Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

lululemon athletica inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Feb 1, 2026	Feb 2, 2025	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021
Net income	1,579,183)	1,814,616)	1,550,190)	854,800)	975,322)	588,913)
Depreciation and amortization	496,228)	446,524)	379,384)	291,791)	224,206)	185,478)
lululemon Studio obsolescence provision	—)	—)	23,709)	62,928)	—)	—)
Impairment of assets and restructuring costs	—)	—)	74,501)	407,913)	—)	—)
Gain on disposal of assets	—)	—)	—)	(10,180)	—)	—)
Stock-based compensation expense	62,203)	90,011)	93,560)	78,075)	69,137)	50,797)
Derecognition of unredeemed gift card liability	(37,766)	(36,231)	(28,547)	(23,337)	(18,699)	(13,696)
Settlement of derivatives not designated in a hedging relationship	(34,552)	(47,763)	32,527)	(38,649)	15,191)	4,485)
Deferred income taxes	(53,379)	57,451)	(28,383)	3,042)	(5,180)	34,908)
Accounts receivable	(65,755)	1,626)	6,580)	(58,987)	—)	—)
Inventories	(188,710)	(156,085)	66,584)	(573,438)	(323,609)	(96,548)
Prepaid and receivable income taxes	(170,216)	(2,031)	1,908)	(66,714)	20,108)	(53,966)
Prepaid expenses and other current assets	47,779)	(71,789)	40,587)	(54,833)	(82,404)	(70,999)
Other non-current assets	(70,351)	(73,205)	(53,280)	(36,518)	(17,556)	(49,056)
Accounts payable	45,856)	(57,044)	177,367)	(107,280)	117,655)	82,663)
Accrued liabilities and other	98,421)	193,139)	(71,734)	65,364)	103,878)	99,161)
Accrued compensation and related expenses	(24,737)	(112,110)	70,327)	47,254)	75,273)	(6,692)
Current and non-current income taxes payable	(150,496)	157,205)	(173,196)	35,986)	120,778)	(24,125)
Unredeemed gift card liability	41,253)	42,410)	84,315)	68,266)	71,441)	47,962)
Right-of-use lease assets and current and non-current lease liabilities	6,884)	23,501)	37,535)	23,905)	13,494)	13,267)
Other current and non-current liabilities	20,632)	2,488)	12,230)	(2,925)	30,073)	10,784)
Changes in operating assets and liabilities	(409,440)	(51,895)	199,223)	(659,920)	129,131)	(47,549)
Adjustments to reconcile net income to net cash provided by operating activities	23,294)	458,097)	745,974)	111,663)	413,786)	214,423)
Net cash provided by operating activities	1,602,477)	2,272,713)	2,296,164)	966,463)	1,389,108)	803,336)
Purchase of property and equipment	(680,802)	(689,232)	(651,865)	(638,657)	(394,502)	(229,226)
Settlement of net investment hedges	27,205)	50,213)	(1,609)	47,804)	(23,389)	(14,607)
Acquisition, net of cash acquired	—)	(154,146)	—)	—)	—)	(452,581)
Other investing activities	(8,521)	(5,009)	(658)	20,916)	(10,000)	882)
Net cash used in investing activities	(662,118)	(798,174)	(654,132)	(569,937)	(427,891)	(695,532)
Proceeds from settlement of stock-based compensation	8,377)	19,813)	42,430)	11,704)	18,194)	15,263)
Taxes paid related to net share settlement of stock-based compensation	(27,372)	(35,410)	(32,574)	(35,158)	(49,809)	(32,388)
Repurchase of common stock	(1,178,349)	(1,636,879)	(558,652)	(444,001)	(812,602)	(63,663)
Other financing activities	(11,312)	(32)	(32)	(32)	(770)	—)
Net cash used in financing activities	(1,208,656)	(1,652,508)	(548,828)	(467,487)	(844,987)	(80,788)
Effect of foreign currency exchange rate changes on cash and cash equivalents	91,163)	(81,666)	(4,100)	(34,043)	(6,876)	29,996)
Increase (decrease) in cash and cash equivalents	(177,134)	(259,635)	1,089,104)	(105,004)	109,354)	57,012)
Cash and cash equivalents, beginning of period	1,984,336)	2,243,971)	1,154,867)	1,259,871)	1,150,517)	1,093,505)
Cash and cash equivalents, end of period	1,807,202)	1,984,336)	2,243,971)	1,154,867)	1,259,871)	1,150,517)

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 company demonstrates a generally positive trend in net cash provided by operating activities over the observed period, with significant increases from 2021 to 2024, followed by a decrease in 2025 and a further decrease in 2026. Net income exhibits volatility, peaking in 2024 before declining in 2025 and 2026. Significant fluctuations are present in several non-cash adjustments to net income, impacting overall operating cash flow.

Operating Activities: Net cash provided by operating activities increased substantially from US$803.3 million in 2021 to US$2,296.2 million in 2024. However, this was followed by a decrease to US$2,272.7 million in 2025 and a further decline to US$1,602.5 million in 2026. Adjustments to reconcile net income to net cash provided by operating activities show a similar pattern, increasing significantly through 2024 and then decreasing in subsequent years. A notable component of these adjustments is depreciation and amortization, which consistently increased throughout the period, contributing positively to operating cash flow. Derecognition of unredeemed gift card liability consistently represents a cash outflow, increasing in magnitude each year. Changes in operating assets and liabilities were highly variable, with a significant outflow in 2023, followed by an inflow in 2024 and subsequent outflows in 2025 and 2026.
Investing Activities: The company consistently used cash in investing activities throughout the period. Purchase of property and equipment represents the largest cash outflow, increasing from US$229.2 million in 2021 to US$689.2 million in 2025, before decreasing slightly to US$680.8 million in 2026. An acquisition occurred in 2021, representing a substantial cash outflow. Settlement of net investment hedges fluctuated, with a significant inflow in 2023. Overall, net cash used in investing activities remained substantial, ranging from approximately US$427.9 million to US$798.2 million annually.
Financing Activities: The company consistently used cash in financing activities. Repurchase of common stock represents the largest cash outflow, increasing significantly from US$63.7 million in 2021 to US$1,636.9 million in 2025, and remaining high at US$1,178.3 million in 2026. Proceeds from settlement of stock-based compensation provided a consistent, though smaller, inflow of cash. Net cash used in financing activities increased substantially over the period, reaching US$1,652.5 million in 2025 and US$1,208.7 million in 2026.
Cash Position: Cash and cash equivalents increased from US$1,093.5 million in 2021 to a peak of US$2,243.9 million in 2024. However, the cash position decreased in both 2025 and 2026, falling to US$1,984.3 million and US$1,807.2 million respectively. The increase in 2024 was driven by strong operating cash flow, while the subsequent decreases were attributable to significant cash outflows from financing activities, particularly share repurchases.

The company experienced significant fluctuations in several balance sheet items impacting cash flow, including accounts receivable, inventories, prepaid expenses, accounts payable, and accrued liabilities. These fluctuations suggest active management of working capital, but also contribute to the variability in operating cash flow. The impairment of assets and restructuring costs in 2023 represent a significant non-cash expense, impacting the reconciliation of net income to operating cash flow.

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lululemon athletica inc. (NASDAQ:LULU)

Cash Flow Statement