lululemon athletica inc. (NASDAQ:LULU)

The composition of assets has shifted notably over the analyzed period, spanning from January 2021 to February 2026. Current assets initially represented a majority of the asset base, peaking at 57.26% in January 2024, before declining slightly to 50.41% by February 2026. Non-current assets have correspondingly increased over the period, rising from 47.09% to 49.59%. Within current assets, cash and cash equivalents demonstrated considerable volatility, beginning at 27.49% in January 2021, decreasing to a low of 20.60% in January 2023, then increasing to 31.64% in January 2024, and finally settling at 21.37% in February 2026.

Liquidity and Current Assets

The proportion of assets held as inventories has increased significantly from 15.46% in January 2021 to 20.11% in February 2026. Accounts receivable, net, also exhibited an upward trend, increasing from 1.49% to 2.25% over the same period. This suggests a potential increase in sales on credit or a lengthening of the collection period. Prepaid expenses and other current assets have shown moderate fluctuations, with a slight decrease observed in the most recent period.

Long-Term Investments and Fixed Assets

Property and equipment, net, has remained relatively stable, fluctuating between 17.82% and 24.05% of total assets. Right-of-use operating lease assets have shown a consistent increase, rising from 16.26% in January 2022 to 19.28% in February 2026, indicating a growing reliance on leased assets. Goodwill experienced a substantial decrease, falling from 9.24% in January 2021 to 0.43% in January 2023, before a modest recovery to 2.19% in February 2026. This decline suggests potential impairment charges or strategic divestitures.

Other Asset Categories

Cloud computing arrangement implementation costs have increased steadily from 1.78% to 2.27% of total assets, reflecting ongoing investment in digital infrastructure. Forward currency contract assets experienced a significant decrease, nearly disappearing in January 2024 before increasing again to 0.37% in February 2026. Security deposits and other non-current assets have shown a gradual increase, suggesting a growing investment in these areas. Deferred income tax assets have also seen a slight increase over the period.

Overall, the asset allocation demonstrates a shift towards non-current assets, particularly right-of-use operating lease assets and, to a lesser extent, property and equipment. The fluctuations in cash and cash equivalents, coupled with the increasing levels of inventories and accounts receivable, warrant further investigation to assess the company’s working capital management and liquidity position. The significant decline and subsequent partial recovery of goodwill also merit attention.