Stock Analysis on Net

lululemon athletica inc. (NASDAQ:LULU)

$24.99

Price to Operating Profit (P/OP)
since 2008

Microsoft Excel

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Calculation

lululemon athletica inc., P/OP, long-term trends, calculation

Microsoft Excel

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), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03), 10-K (reporting date: 2018-01-28), 10-K (reporting date: 2017-01-29), 10-K (reporting date: 2016-01-31), 10-K (reporting date: 2015-02-01), 10-K (reporting date: 2014-02-02), 10-K (reporting date: 2013-02-03), 10-K (reporting date: 2012-01-29), 10-K (reporting date: 2011-01-30), 10-K (reporting date: 2010-01-31), 10-K (reporting date: 2009-02-01), 10-K (reporting date: 2008-02-03).

1 US$

2 Data adjusted for splits and stock dividends.

3 Closing price as at the filing date of lululemon athletica inc. Annual Report.


The Price to Operating Profit (P/OP) ratio, calculated from the provided financial information, exhibits considerable fluctuation over the observed period from 2008 to 2026. Initially, the ratio demonstrates a high degree of volatility, followed by a period of relative stabilization, and then a renewed period of change.

Early Volatility (2008-2010)
The P/OP ratio began at 44.74 in 2008, decreased substantially to 10.39 in 2009, and then increased to 32.10 by 2010. This initial period is characterized by significant swings, potentially reflecting market uncertainty and company-specific adjustments during the financial crisis and subsequent recovery.
Stabilization and Moderate Fluctuations (2011-2017)
From 2011 through 2017, the P/OP ratio remained within a narrower range, fluctuating between approximately 21.58 and 38.00. This suggests a period of more predictable market valuation relative to operating profitability. A slight upward trend is observable within this timeframe, indicating increasing investor confidence or expectations.
Increased Volatility and Peak (2018-2021)
Beginning in 2018, the P/OP ratio experienced renewed volatility. It increased from 27.23 to a peak of 50.41 in 2021. This substantial increase coincided with a period of strong growth in operating profit per share, suggesting investors were willing to pay a premium for each dollar of operating profit.
Recent Decline (2022-2026)
Following the peak in 2021, the P/OP ratio has demonstrated a clear downward trend, decreasing to 33.00 in 2022, 30.66 in 2023, 28.29 in 2024, 16.44 in 2025, and reaching 8.33 in 2026. This decline may indicate a correction in market valuation, potentially driven by factors such as changing market conditions, increased competition, or shifts in investor sentiment. The most recent value represents a significant contraction in the premium investors are willing to pay for operating profit.

Overall, the P/OP ratio has moved from a high initial valuation to a period of relative stability, followed by a significant increase and a subsequent, substantial decline. The recent downward trend warrants further investigation to determine the underlying causes and potential implications for future performance.