Stock Analysis on Net
Stock Analysis on Net

lululemon athletica inc. (NASDAQ:LULU)

Common-Size Income Statement 

lululemon athletica inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Feb 1, 2026 Feb 2, 2025 Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021
Net revenue 100.00 100.00 100.00 100.00 100.00 100.00
Cost of goods sold -43.40 -40.78 -41.69 -44.61 -42.32 -44.02
Gross profit 56.60% 59.22% 58.31% 55.39% 57.68% 55.98%
Selling, general and administrative expenses -36.63 -35.53 -35.32 -34.00 -35.56 -36.55
Impairment of assets and restructuring costs 0.00 0.00 -0.77 -5.03 0.00 0.00
Amortization of intangible assets -0.06 -0.03 -0.05 -0.11 -0.14 -0.12
Acquisition-related expenses 0.00 0.00 0.00 0.00 -0.66 -0.68
Gain on disposal of assets 0.00 0.00 0.00 0.13 0.00 0.00
Income from operations 19.91% 23.67% 22.17% 16.38% 21.31% 18.63%
Other income (expense), net 0.26 0.66 0.45 0.05 0.01 -0.01
Income before income tax expense 20.17% 24.33% 22.62% 16.43% 21.32% 18.61%
Income tax expense -5.94 -7.19 -6.50 -5.89 -5.73 -5.23
Net income 14.22% 17.14% 16.12% 10.54% 15.59% 13.38%

Based on: 10-K (reporting date: 2026-02-01), 10-K (reporting date: 2025-02-02), 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).

The common-size income statement reveals several noteworthy trends over the six-year period. Generally, the company demonstrates fluctuating profitability, with periods of expansion followed by contraction. Gross margin exhibits volatility, while operating income shows a generally positive, though uneven, trajectory. Selling, general, and administrative expenses remain relatively stable as a percentage of net revenue.

Gross Profit
Gross profit as a percentage of net revenue initially increased from 55.98% in 2021 to a peak of 57.68% in 2022. However, it subsequently declined to 55.39% in 2023 before recovering to 58.31% in 2024 and 59.22% in 2025. A decrease to 56.60% is observed in the most recent year, 2026. This suggests potential fluctuations in production costs or pricing strategies.
Operating Expenses
Selling, general, and administrative expenses remained consistently high, ranging between 34.00% and 36.55% of net revenue throughout the period. A slight upward trend is visible towards the end of the period, increasing from 35.32% in 2024 to 36.63% in 2026. This indicates a consistent level of investment in these areas, with a potential for increased spending in later years.
Operating Income
Income from operations demonstrated significant variation. It rose from 18.63% in 2021 to 21.31% in 2022, then decreased to 16.38% in 2023. A substantial increase to 22.17% in 2024 and 23.67% in 2025 was followed by a decline to 19.91% in 2026. This volatility suggests sensitivity to changes in gross margin and operating expenses.
Net Income
Net income followed a similar pattern to operating income, fluctuating between 10.54% and 17.14% of net revenue. The highest value of 17.14% was achieved in 2025, followed by a decrease to 14.22% in 2026. This indicates that the company’s bottom-line profitability is subject to considerable variation.
Other Items
The impact of other income (expense), net, was relatively small but increased over time, moving from -0.01% in 2021 to 0.66% in 2025 before decreasing to 0.26% in 2026. Impairment of assets and restructuring costs were only present in 2023 and 2024, representing 5.03% and 0.77% of net revenue respectively. These one-time items impacted profitability in those years. Acquisition-related expenses were present in 2021 and 2022, and a gain on disposal of assets was recorded in 2023.
Tax Rate
The income tax expense as a percentage of net revenue generally increased over the period, from 5.23% in 2021 to 7.19% in 2025, before decreasing slightly to 5.94% in 2026. This suggests a potentially increasing effective tax rate, or changes in the geographic distribution of profits.

Overall, the company’s financial performance demonstrates a pattern of growth and contraction. While gross margins and operating income show potential for improvement, the volatility observed requires further investigation to understand the underlying drivers and potential risks.

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