Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
lululemon athletica inc., profitability ratios
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 profitability metrics demonstrate a generally positive trajectory over the observed period, though with some fluctuations. Initial increases in margins and returns are followed by periods of contraction before resuming growth, indicating a dynamic performance landscape. The most recent projections suggest a potential softening of profitability in the later years of the forecast.
- Gross Profit Margin
- The gross profit margin exhibited an initial increase from 55.98% in 2021 to 57.68% in 2022. A subsequent decline to 55.39% in 2023 was followed by a recovery to 58.31% in 2024 and further improvement to 59.22% in 2025. A projected decrease to 56.60% is indicated for 2026. This suggests potential volatility in production costs or pricing strategies.
- Operating Profit Margin
- The operating profit margin showed consistent growth from 18.63% in 2021 to 21.31% in 2022, and then to 22.17% in 2024, with a temporary dip to 16.38% in 2023. The margin peaks at 23.67% in 2025 before decreasing to 19.91% in 2026. This pattern indicates effective operational management, though the projected decline warrants further investigation.
- Net Profit Margin
- The net profit margin followed a similar trend to the operating margin, increasing from 13.38% in 2021 to 15.59% in 2022, experiencing a decrease to 10.54% in 2023, and then rising to 16.12% in 2024 and 17.14% in 2025. A projected decline to 14.22% is observed for 2026. This suggests that changes in net income are closely correlated with operational performance.
- Return on Equity (ROE)
- Return on equity demonstrated substantial growth, increasing from 23.02% in 2021 to 35.60% in 2022, followed by a decrease to 27.15% in 2023. ROE then rebounded strongly to 36.63% in 2024 and peaked at 41.97% in 2025 before decreasing to 31.83% in 2026. This indicates increasing efficiency in utilizing shareholder equity to generate profits, though the recent peak and subsequent decline require monitoring.
- Return on Assets (ROA)
- Return on assets mirrored the trend observed in ROE, increasing from 14.07% in 2021 to 19.73% in 2022, decreasing to 15.25% in 2023, and then increasing to 21.86% in 2024 and 23.87% in 2025. A projected decrease to 18.67% is indicated for 2026. This suggests improving efficiency in utilizing assets to generate profits, but the projected decline suggests potential challenges in asset utilization.
Overall, the period from 2021 to 2025 demonstrates a pattern of growth in profitability ratios, followed by projected declines in 2026. This suggests a potential shift in the company’s performance and warrants further investigation into the underlying factors driving these changes.
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Return on Sales
Return on Investment
Gross Profit Margin
lululemon athletica inc., gross profit margin calculation, comparison to benchmarks
| Feb 1, 2026 | Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Gross profit | 6,284,132) | 6,270,811) | 5,609,405) | 4,492,340) | 3,608,565) | 2,463,991) | |
| Net revenue | 11,102,600) | 10,588,126) | 9,619,278) | 8,110,518) | 6,256,617) | 4,401,879) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 56.60% | 59.22% | 58.31% | 55.39% | 57.68% | 55.98% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Nike Inc. | — | 42.73% | 44.56% | 43.52% | 45.98% | 44.82% | |
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).
1 2026 Calculation
Gross profit margin = 100 × Gross profit ÷ Net revenue
= 100 × 6,284,132 ÷ 11,102,600 = 56.60%
2 Click competitor name to see calculations.
The gross profit margin exhibited fluctuations over the analyzed period, generally trending upwards before a slight decline in the most recent year. Gross profit increased consistently year-over-year, while net revenue also demonstrated strong growth, influencing the margin’s behavior.
- Gross Profit Margin Trend
- In January 2021, the gross profit margin stood at 55.98%. This increased to 57.68% in January 2022, indicating improved profitability from core operations. A slight decrease was observed in January 2023, with the margin falling to 55.39%. The margin then recovered, rising to 58.31% in January 2024 and further to 59.22% in February 2025, representing the highest point in the observed period. However, a modest decline to 56.60% occurred in February 2026.
