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 2, 2025	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020
Net income	1,814,616)	1,550,190)	854,800)	975,322)	588,913)	645,596)
Depreciation and amortization	446,524)	379,384)	291,791)	224,206)	185,478)	161,933)
lululemon Studio obsolescence provision	—)	23,709)	62,928)	—)	—)	—)
Impairment of goodwill and other assets, restructuring costs	—)	74,501)	407,913)	—)	—)	—)
Gain on disposal of assets	—)	—)	(10,180)	—)	—)	—)
Stock-based compensation expense	90,011)	93,560)	78,075)	69,137)	50,797)	45,593)
Derecognition of unredeemed gift card liability	(36,231)	(28,547)	(23,337)	(18,699)	(13,696)	(11,939)
Settlement of derivatives not designated in a hedging relationship	(47,763)	32,527)	(38,649)	15,191)	4,485)	(1,925)
Deferred income taxes	57,451)	(28,383)	3,042)	(5,180)	34,908)	24,129)
Accounts receivable	1,626)	6,580)	(58,987)	—)	—)	—)
Inventories	(156,085)	66,584)	(573,438)	(323,609)	(96,548)	(117,591)
Prepaid and receivable income taxes	(2,031)	1,908)	(66,714)	20,108)	(53,966)	(35,775)
Prepaid expenses and other current assets	(71,789)	40,587)	(54,833)	(82,404)	(70,999)	(53,754)
Other non-current assets	(73,205)	(53,280)	(36,518)	(17,556)	(49,056)	(27,852)
Accounts payable	(57,044)	177,367)	(107,280)	117,655)	82,663)	(14,810)
Accrued liabilities and other	193,139)	(71,734)	65,364)	103,878)	99,161)	4,678)
Accrued compensation and related expenses	(112,110)	70,327)	47,254)	75,273)	(6,692)	25,326)
Current and non-current income taxes payable	157,205)	(173,196)	35,986)	120,778)	(24,125)	(34,137)
Unredeemed gift card liability	42,410)	84,315)	68,266)	71,441)	47,962)	33,289)
Right-of-use lease assets and current and non-current lease liabilities	23,501)	37,535)	23,905)	13,494)	13,267)	17,422)
Other current and non-current liabilities	2,488)	12,230)	(2,925)	30,073)	10,784)	9,133)
Changes in operating assets and liabilities	(51,895)	199,223)	(659,920)	129,131)	(47,549)	(194,071)
Adjustments to reconcile net income to net cash provided by operating activities	458,097)	745,974)	111,663)	413,786)	214,423)	23,720)
Net cash provided by operating activities	2,272,713)	2,296,164)	966,463)	1,389,108)	803,336)	669,316)
Purchase of property and equipment	(689,232)	(651,865)	(638,657)	(394,502)	(229,226)	(283,048)
Settlement of net investment hedges	50,213)	(1,609)	47,804)	(23,389)	(14,607)	347)
Acquisition, net of cash acquired	(154,146)	—)	—)	—)	(452,581)	—)
Other investing activities	(5,009)	(658)	20,916)	(10,000)	882)	4,293)
Net cash used in investing activities	(798,174)	(654,132)	(569,937)	(427,891)	(695,532)	(278,408)
Proceeds from settlement of stock-based compensation	19,813)	42,430)	11,704)	18,194)	15,263)	18,170)
Taxes paid related to net share settlement of stock-based compensation	(35,410)	(32,574)	(35,158)	(49,809)	(32,388)	(21,944)
Repurchase of common stock	(1,636,879)	(558,652)	(444,001)	(812,602)	(63,663)	(173,399)
Other financing activities	(32)	(32)	(32)	(770)	—)	—)
Net cash used in financing activities	(1,652,508)	(548,828)	(467,487)	(844,987)	(80,788)	(177,173)
Effect of foreign currency exchange rate changes on cash and cash equivalents	(81,666)	(4,100)	(34,043)	(6,876)	29,996)	(1,550)
Increase (decrease) in cash and cash equivalents	(259,635)	1,089,104)	(105,004)	109,354)	57,012)	212,185)
Cash and cash equivalents, beginning of period	2,243,971)	1,154,867)	1,259,871)	1,150,517)	1,093,505)	881,320)
Cash and cash equivalents, end of period	1,984,336)	2,243,971)	1,154,867)	1,259,871)	1,150,517)	1,093,505)

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).

