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 2, 2025 Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020
Net revenue 100.00 100.00 100.00 100.00 100.00 100.00
Cost of goods sold -40.78 -41.69 -44.61 -42.32 -44.02 -44.13
Gross profit 59.22% 58.31% 55.39% 57.68% 55.98% 55.87%
Selling, general and administrative expenses -35.53 -35.32 -34.00 -35.56 -36.55 -33.53
Impairment of goodwill and other assets, restructuring costs 0.00 -0.77 -5.03 0.00 0.00 0.00
Amortization of intangible assets -0.03 -0.05 -0.11 -0.14 -0.12 0.00
Acquisition-related expenses 0.00 0.00 0.00 -0.66 -0.68 0.00
Gain on disposal of assets 0.00 0.00 0.13 0.00 0.00 0.00
Income from operations 23.67% 22.17% 16.38% 21.31% 18.63% 22.34%
Other income (expense), net 0.66 0.45 0.05 0.01 -0.01 0.21
Income before income tax expense 24.33% 22.62% 16.43% 21.32% 18.61% 22.55%
Income tax expense -7.19 -6.50 -5.89 -5.73 -5.23 -6.33
Net income 17.14% 16.12% 10.54% 15.59% 13.38% 16.22%

Based on: 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), 10-K (reporting date: 2020-02-02).

Gross Profit Margin
The gross profit margin demonstrated a fluctuating but generally upward trend over the reported periods. Starting at 55.87% of net revenue in early 2020, it increased modestly to 57.68% by early 2022, dipped slightly to 55.39% in early 2023, then rose again to reach 59.22% by early 2025. This indicates an overall improvement in cost efficiency related to goods sold, as the percentage of cost of goods sold decreased notably from -44.13% in 2020 to -40.78% in 2025.
Selling, General, and Administrative Expenses (SG&A)
SG&A expenses as a percentage of net revenue showed some volatility but remained relatively high. From -33.53% in 2020, these expenses peaked at -36.55% in 2021, then fluctuated slightly before stabilizing around -35.5% in the latest periods. This stable trend suggests consistent management of operating expenses relative to revenue, despite minor fluctuations.
Special and Non-Recurring Expenses
In early 2023, there was a notable impairment and restructuring charge totaling -5.03% of net revenue, significantly impacting operating income in that period. This was followed by a smaller charge of -0.77% in the next period, indicating some related ongoing costs. Acquisition-related expenses appeared only in the 2021 and 2022 periods at approximately -0.67% combined, with a gain on disposal of assets entering the financials at 0.13% in 2023, partially offsetting charges.
Operating Income
Operating income as a percentage of net revenue showed a general decline from 22.34% in 2020 to a low of 16.38% in 2023, influenced by impairment and restructuring charges, before recovering to 23.67% in 2025. This rebound reflects improved operational performance after extraordinary charges and better control of costs.
Other Income and Expenses
Other income or expense items were relatively minor, fluctuating near zero with occasional small positive contributions, increasing to 0.66% by 2025. These small gains suggest some ancillary income streams supporting overall profitability.
Income Before Tax and Net Income
Income before income tax followed a pattern similar to operating income, dropping from 22.55% in 2020 to 16.43% in 2023 and then rising to 24.33% in 2025. Income tax expense as a percentage of net revenue increased gradually from -6.33% to -7.19%, reflecting higher taxable income and possibly changes in tax rates or provisions. Net income showed a corresponding trend with a dip in 2023 to 10.54%, recovering to 17.14% by 2025, indicating strong profitability resilience and effective margin recovery over the analyzed period.