LULU

Lululemon Athletica Inc.

$201.87BuyTarget $297.49Report: Jan 30, 2026Consumer Cyclical • Apparel - Retail • Mature Compounder

Price History

Pelican View

Current$201.87+47.4%

Rec: BuyConviction: Medium

Entry Target

$201.87

(0% above current)

Fair Value

$297.49

(47% above current)

Stop Loss

$159.25

(21% below current)

Position Size

Half

Time Horizon

Long-Term

Key Metrics

Market Data

52 Week High$423.32

52 Week Low$159.25

Avg. 3 Month Volume4.01M

Efficiency

LTM Gross MarginN/A

LTM EBITDA MarginN/A

LTM EBIT MarginN/A

LTM Operating MarginN/A

LTM ROAN/A

LTM ROEN/A

LTM ROICN/A

LTM ROCEN/A

Capital Structure

Market Cap (MM)$0

Enterprise Value (MM)$0

Shares OutstandingN/A

Total Debt (MM)N/A

Cash & Equivalents (MM)N/A

LTM Net Debt (MM)N/A

LTM Net Debt/EBITDAN/A

Growth

TTM Rev. GrowthN/A

Last 3-Yr Rev. CAGRN/A

Last 3-Yr EBITDA CAGRN/A

Last 3-Yr EPS CAGRN/A

Valuation

Street Target Price$201.30

LTM EV/RevenueN/A

LTM EV/Gross ProfitN/A

LTM EV/EBITN/A

LTM EV/EBITDAN/A

LTM P/EN/A

LTM EV/FCFN/A

LTM P/FCFN/A

LTM P/TBN/A

LTM P/BN/A

Dividend YieldN/A

Payout RatioN/A

About the Company

lululemon athletica inc. is principally a designer, distributor, and retailer of technical athletic apparel, footwear, and accessories. The company has a vision to create transformative products and experiences that build meaningful connections, unlocking greater possibility and wellbeing for all. Since inception, the company has fostered a distinctive corporate culture promoting core values including taking personal responsibility, acting with courage, valuing connection and inclusion, and choosing to have fun. These values attract passionate and motivated employees driven to achieve personal and professional goals, sharing the purpose 'to elevate human potential by helping people feel their best.'

Revenue Generation

The company generates revenue primarily through the sale of technical athletic apparel, footwear, and accessories via an omni-channel retail model. Revenue is derived from company-operated physical retail locations and e-commerce services through websites, other region-specific websites, digital marketplaces, and mobile apps. The company operates a combination of physical retail locations and e-commerce services, with physical retail locations serving as a key part of the growth strategy. Primary geographic markets include the Americas, China Mainland, and Rest of World (comprising APAC and EMEA regions).

Investment Thesis

Executive SummaryLululemon is navigating a leadership transition following the announced departure of CEO Calvin McDonald and a 1% decline in U.S. comparable sales in FY2024. The market is pricing in structural brand decay, but our analysis suggests a temporary product cycle issue being addressed by a three-pillar turnaround plan and significant activist pressure from Elliott Management and founder Chip Wilson. We conclude that the fortress balance sheet, characterized by zero net debt and $1 billion in cash, combined with 33% international growth, provides a massive margin of safety for a recovery in U.S. innovation by Spring 2026.

Recent Activity

2025-12-12+9.60%

Lululemon reported Q3 2025 revenue growth of 7% to $2.6 billion and announced a $1 billion share repurchase authorization increase.

2025-10-21+5.20%

Lululemon entered into a $600 million unsecured revolving credit facility maturing October 15, 2030.

2025-09-05-18.58%

Lululemon reported Q2 2025 revenue growth of 7% to $2.5 billion but revised full-year guidance downward due to U.S. challenges and tariffs.

Valuation Table

Method	Implied Value	Weight	Weighted Value
DCF	$362.57	60%	$217.54
Comps	$164.23	35%	$57.48
Historicals	$449.42	5%	$22.47
Total Weighted			$297.49