Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

lululemon athletica inc., balance sheet: goodwill and intangible assets

US$ in thousands

	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
Goodwill	24,083)	24,144)	386,880)	386,877)	24,182)	24,239)
MIRROR brand	4,089)	6,423)	26,500)	26,500)	—)	—)
Customer relationships	7,492)	7,492)	28,000)	28,000)	—)	—)
Technology	12,632)	25,500)	25,500)	25,500)	—)	—)
Content	3,250)	5,000)	5,000)	5,000)	—)	—)
Other	270)	270)	270)	270)	241)	—)
Intangible assets, gross carrying amount	27,733)	44,685)	85,270)	85,270)	241)	—)
Accumulated amortization	(27,733)	(22,724)	(13,971)	(5,190)	—)	—)
Intangible assets, net carrying amount	—)	21,961)	71,299)	80,080)	241)	—)
Goodwill and intangible assets, net	24,083)	46,105)	458,179)	466,957)	24,423)	24,239)

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	lululemon athletica inc. goodwill decreased from 2022 to 2023 and from 2023 to 2024.
Intangible assets, net carrying amount	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	lululemon athletica inc. intangible assets, net carrying amount decreased from 2022 to 2023 and from 2023 to 2024.
Goodwill and intangible assets, net	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	lululemon athletica inc. goodwill and intangible assets, net decreased from 2022 to 2023 and from 2023 to 2024.

lululemon athletica inc., adjustments to financial statements

US$ in thousands

	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
Adjustment to Total Assets
Total assets (as reported)	7,091,941)	5,607,038)	4,942,478)	4,185,215)	3,281,354)	2,084,711)
Less: Goodwill	24,083)	24,144)	386,880)	386,877)	24,182)	24,239)
Total assets (adjusted)	7,067,858)	5,582,894)	4,555,598)	3,798,338)	3,257,172)	2,060,472)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	4,232,081)	3,148,799)	2,740,046)	2,558,566)	1,952,218)	1,445,975)
Less: Goodwill	24,083)	24,144)	386,880)	386,877)	24,182)	24,239)
Stockholders’ equity (adjusted)	4,207,998)	3,124,655)	2,353,166)	2,171,689)	1,928,036)	1,421,736)
Adjustment to Net Income
Net income (as reported)	1,550,190)	854,800)	975,322)	588,913)	645,596)	483,801)
Add: Impairment of goodwill	—)	362,492)	—)	—)	—)	—)
Net income (adjusted)	1,550,190)	1,217,292)	975,322)	588,913)	645,596)	483,801)

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

lululemon athletica inc., Financial Data: Reported vs. Adjusted

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lululemon athletica inc., adjusted financial ratios

	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
Net Profit Margin
Reported net profit margin	16.12%	10.54%	15.59%	13.38%	16.22%	14.71%
Adjusted net profit margin	16.12%	15.01%	15.59%	13.38%	16.22%	14.71%
Total Asset Turnover
Reported total asset turnover	1.36	1.45	1.27	1.05	1.21	1.58
Adjusted total asset turnover	1.36	1.45	1.37	1.16	1.22	1.60
Financial Leverage
Reported financial leverage	1.68	1.78	1.80	1.64	1.68	1.44
Adjusted financial leverage	1.68	1.79	1.94	1.75	1.69	1.45
Return on Equity (ROE)
Reported ROE	36.63%	27.15%	35.60%	23.02%	33.07%	33.46%
Adjusted ROE	36.84%	38.96%	41.45%	27.12%	33.48%	34.03%
Return on Assets (ROA)
Reported ROA	21.86%	15.25%	19.73%	14.07%	19.67%	23.21%
Adjusted ROA	21.93%	21.80%	21.41%	15.50%	19.82%	23.48%

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	lululemon athletica inc. adjusted net profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	lululemon athletica inc. adjusted total asset turnover ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	lululemon athletica inc. adjusted financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	lululemon athletica inc. adjusted ROE deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	lululemon athletica inc. adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.

lululemon athletica inc., Financial Ratios: Reported vs. Adjusted

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	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income	1,550,190)	854,800)	975,322)	588,913)	645,596)	483,801)
Net revenue	9,619,278)	8,110,518)	6,256,617)	4,401,879)	3,979,296)	3,288,319)
Profitability Ratio
Net profit margin¹	16.12%	10.54%	15.59%	13.38%	16.22%	14.71%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net income	1,550,190)	1,217,292)	975,322)	588,913)	645,596)	483,801)
Net revenue	9,619,278)	8,110,518)	6,256,617)	4,401,879)	3,979,296)	3,288,319)
Profitability Ratio
Adjusted net profit margin²	16.12%	15.01%	15.59%	13.38%	16.22%	14.71%

