Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
lululemon athletica inc., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-08-02), 10-Q (reporting date: 2026-05-03), 10-K (reporting date: 2026-02-01), 10-Q (reporting date: 2025-11-02), 10-Q (reporting date: 2025-08-03), 10-Q (reporting date: 2025-05-04), 10-K (reporting date: 2025-02-02), 10-Q (reporting date: 2024-10-27), 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-K (reporting date: 2024-01-28), 10-Q (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-29), 10-Q (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-K (reporting date: 2022-01-30), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02).
The profitability metrics exhibit a cyclical trajectory characterized by a significant contraction in early 2023, a period of robust expansion peaking in early 2025, and a subsequent consistent decline through mid-2026.
- Margin Analysis
- Gross profit margins remained relatively stable between 55% and 59%. A trough of 55.39% occurred in January 2023, followed by a steady ascent to a peak of 59.34% in May 2025. A downward trend is observed thereafter, with the margin retreating to 56.11% by August 2026. Operating and net profit margins displayed higher volatility than the gross margin. Both metrics experienced sharp declines in January 2023, with the operating margin falling to 16.38% and the net margin to 10.54%. These ratios recovered significantly throughout 2024, peaking at 23.67% and 17.14%, respectively, in February 2025, before entering a period of gradual decline.
- Return on Equity (ROE)
- ROE demonstrated substantial fluctuations over the period. Initial growth from 26.71% in May 2021 to 38.55% in July 2022 was followed by a correction to 27.15% in January 2023. The ratio subsequently reached a peak of 43.55% in October 2023. A sustained downward trend began in early 2025, resulting in a decline to 29.60% by August 2026.
- Return on Assets (ROA)
- ROA mirrored the patterns observed in ROE and net profit margins. The ratio peaked at 24.50% in October 2023, following a period of contraction where it hit a low of 15.25% in January 2023. By August 2026, ROA declined to 16.71%, indicating a reduction in the efficiency of asset utilization toward the end of the observed period.
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Return on Sales
Return on Investment
Gross Profit Margin
lululemon athletica inc., gross profit margin calculation (quarterly data)
| Aug 2, 2026 | May 3, 2026 | Feb 1, 2026 | Nov 2, 2025 | Aug 3, 2025 | May 4, 2025 | Feb 2, 2025 | Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Gross profit | 1,461,878) | 1,338,818) | 1,997,888) | 1,425,916) | 1,477,202) | 1,383,126) | 2,181,952) | 1,401,606) | 1,412,185) | 1,275,068) | 1,903,425) | 1,256,664) | 1,298,511) | 1,150,805) | 1,527,619) | 1,038,852) | 1,055,476) | 870,393) | 1,236,172) | 829,393) | 842,686) | 700,314) | |||||||
| Net revenue | 2,415,631) | 2,471,603) | 3,640,801) | 2,565,920) | 2,525,219) | 2,370,660) | 3,611,497) | 2,396,660) | 2,371,078) | 2,208,891) | 3,205,103) | 2,204,218) | 2,209,165) | 2,000,792) | 2,771,838) | 1,856,889) | 1,868,328) | 1,613,463) | 2,129,113) | 1,450,421) | 1,450,618) | 1,226,465) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Gross profit margin1 | 56.11% | 55.70% | 56.60% | 58.41% | 59.10% | 59.34% | 59.22% | 58.85% | 58.54% | 58.34% | 58.31% | 56.97% | 56.75% | 56.16% | 55.39% | 56.25% | 56.53% | 56.88% | 57.68% | 57.80% | 57.62% | 56.87% | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||||||||
| Nike Inc. | — | — | 42.91% | 40.81% | 41.13% | 41.94% | 42.73% | 43.82% | 44.60% | 44.84% | 44.56% | 44.30% | 43.96% | 43.52% | 43.52% | 43.85% | 44.59% | 45.38% | 45.98% | 46.20% | 45.96% | 45.28% | |||||||
Based on: 10-Q (reporting date: 2026-08-02), 10-Q (reporting date: 2026-05-03), 10-K (reporting date: 2026-02-01), 10-Q (reporting date: 2025-11-02), 10-Q (reporting date: 2025-08-03), 10-Q (reporting date: 2025-05-04), 10-K (reporting date: 2025-02-02), 10-Q (reporting date: 2024-10-27), 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-K (reporting date: 2024-01-28), 10-Q (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-29), 10-Q (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-K (reporting date: 2022-01-30), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02).
