Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (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., income tax expense (benefit), continuing operations

US$ in thousands

12 months ended:	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
Federal	140,726)	34,752)	25,701)	70)	45,765)	73,213)
State	42,476)	33,369)	17,608)	10,439)	11,480)	16,153)
Foreign	469,090)	400,250)	322,105)	185,803)	170,158)	123,129)
Current income tax expense	652,292)	468,371)	365,414)	196,312)	227,403)	212,495)
Federal	(14,741)	8,932)	5,858)	19,754)	(5,683)	(13,068)
State	(3,097)	2,363)	1,045)	5,923)	(150)	(8,566)
Foreign	(8,909)	(1,895)	(13,770)	8,448)	30,227)	40,588)
Deferred income tax expense (recovery)	(26,747)	9,400)	(6,867)	34,125)	24,394)	18,954)
Income tax expense	625,545)	477,771)	358,547)	230,437)	251,797)	231,449)

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
Current income tax expense	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	lululemon athletica inc. current income tax expense increased from 2022 to 2023 and from 2023 to 2024.
Deferred income tax expense (recovery)	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	lululemon athletica inc. deferred income tax expense (recovery) increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.
Income tax expense	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	lululemon athletica inc. income tax expense increased from 2022 to 2023 and from 2023 to 2024.

lululemon athletica inc., effective income tax rate (EITR) reconciliation

	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
Federal income tax at statutory rate	21.00%	21.00%	21.00%	21.00%	21.00%	21.00%
Foreign tax rate differentials	4.10%	6.80%	5.00%	4.60%	4.60%	4.70%
U.S. state taxes	1.00%	-0.40%	0.80%	0.80%	1.00%	0.90%
Non-deductible compensation expense	0.60%	0.70%	0.70%	2.10%	0.60%	0.80%
Excess tax benefits from stock-based compensation	-0.40%	-0.50%	-0.90%	-0.80%	-0.40%	0.00%
Tax on unremitted foreign earnings	2.60%	1.40%	0.00%	0.00%	0.00%	0.00%
Impairment of goodwill and other assets, gain on disposal of assets	0.00%	7.80%	0.00%	0.00%	0.00%	0.00%
Permanent and other	-0.10%	-0.90%	0.30%	0.40%	1.30%	0.60%
U.S. tax reform	0.00%	0.00%	0.00%	0.00%	0.00%	1.10%
Tax on repatriation from foreign subsidiaries	0.00%	0.00%	0.00%	0.00%	0.00%	3.30%
Effective tax rate	28.80%	35.90%	26.90%	28.10%	28.10%	32.40%

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
Effective tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	lululemon athletica inc. effective tax rate increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.

lululemon athletica inc., components of deferred tax assets and liabilities

US$ in thousands

	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
Net operating loss carryforwards	2,385)	2,312)	6,686)	14,149)	2,354)	3,163)
Inventories	43,157)	43,471)	16,326)	14,093)	8,763)	8,684)
Accrued bonuses	19,075)	13,647)	7,830)	1,948)	3,509)	3,265)
Unredeemed gift card liability	15,580)	12,877)	9,804)	6,629)	6,815)	5,015)
Non-current lease liabilities	286,528)	216,495)	173,700)	160,015)	144,412)	—)
Research and experimental expenditures	48,922)	—)	—)	—)	—)	—)
Stock-based compensation	20,057)	16,093)	10,739)	7,266)	4,961)	2,440)
Property and equipment, net	—)	—)	—)	2,715)	5,444)	—)
Deferred lease liabilities	—)	—)	—)	—)	—)	8,206)
Tenant inducements	—)	—)	—)	—)	—)	10,444)
Other	16,802)	9,645)	12,992)	14,406)	7,586)	4,813)
Deferred income tax assets	452,506)	314,540)	238,077)	221,221)	183,844)	46,030)
Valuation allowance	(2,334)	(743)	(2,804)	(6,464)	(5,655)	(507)
Deferred income tax assets, net of valuation allowance	450,172)	313,797)	235,273)	214,757)	178,189)	45,523)
Property and equipment, net	(162,312)	(142,516)	(104,498)	(97,717)	(57,280)	(33,055)
Intangible assets, net	—)	(5,224)	(17,669)	(21,556)	(611)	—)
Right-of-use lease assets	(265,157)	(192,221)	(154,634)	(134,245)	(132,059)	—)
Other	(43,049)	(22,518)	(5,733)	(13,263)	(236)	(168)
Deferred income tax liabilities	(470,518)	(362,479)	(282,534)	(266,781)	(190,186)	(33,223)
Net deferred income tax assets (liabilities)	(20,346)	(48,682)	(47,261)	(52,024)	(11,997)	12,300)

