support a price of $98.97, this model requires revenue to grow by -4.06%/yr over the next 10 years, compounded annually.

Historical revenue grew by 15.42%/yr over the past 4 years. The required annual growth rate is 19.47 percentage points lower.

Selected forecast · Base scenario

4.5%/yr · actual 10-year annualized revenue growth

Year 1 growth: 7.05%

Market-implied · Base operating assumptions + edited margins

-4.06%/yr · flat 10-year annualized revenue growth

Reverse DCF solves revenue growth itself using Base operating assumptions and your edited margins. Changing forecast growth alone does not change the implied rate. This is a model-implied requirement, not an analyst forecast.

Valuation

Recommended · Revenue & margin DCF

Price used

$98.97

Estimated value / share

$170.63

Base scenario

This estimate is 72.41% above the price used.

USD · TTM ending 2026-08-02

Year 1 growth 7.05% · Ending margin 17.76% · Discount rate 9.75%

Assumption scenarios, not statistical confidence intervals.

Method, dates & sources

Estimated from future revenue, operating margins, and the investment needed to support them.

Price timestamp: Sep 18, 2026, 5:31 PM UTC
Financial statement period: TTM ending 2026-08-02
Data refreshed: Sep 18, 2026, 12:55 PM UTC · cache

Why this method?

FCFF is positive, but it is still too unstable and too short-lived to anchor even a normalized FCFF DCF. Use revenue and margin assumptions instead of compounding current FCFF.

Is FCFF positive and has it been for 3+ consecutive years? 3 consecutive positive FCFF years are available.

Is FCFF stable (not swinging >30% year to year)? The largest recent FCFF swing is 1035.1%.

Do you have 5+ years of positive FCFF history? Only 3 consecutive positive FCFF years are available.

Price vs Fundamentals

Why The Stock Is Moving

Mixed / unclearLow confidence

1Y Price: -39.2%Revenue (TTM): 1.74%FCF (TTM): 15.94%P/FCF: 0th pct

What changed

The stock fell 39.2% over the last year. Revenue grew 1.74% over the trailing twelve months. Operating margin moved from 22.88% to 17.76%. Free cash flow grew 15.94% over the trailing twelve months.

What the market seems to be pricing

The stock has moved lower with no clear directional signal from operating metrics. The operating data does not yet tell a clear story — the move may reflect sentiment, sector rotation, or macro factors rather than company-specific earnings power.

What would invalidate this read

Operating margin currently stands at 17.76%. A decisive move in revenue — currently up 1.74% — would be the clearest signal to resolve the ambiguity.

Performance

Return analysis

Company profile

Lululemon Athletica Inc., alongside its subsidiaries, specializes in the design, global distribution, and retail of athletic apparel and accessories for both women and men.

CEOHeidi O'Neill

SectorConsumer Cyclical

IndustryApparel - Retail

Employees39,000

IPO dateJul 27, 2007

https://corporate.lululemon.com

Market multiples

Forward P/E—

EV/EBITDA7.79

Enterprise value$21.3B

Stock splits

Jul 12, 2011↑ Forward

Every 1 shares became 2

+100%

Profitability & growth

Revenue growth-4.34%

Gross margin (FY2025)56.6%▼2.6ppvs FY2024

Operating margin (FY2025)19.91%▼3.8ppvs FY2024

ROE30.9%▼3.1ppvs FY2025

Analyst consensus

RatingHold

Target price$97.67▼1.31%

Buy

Hold

Sell

Analyst ratings tend to be lagging indicators. Use as one signal among many.

Earnings

Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.

Next report

Dec 10, 2026

Q4 FY26 · EPS est $0.97 · Revenue est $2.31B

View