Stock Analysis on Net

lululemon athletica inc. (NASDAQ:LULU)

$24.99

Return on Equity (ROE)
since 2008

Microsoft Excel

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Calculation

lululemon athletica inc., ROE, 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$ in thousands


The return on equity (ROE) exhibited considerable fluctuation over the observed period. Initially, the ROE demonstrated a relatively stable performance, followed by a period of increased volatility and, ultimately, a strong upward trend in recent years.

Initial Period (2008-2011)
From 2008 to 2011, the ROE generally remained within a range of 25% to 31%. It began at 27.53% in 2008, experienced a slight decrease to 25.42% in 2009, and then stabilized around 25% to 31% for the subsequent three years. This suggests a consistent level of profitability relative to shareholder equity during this timeframe.
Mid-Period Volatility (2012-2016)
The period between 2012 and 2016 saw increased variability in ROE. While remaining above 20%, the ROE decreased to 25.49% in 2014 and 21.94% in 2015, before recovering to 25.89% in 2016. This fluctuation may indicate changing market conditions or internal strategic shifts impacting profitability.
Recent Upward Trend (2017-2025)
Beginning in 2017, the ROE experienced a significant upward trend. It decreased to 16.20% in 2017, but then rose sharply to 33.46% in 2019, 33.07% in 2020, and peaked at 41.97% in 2025. This substantial increase suggests improved efficiency in utilizing shareholder equity to generate profits. The ROE in 2025 represents the highest value observed throughout the entire period. A slight decrease to 31.83% is observed in 2026.
Relationship to Net Income and Equity
The ROE movements correlate with changes in both net income and stockholders’ equity. Increases in net income, particularly the substantial growth observed in later years, contributed to higher ROE values. Simultaneously, growth in stockholders’ equity, while generally positive, did not consistently offset the increases in net income, resulting in the observed upward trend in ROE. The decrease in ROE in 2017 is attributable to a decrease in net income combined with an increase in equity.

Overall, the ROE demonstrates a long-term positive trajectory, particularly in the most recent years. The company has shown an increasing ability to generate profits from shareholder investments, although some periods of volatility were present.


Comparison to Competitors


Comparison to Sector (Consumer Durables & Apparel)

lululemon athletica inc., ROE, long-term trends, comparison to sector (consumer durables & apparel)

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).


Comparison to Industry (Consumer Discretionary)

lululemon athletica inc., ROE, long-term trends, comparison to industry (consumer discretionary)

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).