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
Deferred income tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	lululemon athletica inc. deferred income tax assets increased from 2022 to 2023 and from 2023 to 2024.
Deferred income tax assets, net of valuation allowance	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	lululemon athletica inc. deferred income tax assets, net of valuation allowance increased from 2022 to 2023 and from 2023 to 2024.
Net deferred income tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	lululemon athletica inc. net deferred income tax assets (liabilities) decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

lululemon athletica inc., deferred tax assets and liabilities, classification

US$ in thousands

		Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
	Deferred income tax assets	9,176)	6,402)	6,091)	6,731)	31,435)	26,549)
	Deferred income tax liabilities	29,522)	55,084)	53,352)	58,755)	43,432)	14,249)

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
Deferred income tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	lululemon athletica inc. deferred income tax assets increased from 2022 to 2023 and from 2023 to 2024.
Deferred income tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	lululemon athletica inc. deferred income tax liabilities increased from 2022 to 2023 but then decreased significantly 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: Noncurrent deferred tax assets, net	9,176)	6,402)	6,091)	6,731)	31,435)	26,549)
Total assets (adjusted)	7,082,765)	5,600,636)	4,936,387)	4,178,484)	3,249,919)	2,058,162)
Adjustment to Total Liabilities
Total liabilities (as reported)	2,859,860)	2,458,239)	2,202,432)	1,626,649)	1,329,136)	638,736)
Less: Noncurrent deferred tax liabilities, net	29,522)	55,084)	53,352)	58,755)	43,432)	14,249)
Total liabilities (adjusted)	2,830,338)	2,403,155)	2,149,080)	1,567,894)	1,285,704)	624,487)
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: Net deferred tax assets (liabilities)	(20,346)	(48,682)	(47,261)	(52,024)	(11,997)	12,300)
Stockholders’ equity (adjusted)	4,252,427)	3,197,481)	2,787,307)	2,610,590)	1,964,215)	1,433,675)
Adjustment to Net Income
Net income (as reported)	1,550,190)	854,800)	975,322)	588,913)	645,596)	483,801)
Add: Deferred income tax expense (benefit)	(26,747)	9,400)	(6,867)	34,125)	24,394)	18,954)
Net income (adjusted)	1,523,443)	864,200)	968,455)	623,038)	669,990)	502,755)

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	15.84%	10.66%	15.48%	14.15%	16.84%	15.29%
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	1.27	1.05	1.22	1.60
Financial Leverage
Reported financial leverage	1.68	1.78	1.80	1.64	1.68	1.44
Adjusted financial leverage	1.67	1.75	1.77	1.60	1.65	1.44
Return on Equity (ROE)
Reported ROE	36.63%	27.15%	35.60%	23.02%	33.07%	33.46%
Adjusted ROE	35.83%	27.03%	34.75%	23.87%	34.11%	35.07%
Return on Assets (ROA)
Reported ROA	21.86%	15.25%	19.73%	14.07%	19.67%	23.21%
Adjusted ROA	21.51%	15.43%	19.62%	14.91%	20.62%	24.43%

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 total 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 slightly deteriorated 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 but then improved from 2023 to 2024 exceeding 2022 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	lululemon athletica inc. adjusted ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

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 Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	1,523,443)	864,200)	968,455)	623,038)	669,990)	502,755)
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	15.84%	10.66%	15.48%	14.15%	16.84%	15.29%

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 × 1,523,443 ÷ 9,619,278 = 15.84%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total 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 Deferred Taxes
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	7,082,765)	5,600,636)	4,936,387)	4,178,484)	3,249,919)	2,058,162)
Activity Ratio
Adjusted total asset turnover²	1.36	1.45	1.27	1.05	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 ÷ 7,082,765 = 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 slightly deteriorated 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 Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted total assets	7,082,765)	5,600,636)	4,936,387)	4,178,484)	3,249,919)	2,058,162)
Adjusted stockholders’ equity	4,252,427)	3,197,481)	2,787,307)	2,610,590)	1,964,215)	1,433,675)
Solvency Ratio
Adjusted financial leverage²	1.67	1.75	1.77	1.60	1.65	1.44

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
= 7,082,765 ÷ 4,252,427 = 1.67

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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 Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	1,523,443)	864,200)	968,455)	623,038)	669,990)	502,755)
Adjusted stockholders’ equity	4,252,427)	3,197,481)	2,787,307)	2,610,590)	1,964,215)	1,433,675)
Profitability Ratio
Adjusted ROE²	35.83%	27.03%	34.75%	23.87%	34.11%	35.07%

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 × 1,523,443 ÷ 4,252,427 = 35.83%

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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 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 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 Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	1,523,443)	864,200)	968,455)	623,038)	669,990)	502,755)
Adjusted total assets	7,082,765)	5,600,636)	4,936,387)	4,178,484)	3,249,919)	2,058,162)
Profitability Ratio
Adjusted ROA²	21.51%	15.43%	19.62%	14.91%	20.62%	24.43%

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 × 1,523,443 ÷ 7,082,765 = 21.51%

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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 deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

lululemon athletica inc. (NASDAQ:LULU)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

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

Adjusted Financial Ratios: Removal of Deferred Taxes (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)