1 Q2 2027 Calculation
Gross profit margin = 100
× (Gross profitQ2 2027
+ Gross profitQ1 2027
+ Gross profitQ4 2026
+ Gross profitQ3 2026)
÷ (Net revenueQ2 2027
+ Net revenueQ1 2027
+ Net revenueQ4 2026
+ Net revenueQ3 2026)
= 100 × (1,461,878 + 1,338,818 + 1,997,888 + 1,425,916)
÷ (2,415,631 + 2,471,603 + 3,640,801 + 2,565,920)
= 56.11%
2 Click competitor name to see calculations.
The financial performance over the analyzed period reflects a substantial increase in both net revenue and gross profit, accompanied by a fluctuating gross profit margin. While absolute profitability grew consistently, the margin percentage underwent three distinct phases characterized by initial stability, a period of expansion, and a subsequent contraction.
- Revenue and Gross Profit Scaling
- Net revenue demonstrated significant growth, rising from 1,226,465 thousand US dollars in May 2021 to a peak of 3,640,801 thousand US dollars in February 2026. Gross profit mirrored this trajectory, increasing from 700,314 thousand US dollars in May 2021 to a high of 1,997,888 thousand US dollars in February 2026. This consistent growth in absolute terms highlights a strong expansion in market reach and sales volume.
- Gross Profit Margin Volatility and Peak
- The gross profit margin exhibited a period of moderate volatility between May 2021 and January 2023, reaching a low of 55.39% in January 2023. Following this trough, a sustained upward trend was observed, with the margin climbing steadily over two years to reach a peak of 59.34% in May 2025. This expansion suggests a period of enhanced pricing power or improved efficiencies in the cost of goods sold.
- Recent Margin Compression
- A notable downward trend in the gross profit margin emerged after the peak in May 2025. The margin declined to 58.41% in November 2025 and continued to fall to 56.60% in February 2026, eventually settling at 56.11% in August 2026. This contraction indicates that while revenue continued to be generated at high levels, the percentage of each revenue dollar retained as gross profit diminished, returning to levels similar to those seen in the 2021-2022 period.
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Operating Profit Margin
lululemon athletica inc., operating profit margin calculation (quarterly data)
| Aug 2, 2026 | May 3, 2026 | Feb 1, 2026 | Nov 2, 2025 | Aug 3, 2025 | May 4, 2025 | Feb 2, 2025 | Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Income from operations | 453,653) | 276,946) | 812,290) | 435,886) | 523,814) | 438,625) | 1,042,168) | 490,661) | 540,226) | 432,642) | 913,890) | 338,115) | 479,257) | 401,414) | 314,426) | 352,427) | 401,208) | 260,347) | 590,556) | 257,947) | 291,031) | 193,821) | |||||||
| Net revenue | 2,415,631) | 2,471,603) | 3,640,801) | 2,565,920) | 2,525,219) | 2,370,660) | 3,611,497) | 2,396,660) | 2,371,078) | 2,208,891) | 3,205,103) | 2,204,218) | 2,209,165) | 2,000,792) | 2,771,838) | 1,856,889) | 1,868,328) | 1,613,463) | 2,129,113) | 1,450,421) | 1,450,618) | 1,226,465) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Operating profit margin1 | 17.84% | 18.29% | 19.91% | 22.04% | 22.88% | 23.36% | 23.67% | 23.35% | 22.27% | 22.02% | 22.17% | 16.69% | 17.51% | 17.29% | 16.38% | 21.49% | 21.38% | 21.07% | 21.31% | 20.50% | 20.78% | 19.71% | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||||||||
| Nike Inc. | — | — | 8.18% | 6.03% | 6.54% | 7.36% | 7.99% | 10.30% | 11.18% | 11.83% | 12.29% | 11.61% | 11.76% | 11.32% | 11.55% | 12.17% | 12.99% | 13.25% | 14.29% | 15.21% | 15.48% | 15.79% | |||||||
Based on: 10-Q (reporting date: 2026-08-02), 10-Q (reporting date: 2026-05-03), 10-K (reporting date: 2026-02-01), 10-Q (reporting date: 2025-11-02), 10-Q (reporting date: 2025-08-03), 10-Q (reporting date: 2025-05-04), 10-K (reporting date: 2025-02-02), 10-Q (reporting date: 2024-10-27), 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-K (reporting date: 2024-01-28), 10-Q (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-29), 10-Q (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-K (reporting date: 2022-01-30), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02).
