Rankings Food, drinks & restaurants Lululemon
Lululemon
56
15070100
A view of the same findings, not a new score. How it works
A good business with a real question mark: the price, a crack, or both.
Biggest deductions
- Quality of growth−7
- Margin−5
- Moat and brand−5
Strengths
- Buybacks+1
- Balance sheet+1
How the score is built
From 100 to 56, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 2 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 107.83 USD
- Median analyst target
- 99.00 USD
- Upside to median
- −8.2%
- Analysts
- 36
- Target range
- 44.00 – 255.00 USD
- 52-week change
- −37%
- P/E (trailing)
- 8.8
- Forward P/E
- 12.8
- PEG
- n/a
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 3 findings−17 of −30
- −7Quality of growthRevenue fell 4% in Q2 and comparable stores 9%; in the US/Americas revenue fell 8% and comps 12%. Full-year guidance is cut to −5% to −7% (Q3: −10% to −11%), and analysts expect EPS of 9.44 this year and 8.65 next year vs 14.64 in FY24.
- −5MarginExcluding the tariff refund, the gross margin was about 54.9% vs 58.5% a year earlier and the operating margin about 13.2% vs 20.7%; TTM operating margin 16.6% vs 23.7% in FY24, and ROIC has halved from 48% to 24%.
- −5Moat and brandManagement itself points to weakened brand sentiment and traffic in North America and China, while Alo Yoga and Vuori take share in premium sportswear; the brand is no longer a sure source of pricing power.
Price
Today's multiples against the company's own history and its peers. · 1 finding−2 of −35
- −2Multiples vs own historyForward P/E 11.7 and EV/EBITDA 4.8 are far below own history (14-38 and 7.8-25 in FY21-FY25), but estimates are still falling: P/E on next year's EPS (8.65) is 11.2, so the multiple rests on a falling base.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 4 findings−11 of −35
- −4Management and executionNew CEO Heidi O'Neill (ex-Nike) took office in September after a period of interim co-CEOs; guidance has been cut twice in 2026, and the new strategy has not yet been presented.
- −2Governance and activistsProxy fight with founder Chip Wilson (about 8.7%) ended in May with a settlement and two of his candidates on the board plus a third apparel expert before October; the board is under pressure from both the founder and activists.
- −3TariffsQ2 was flattered by USD 134.5m in refunded IEEPA tariffs; guidance includes no further refunds, and changes in US tariff and customs policy are cited as a risk for a company that produces in Asia.
- −2China and international growthChina was the growth engine, but comps fell 8% in constant currency in Q2 and revenue 2%; internationally in total comps fell 6% in constant currency.
Plus
Only documented strengths. · 2 findings+2 of +15
- +1BuybacksBuybacks of USD 1.17bn over the last 12 months vs FCF of 1.35bn; the share count has fallen 4.3% in a year (but in FY25 buybacks were 1.21bn vs FCF of 0.92bn).
- +1Balance sheetNo financial debt: 1.4bn USD in cash and 594m of undrawn credit facility; the debt in the ratios is leases.
Caveats
What the score does not capture, or where the data is weak.
Fiscal year ends end of January; the latest report is Q2 FY2026 (to 2 Aug 2026, reported 3 Sep), with Q3 due in December. Q2 EPS of USD 2.92 includes a one-off tariff refund of USD 0.86 (USD 134.5m), and full-year guidance of USD 9.48-9.73 includes it; underlying about 8.6-8.9. The debt in stockanalysis (2.1bn) is lease liabilities - no financial debt. Industry: apparel/sportswear does not fit the list; placed under 'Consumer: food, beverage & restaurants' as the closest consumer category. Insider trading and Elliott's position have not been examined. 13F purchases earn no points.
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