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

2024 Calculations

¹ Net profit margin = 100 × Net income ÷ Net revenue
= 100 × 1,550,190 ÷ 9,619,278 = 16.12%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Net revenue
= 100 × 1,550,190 ÷ 9,619,278 = 16.12%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	lululemon athletica inc. adjusted net profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net revenue	9,619,278)	8,110,518)	6,256,617)	4,401,879)	3,979,296)	3,288,319)
Total assets	7,091,941)	5,607,038)	4,942,478)	4,185,215)	3,281,354)	2,084,711)
Activity Ratio
Total asset turnover¹	1.36	1.45	1.27	1.05	1.21	1.58
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net revenue	9,619,278)	8,110,518)	6,256,617)	4,401,879)	3,979,296)	3,288,319)
Adjusted total assets	7,067,858)	5,582,894)	4,555,598)	3,798,338)	3,257,172)	2,060,472)
Activity Ratio
Adjusted total asset turnover²	1.36	1.45	1.37	1.16	1.22	1.60

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

2024 Calculations

¹ Total asset turnover = Net revenue ÷ Total assets
= 9,619,278 ÷ 7,091,941 = 1.36

² Adjusted total asset turnover = Net revenue ÷ Adjusted total assets
= 9,619,278 ÷ 7,067,858 = 1.36

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	lululemon athletica inc. adjusted total asset turnover ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
As Reported
Selected Financial Data (US$ in thousands)
Total assets	7,091,941)	5,607,038)	4,942,478)	4,185,215)	3,281,354)	2,084,711)
Stockholders’ equity	4,232,081)	3,148,799)	2,740,046)	2,558,566)	1,952,218)	1,445,975)
Solvency Ratio
Financial leverage¹	1.68	1.78	1.80	1.64	1.68	1.44
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets	7,067,858)	5,582,894)	4,555,598)	3,798,338)	3,257,172)	2,060,472)
Adjusted stockholders’ equity	4,207,998)	3,124,655)	2,353,166)	2,171,689)	1,928,036)	1,421,736)
Solvency Ratio
Adjusted financial leverage²	1.68	1.79	1.94	1.75	1.69	1.45

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

2024 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 7,091,941 ÷ 4,232,081 = 1.68

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 7,067,858 ÷ 4,207,998 = 1.68

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	lululemon athletica inc. adjusted financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024.

	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income	1,550,190)	854,800)	975,322)	588,913)	645,596)	483,801)
Stockholders’ equity	4,232,081)	3,148,799)	2,740,046)	2,558,566)	1,952,218)	1,445,975)
Profitability Ratio
ROE¹	36.63%	27.15%	35.60%	23.02%	33.07%	33.46%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net income	1,550,190)	1,217,292)	975,322)	588,913)	645,596)	483,801)
Adjusted stockholders’ equity	4,207,998)	3,124,655)	2,353,166)	2,171,689)	1,928,036)	1,421,736)
Profitability Ratio
Adjusted ROE²	36.84%	38.96%	41.45%	27.12%	33.48%	34.03%

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

2024 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 1,550,190 ÷ 4,232,081 = 36.63%

² Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 1,550,190 ÷ 4,207,998 = 36.84%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	lululemon athletica inc. adjusted ROE deteriorated from 2022 to 2023 and from 2023 to 2024.

	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income	1,550,190)	854,800)	975,322)	588,913)	645,596)	483,801)
Total assets	7,091,941)	5,607,038)	4,942,478)	4,185,215)	3,281,354)	2,084,711)
Profitability Ratio
ROA¹	21.86%	15.25%	19.73%	14.07%	19.67%	23.21%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net income	1,550,190)	1,217,292)	975,322)	588,913)	645,596)	483,801)
Adjusted total assets	7,067,858)	5,582,894)	4,555,598)	3,798,338)	3,257,172)	2,060,472)
Profitability Ratio
Adjusted ROA²	21.93%	21.80%	21.41%	15.50%	19.82%	23.48%

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

2024 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 1,550,190 ÷ 7,091,941 = 21.86%

² Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 1,550,190 ÷ 7,067,858 = 21.93%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	lululemon athletica inc. adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.

lululemon athletica inc. (NASDAQ:LULU)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

lululemon athletica inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

lululemon athletica inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)