- Relationship between Gross Profit and Net Revenue
- Both gross profit and net revenue increased each year. From January 2021 to February 2025, gross profit more than doubled, rising from US$2,463,991 thousand to US$6,270,811 thousand. Net revenue experienced a similar growth pattern, increasing from US$4,401,879 thousand to US$10,588,126 thousand over the same period. The slight decrease in gross profit margin in February 2026 occurred despite a continued increase in gross profit, suggesting a proportionally larger increase in net revenue.
The observed fluctuations in the gross profit margin suggest a dynamic pricing environment or changes in the cost of goods sold. The overall upward trend from 2021 to 2025 indicates effective cost management or successful pricing strategies, while the recent dip in 2026 warrants further investigation to determine the underlying causes.
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Operating Profit Margin
lululemon athletica inc., operating profit margin calculation, comparison to benchmarks
| Feb 1, 2026 | Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Income from operations | 2,210,615) | 2,505,697) | 2,132,676) | 1,328,408) | 1,333,355) | 819,986) | |
| Net revenue | 11,102,600) | 10,588,126) | 9,619,278) | 8,110,518) | 6,256,617) | 4,401,879) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 19.91% | 23.67% | 22.17% | 16.38% | 21.31% | 18.63% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Nike Inc. | — | 7.99% | 12.29% | 11.55% | 14.29% | 15.58% | |
| Operating Profit Margin, Sector | |||||||
| Consumer Durables & Apparel | — | 10.91% | 13.85% | 12.21% | 15.12% | 15.85% | |
| Operating Profit Margin, Industry | |||||||
| Consumer Discretionary | — | 9.27% | 10.96% | 9.02% | 8.35% | 8.71% | |
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).
1 2026 Calculation
Operating profit margin = 100 × Income from operations ÷ Net revenue
= 100 × 2,210,615 ÷ 11,102,600 = 19.91%
2 Click competitor name to see calculations.
The operating profit margin exhibited a generally positive trend over the observed period, though with some fluctuation. Initial values increased before experiencing a decline and subsequent recovery.
- Overall Trend
- From January 31, 2021, to February 1, 2026, the operating profit margin generally increased, peaking in February 2, 2025, before decreasing slightly in the final observed period. The margin moved from 18.63% to 19.91% over the six-year period.
- Growth Phase (2021-2022)
- A period of growth is evident between January 31, 2021, and January 30, 2022, with the operating profit margin increasing from 18.63% to 21.31%. This suggests improved operational efficiency or pricing power during this time.
- Decline (2022-2023)
- The operating profit margin decreased from 21.31% in January 30, 2022, to 16.38% in January 29, 2023. This decline could be attributed to increased operating expenses, decreased revenue growth, or a combination of both.
- Recovery and Peak (2023-2025)
- A significant recovery occurred between January 29, 2023, and February 2, 2025. The operating profit margin rose to 23.67%, indicating a substantial improvement in profitability. This improvement likely reflects successful cost management strategies or increased sales volume with favorable pricing.
- Recent Moderation (2025-2026)
- The most recent period, from February 2, 2025, to February 1, 2026, shows a slight decrease in the operating profit margin to 19.91%. While still representing a healthy margin, this suggests potential emerging pressures on profitability that warrant further investigation.
Income from operations increased substantially over the period, from US$819,986 thousand to US$2,210,615 thousand. Net revenue also increased significantly, from US$4,401,879 thousand to US$11,102,600 thousand. The operating profit margin’s fluctuations occurred despite consistent growth in both income from operations and net revenue.