1 Q2 2027 Calculation
Operating profit margin = 100
× (Income from operationsQ2 2027
+ Income from operationsQ1 2027
+ Income from operationsQ4 2026
+ Income from operationsQ3 2026)
÷ (Net revenueQ2 2027
+ Net revenueQ1 2027
+ Net revenueQ4 2026
+ Net revenueQ3 2026)
= 100 × (453,653 + 276,946 + 812,290 + 435,886)
÷ (2,415,631 + 2,471,603 + 3,640,801 + 2,565,920)
= 17.84%
2 Click competitor name to see calculations.
The operating profit margin exhibits a cyclical pattern characterized by periods of stability, a significant contraction, a strong recovery to peak efficiency, and a subsequent gradual decline over the analyzed period.
- Initial Stability and Moderate Growth (May 2021 – October 2022)
- During this interval, the operating profit margin remained relatively stable, fluctuating within a narrow band between 19.71% and 21.49%. This period indicates a consistent ability to convert net revenue into operating income, with a gradual upward trajectory peaking in October 2022.
- Margin Compression Phase (January 2023 – October 2023)
- A notable decline in profitability is observed starting in January 2023, where the margin dropped sharply to 16.38%. The margin remained suppressed throughout the calendar year, struggling to recover above 17.51%. This contraction occurred despite continued growth in net revenue, suggesting that operating expenses grew at a faster rate than sales during this timeframe.
- Recovery and Peak Performance (January 2024 – February 2025)
- A strong recovery began in January 2024, with the operating profit margin jumping to 22.17%. Profitability continued to expand, reaching a peak of 23.67% in February 2025. This phase represents the highest level of operational efficiency in the dataset, characterized by a significant increase in income from operations relative to revenue growth.
- Recent Downward Trend (May 2025 – August 2026)
- Following the February 2025 peak, a consistent downward trend in margins is evident. The ratio declined steadily from 23.36% in February 2025 to 17.84% by August 2026. This trend indicates a diminishing return on sales, as the operating profit margin has returned to levels similar to those seen during the 2023 compression phase.
Overall, while net revenue shows a general upward trend with significant seasonal spikes in January of each year, the operating profit margin does not follow a linear growth path. The volatility suggests that the company's operational cost structure is subject to periodic fluctuations that impact bottom-line efficiency regardless of top-line revenue increases.