The financial data reveals several key trends and fluctuations across fiscal years, illustrating the company’s operational performance, investment activities, and capital management strategies.

Net Income

Net income demonstrated variability, with a dip from 645,596 thousand USD in 2020 to 588,913 thousand USD in 2021, followed by a significant rise to 975,322 thousand USD in 2022. Although there was a decline in 2023 to 854,800 thousand USD, a substantial increase occurred in 2024 and 2025, reaching 1,550,190 thousand USD and 1,814,616 thousand USD respectively.

Depreciation and Amortization

Depreciation and amortization expenses steadily increased each year, from 161,933 thousand USD in 2020 to 446,524 thousand USD in 2025, reflecting growing capital investment or asset base.

Significant Non-Recurring Items

In 2023, notable non-recurring charges were observed such as impairment of goodwill and restructuring costs at 407,913 thousand USD, and a studio obsolescence provision of 62,928 thousand USD. These were reduced in 2024. A gain on asset disposal was recorded as a negative 10,180 thousand USD in 2023, indicating a loss.

Stock-Based Compensation Expense

This expense showed a general upward trend from 45,593 thousand USD in 2020 to 93,560 thousand USD in 2024, which slightly decreased to 90,011 thousand USD in 2025, suggesting increased employee compensation through equity.

Changes in Operating Assets and Liabilities

Fluctuations in working capital management were significant, with a major outflow in 2023 (-659,920 thousand USD) followed by a strong recovery in 2024 (199,223 thousand USD). Variability here reflects changing operational dynamics and possibly inventory and receivables management challenges.

Net Cash Provided by Operating Activities

Operating cash flow rose sharply from 669,316 thousand USD in 2020 to a peak of 2,296,164 thousand USD in 2024, stabilizing near that level at 2,272,713 thousand USD in 2025, indicating enhanced cash generation capacity over time.

Investing Activities

Capital expenditures increased markedly, with property and equipment purchases rising from 283,048 thousand USD in 2020 to 689,232 thousand USD in 2025, signaling significant investment in fixed assets. The data also highlights a large acquisition outflow in 2021 (-452,581 thousand USD) and again in 2025 (-154,146 thousand USD), reflecting strategic growth through acquisitions.

Financing Activities

Cash outflows related to financing activities grew notably over the period, primarily due to share repurchases escalating from 173,399 thousand USD in 2020 to 1,638,879 thousand USD in 2025. Proceeds from stock-based compensation settlement were consistent but minor in comparison. The sizeable increase in repurchase activity suggests an aggressive capital return strategy.

Cash and Cash Equivalents

The company’s liquidity position displayed overall growth, with ending cash balances increasing from 1,093,505 thousand USD in 2020 to a peak of 2,243,971 thousand USD in 2024 before a slight decline to 1,984,336 thousand USD in 2025. Notably, cash increased substantially in 2024 despite large investing and financing outflows, supported by strong operating cash flows.

Working Capital Components

Inventories showed extreme volatility, with large negative values (indicating decreases in inventory) in the early years followed by a positive spike in 2024 and then turning negative again in 2025, highlighting possible inventory management adjustments or changes in sales trends. Accounts payable and accrued liabilities similarly fluctuated, reflecting dynamic supplier and operational cash management.

Other Observations

Deferred income taxes: Displayed inconsistency including negative values in some years, indicating fluctuating tax positions.
Unredeemed gift card liability: Consistently increased except in 2025 where notable reduction occurred, possibly related to changes in revenue recognition policies or gift card program modifications.
Effect of foreign currency exchange on cash: Generally negative or small in magnitude, but showing some volatility that could impact cash balances.

Overall, the company demonstrated strong growth in profitability and operating cash flow, accompanied by increased capital expenditure and aggressive share repurchase programs. Operational challenges reflected in working capital volatility and high non-recurring expenses in certain years may warrant attention.

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lululemon athletica inc. (NASDAQ:LULU)

Cash Flow Statement