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Net Profit Margin
lululemon athletica inc., net profit margin calculation, comparison to benchmarks
| Feb 1, 2026 | Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net income | 1,579,183) | 1,814,616) | 1,550,190) | 854,800) | 975,322) | 588,913) | |
| Net revenue | 11,102,600) | 10,588,126) | 9,619,278) | 8,110,518) | 6,256,617) | 4,401,879) | |
| Profitability Ratio | |||||||
| Net profit margin1 | 14.22% | 17.14% | 16.12% | 10.54% | 15.59% | 13.38% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Nike Inc. | — | 6.95% | 11.10% | 9.90% | 12.94% | 12.86% | |
| Net Profit Margin, Sector | |||||||
| Consumer Durables & Apparel | — | 8.85% | 11.89% | 9.99% | 13.26% | 12.91% | |
| Net Profit Margin, Industry | |||||||
| Consumer Discretionary | — | 7.84% | 8.69% | 7.84% | 5.02% | 9.12% | |
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).
1 2026 Calculation
Net profit margin = 100 × Net income ÷ Net revenue
= 100 × 1,579,183 ÷ 11,102,600 = 14.22%
2 Click competitor name to see calculations.
The net profit margin exhibited a fluctuating pattern over the observed period. Initial values demonstrate growth, followed by a decline, and subsequent recovery, ultimately concluding with a decrease in the most recent year.
- Overall Trend
- From January 31, 2021, to January 28, 2024, the net profit margin generally increased, although not consistently. A peak was reached in 2024 before declining in the following two years. This suggests a period of improving profitability followed by potential challenges in maintaining those gains.
- Growth Phase (2021-2024)
- The net profit margin increased from 13.38% in 2021 to 15.59% in 2022, indicating improved profitability during that period. This growth continued, reaching 16.12% in 2024, representing the highest value within the observed timeframe. This suggests effective cost management or increased pricing power during these years.
- Decline Phase (2024-2026)
- Following the peak in 2024, the net profit margin decreased to 17.14% in 2025 and further to 14.22% in 2026. This decline could be attributed to increased operating expenses, a shift in sales mix towards lower-margin products, or increased competition. The decrease in 2026 is particularly notable, representing a significant reduction from the prior year’s high.
- Relationship to Revenue
- Net revenue consistently increased throughout the period. However, the net profit margin did not consistently follow this upward trend, indicating that revenue growth alone does not guarantee improved profitability. The divergence between revenue and margin trends, particularly in the later years, warrants further investigation.
- Volatility
- The net profit margin demonstrates a degree of volatility, fluctuating between 10.54% and 17.14% over the six-year period. This suggests that the company’s profitability is susceptible to changes in various factors, including cost of goods sold, operating expenses, and pricing strategies.
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Return on Equity (ROE)
lululemon athletica inc., ROE calculation, comparison to benchmarks
| Feb 1, 2026 | Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net income | 1,579,183) | 1,814,616) | 1,550,190) | 854,800) | 975,322) | 588,913) | |
| Stockholders’ equity | 4,961,840) | 4,324,047) | 4,232,081) | 3,148,799) | 2,740,046) | 2,558,566) | |
| Profitability Ratio | |||||||
| ROE1 | 31.83% | 41.97% | 36.63% | 27.15% | 35.60% | 23.02% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Nike Inc. | — | 24.36% | 39.50% | 36.20% | 39.57% | 44.86% | |
| ROE, Sector | |||||||
| Consumer Durables & Apparel | — | 28.70% | 38.85% | 34.54% | 38.96% | 41.21% | |
| ROE, Industry | |||||||
| Consumer Discretionary | — | 20.91% | 27.93% | 29.93% | 20.78% | 33.71% | |
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).
1 2026 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 1,579,183 ÷ 4,961,840 = 31.83%
2 Click competitor name to see calculations.
The Return on Equity (ROE) demonstrates a generally positive trajectory over the observed period, though with some fluctuation. Net income and stockholders’ equity both increased over the six years, contributing to the observed ROE movement.
- Overall Trend
- ROE increased from 23.02% in 2021 to a peak of 41.97% in 2025, before decreasing to 31.83% in 2026. This indicates improving profitability relative to shareholder investment for the majority of the period, followed by a recent decline.
- Initial Increase (2021-2022)
- A substantial increase in ROE is observed between 2021 and 2022, rising from 23.02% to 35.60%. This growth is attributable to a significant increase in net income, which outpaced the growth in stockholders’ equity during this period.