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Net Profit Margin
lululemon athletica inc., net profit margin calculation (quarterly data)
| Aug 2, 2026 | May 3, 2026 | Feb 1, 2026 | Nov 2, 2025 | Aug 3, 2025 | May 4, 2025 | Feb 2, 2025 | Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Net income | 329,223) | 195,048) | 586,871) | 306,835) | 370,905) | 314,572) | 748,403) | 351,870) | 392,922) | 321,421) | 669,468) | 248,714) | 341,603) | 290,405) | 119,811) | 255,470) | 289,521) | 189,998) | 434,504) | 187,788) | 208,074) | 144,956) | |||||||
| Net revenue | 2,415,631) | 2,471,603) | 3,640,801) | 2,565,920) | 2,525,219) | 2,370,660) | 3,611,497) | 2,396,660) | 2,371,078) | 2,208,891) | 3,205,103) | 2,204,218) | 2,209,165) | 2,000,792) | 2,771,838) | 1,856,889) | 1,868,328) | 1,613,463) | 2,129,113) | 1,450,421) | 1,450,618) | 1,226,465) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Net profit margin1 | 12.78% | 13.03% | 14.22% | 15.72% | 16.38% | 16.82% | 17.14% | 17.05% | 16.34% | 16.09% | 16.12% | 10.89% | 11.40% | 11.24% | 10.54% | 15.66% | 15.60% | 15.36% | 15.59% | 14.87% | 14.96% | 14.17% | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||||||||
| Nike Inc. | — | — | 6.70% | 4.84% | 5.43% | 6.23% | 6.95% | 9.43% | 9.98% | 10.60% | 11.10% | 10.14% | 10.28% | 9.82% | 9.90% | 10.82% | 11.47% | 11.96% | 12.94% | 13.06% | 13.32% | 13.17% | |||||||
Based on: 10-Q (reporting date: 2026-08-02), 10-Q (reporting date: 2026-05-03), 10-K (reporting date: 2026-02-01), 10-Q (reporting date: 2025-11-02), 10-Q (reporting date: 2025-08-03), 10-Q (reporting date: 2025-05-04), 10-K (reporting date: 2025-02-02), 10-Q (reporting date: 2024-10-27), 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-K (reporting date: 2024-01-28), 10-Q (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-29), 10-Q (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-K (reporting date: 2022-01-30), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02).
1 Q2 2027 Calculation
Net profit margin = 100
× (Net incomeQ2 2027
+ Net incomeQ1 2027
+ Net incomeQ4 2026
+ Net incomeQ3 2026)
÷ (Net revenueQ2 2027
+ Net revenueQ1 2027
+ Net revenueQ4 2026
+ Net revenueQ3 2026)
= 100 × (329,223 + 195,048 + 586,871 + 306,835)
÷ (2,415,631 + 2,471,603 + 3,640,801 + 2,565,920)
= 12.78%
2 Click competitor name to see calculations.
The analysis of net profit margins reveals a cyclical and volatile trajectory over the period from May 2021 to August 2026. While net revenue shows a general upward trend, the conversion of that revenue into net income has experienced significant fluctuations, indicating varying levels of operational efficiency and cost management over time.
- Initial Stability Phase
- From May 2021 through October 2022, the net profit margin remained relatively consistent, fluctuating within a narrow band between 14.17% and 15.66%. This period indicates a stable relationship between revenue growth and expense management.
- Profitability Contraction
- A notable decline occurred in early 2023, with the net profit margin dropping sharply to 10.54% in January. Margins remained depressed throughout most of 2023, struggling to move beyond 11.40%, which represents the lowest profitability trough in the observed timeline.
- Recovery and Peak Expansion
- A robust recovery phase began in January 2024, as margins climbed back to 16.12%. This upward momentum continued through 2024 and into early 2025, culminating in a peak net profit margin of 17.14% in February 2025, the highest point of profitability efficiency recorded.
- Recent Downward Trend
- Following the February 2025 peak, a sustained downward trajectory is evident. From May 2025 through August 2026, the net profit margin steadily declined from 16.82% to 12.78%. This trend indicates a gradual compression of net earnings relative to revenue toward the conclusion of the period.