- Mid-Period Fluctuation (2022-2023)
- A decrease in ROE occurred between 2022 and 2023, moving from 35.60% to 27.15%. While net income decreased, stockholders’ equity increased, contributing to the decline in ROE. This suggests a less efficient use of equity during 2023.
- Subsequent Growth (2023-2025)
- ROE experienced a strong recovery and continued growth between 2023 and 2025, reaching 41.97%. This was driven by a substantial increase in net income, coupled with a more moderate increase in stockholders’ equity. The company demonstrated improved profitability and efficient capital utilization during this timeframe.
- Recent Decline (2025-2026)
- A decrease in ROE is noted between 2025 and 2026, falling to 31.83%. This decline coincides with a decrease in net income, while stockholders’ equity continued to grow. This suggests a potential weakening in profitability relative to the equity base.
The fluctuations in ROE suggest a sensitivity to changes in both net income and equity levels. Further investigation into the drivers of net income and equity changes would be beneficial to understand the underlying causes of these ROE movements.
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Return on Assets (ROA)
lululemon athletica inc., ROA calculation, comparison to benchmarks
| Feb 1, 2026 | Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net income | 1,579,183) | 1,814,616) | 1,550,190) | 854,800) | 975,322) | 588,913) | |
| Total assets | 8,456,743) | 7,603,292) | 7,091,941) | 5,607,038) | 4,942,478) | 4,185,215) | |
| Profitability Ratio | |||||||
| ROA1 | 18.67% | 23.87% | 21.86% | 15.25% | 19.73% | 14.07% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Nike Inc. | — | 8.80% | 14.96% | 13.51% | 14.99% | 15.17% | |
| ROA, Sector | |||||||
| Consumer Durables & Apparel | — | 11.39% | 16.04% | 13.73% | 15.51% | 15.06% | |
| ROA, Industry | |||||||
| Consumer Discretionary | — | 6.71% | 8.12% | 7.57% | 4.81% | 7.99% | |
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).
1 2026 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 1,579,183 ÷ 8,456,743 = 18.67%
2 Click competitor name to see calculations.
The Return on Assets (ROA) demonstrates a generally positive trajectory over the observed period, though with some fluctuation. Initial values indicate a strong performance, followed by a period of expansion and then a slight contraction before resuming growth.
- Overall Trend
- From January 31, 2021, to February 1, 2026, the ROA generally increased. The metric began at 14.07% and peaked at 23.87% before decreasing to 18.67% in the most recent period. This suggests improving efficiency in asset utilization for generating profits, although the latest figure indicates a potential shift in this trend.
- Growth Phase (2021-2022)
- A significant increase in ROA is observed between January 31, 2021 (14.07%) and January 30, 2022 (19.73%). This substantial improvement suggests a notable enhancement in profitability relative to the asset base during this period. The increase coincides with a considerable rise in net income.
- Intermediate Adjustment (2022-2023)
- Following the peak in 2022, the ROA experienced a decrease to 15.25% by January 29, 2023. While still a healthy return, this represents a contraction from the previous year. This decrease occurred despite an increase in net income, indicating that asset growth outpaced profit growth.
- Recent Performance (2023-2025)
- The ROA rebounded strongly, reaching 21.86% on January 28, 2024, and further increasing to 23.87% on February 2, 2025. This indicates a renewed improvement in the efficiency of asset utilization. The substantial growth in net income contributed significantly to this increase. However, the most recent period shows a decline.
- Latest Period (2025-2026)
- The ROA decreased to 18.67% by February 1, 2026. This decline, despite continued positive net income, suggests that the rate of asset growth exceeded the rate of profit generation. Further investigation would be needed to determine the underlying causes of this shift.
In summary, the ROA demonstrates a pattern of growth, adjustment, and recent moderation. While the overall trend is positive, the latest period’s decrease warrants further scrutiny to understand the factors influencing asset utilization and profitability.
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