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Return on Equity (ROE)
lululemon athletica inc., ROE calculation (quarterly data)
| Aug 2, 2026 | May 3, 2026 | Feb 1, 2026 | Nov 2, 2025 | Aug 3, 2025 | May 4, 2025 | Feb 2, 2025 | Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Net income | 329,223) | 195,048) | 586,871) | 306,835) | 370,905) | 314,572) | 748,403) | 351,870) | 392,922) | 321,421) | 669,468) | 248,714) | 341,603) | 290,405) | 119,811) | 255,470) | 289,521) | 189,998) | 434,504) | 187,788) | 208,074) | 144,956) | |||||||
| Stockholders’ equity | 4,791,174) | 4,825,601) | 4,961,840) | 4,502,023) | 4,387,279) | 4,289,570) | 4,324,047) | 3,985,732) | 4,031,645) | 4,219,808) | 4,232,081) | 3,525,849) | 3,533,482) | 3,320,076) | 3,148,799) | 3,039,204) | 2,857,798) | 2,668,050) | 2,740,046) | 2,658,455) | 2,671,166) | 2,639,855) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| ROE1 | 29.60% | 30.25% | 31.83% | 38.67% | 40.70% | 42.14% | 41.97% | 43.55% | 40.49% | 37.47% | 36.63% | 28.38% | 28.51% | 28.77% | 27.15% | 38.48% | 38.55% | 38.24% | 35.60% | 32.75% | 30.94% | 26.71% | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||||||||
| Nike Inc. | — | — | 20.91% | 15.97% | 17.92% | 21.50% | 24.36% | 32.18% | 34.81% | 38.02% | 39.50% | 36.77% | 37.46% | 36.16% | 36.20% | 37.70% | 36.89% | 35.65% | 39.57% | 41.30% | 41.34% | 42.41% | |||||||
Based on: 10-Q (reporting date: 2026-08-02), 10-Q (reporting date: 2026-05-03), 10-K (reporting date: 2026-02-01), 10-Q (reporting date: 2025-11-02), 10-Q (reporting date: 2025-08-03), 10-Q (reporting date: 2025-05-04), 10-K (reporting date: 2025-02-02), 10-Q (reporting date: 2024-10-27), 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-K (reporting date: 2024-01-28), 10-Q (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-29), 10-Q (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-K (reporting date: 2022-01-30), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02).
1 Q2 2027 Calculation
ROE = 100
× (Net incomeQ2 2027
+ Net incomeQ1 2027
+ Net incomeQ4 2026
+ Net incomeQ3 2026)
÷ Stockholders’ equity
= 100 × (329,223 + 195,048 + 586,871 + 306,835)
÷ 4,791,174 = 29.60%
2 Click competitor name to see calculations.
The financial performance from May 2021 through August 2026 is characterized by significant volatility in Return on Equity (ROE), driven by seasonal fluctuations in net income and a consistent expansion of the stockholders' equity base. While the company experienced periods of high capital efficiency, a gradual decline in ROE is observed toward the end of the analyzed period.
- Return on Equity (ROE) Trajectory
- ROE exhibited a multi-phase movement over the period. An initial growth phase occurred between May 2021 and July 2022, where the ratio climbed from 26.71% to a peak of 38.55%. This was followed by a contraction in early 2023, with ROE dropping to 27.15% in January 2023. A second, more pronounced peak was reached between October 2024 and May 2025, with the ratio peaking at 43.55% in October 2024. However, a sustained downward trend emerged in 2026, with ROE falling to 29.60% by August 2026.
- Net Income Seasonality and Impact
- Net income demonstrates a strong seasonal pattern, with significant spikes occurring consistently in the January/February quarters. Notable peaks include January 2022 (US$ 434.5 million), January 2024 (US$ 669.5 million), and February 2025 (US$ 748.4 million). These quarterly surges in profitability directly correlate with the periodic peaks in ROE, indicating that the company's overall profitability ratios are heavily influenced by year-end seasonal performance.
- Stockholders' Equity Expansion
- The equity base showed a steady and consistent upward trajectory, increasing from US$ 2.64 billion in May 2021 to US$ 4.79 billion by August 2026. This growth in the equity denominator creates a higher threshold for maintaining high ROE levels. The decline in ROE observed in 2026, despite net income remaining substantial, suggests that the growth in equity began to outpace the growth in net income during the final stages of the period.
- Profitability Efficiency Analysis
- The peak efficiency period between late 2024 and early 2025 represents the highest utilization of shareholder capital, where ROE remained above 40%. The subsequent decline toward 29.60% in 2026 indicates a regression toward the baseline levels observed in 2021 and 2023, reflecting a potential normalization of profit margins or a dilution of equity efficiency as the company scaled.
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Return on Assets (ROA)
lululemon athletica inc., ROA calculation (quarterly data)
| Aug 2, 2026 | May 3, 2026 | Feb 1, 2026 | Nov 2, 2025 | Aug 3, 2025 | May 4, 2025 | Feb 2, 2025 | Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Net income | 329,223) | 195,048) | 586,871) | 306,835) | 370,905) | 314,572) | 748,403) | 351,870) | 392,922) | 321,421) | 669,468) | 248,714) | 341,603) | 290,405) | 119,811) | 255,470) | 289,521) | 189,998) | 434,504) | 187,788) | 208,074) | 144,956) | |||||||
| Total assets | 8,484,578) | 8,531,441) | 8,456,743) | 7,955,192) | 7,523,439) | 7,430,543) | 7,603,292) | 7,083,669) | 6,744,135) | 6,828,495) | 7,091,941) | 6,022,264) | 5,992,458) | 5,571,544) | 5,607,038) | 5,309,436) | 4,920,711) | 4,697,212) | 4,942,478) | 4,572,007) | 4,405,098) | 4,329,831) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| ROA1 | 16.71% | 17.11% | 18.67% | 21.88% | 23.74% | 24.33% | 23.87% | 24.50% | 24.21% | 23.16% | 21.86% | 16.61% | 16.81% | 17.14% | 15.25% | 22.03% | 22.39% | 21.72% | 19.73% | 19.04% | 18.76% | 16.29% | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||||||||
| Nike Inc. | — | — | 8.09% | 6.07% | 6.68% | 7.75% | 8.80% | 11.93% | 12.87% | 14.00% | 14.96% | 14.00% | 14.24% | 13.73% | 13.51% | 14.31% | 14.21% | 13.73% | 14.99% | 15.45% | 15.85% | 16.04% | |||||||
Based on: 10-Q (reporting date: 2026-08-02), 10-Q (reporting date: 2026-05-03), 10-K (reporting date: 2026-02-01), 10-Q (reporting date: 2025-11-02), 10-Q (reporting date: 2025-08-03), 10-Q (reporting date: 2025-05-04), 10-K (reporting date: 2025-02-02), 10-Q (reporting date: 2024-10-27), 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-K (reporting date: 2024-01-28), 10-Q (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-29), 10-Q (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-K (reporting date: 2022-01-30), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02).
1 Q2 2027 Calculation
ROA = 100
× (Net incomeQ2 2027
+ Net incomeQ1 2027
+ Net incomeQ4 2026
+ Net incomeQ3 2026)
÷ Total assets
= 100 × (329,223 + 195,048 + 586,871 + 306,835)
÷ 8,484,578 = 16.71%
2 Click competitor name to see calculations.
The financial performance over the analyzed period is characterized by a substantial expansion of the asset base coupled with cyclical fluctuations in net income, resulting in a variable Return on Assets (ROA) profile.
- Asset Base Expansion
- A consistent upward trajectory in total assets is observed, growing from approximately 4.33 billion USD in May 2021 to 8.48 billion USD by August 2026. This represents a near doubling of the company's total resources over the five-year period, indicating significant investment in infrastructure, inventory, or other capital assets.
- Net Income Seasonality
- Net income exhibits a pronounced seasonal pattern, with recurring peaks occurring in the first quarter of the calendar year. Notable spikes are evident in January 2022 (434.5 million USD), January 2024 (669.5 million USD), and February 2025 (748.4 million USD). Conversely, lower earnings are typically recorded in the spring and summer quarters, reflecting a cyclical revenue cycle.
- Return on Assets (ROA) Trends
- The ROA demonstrates three distinct phases: an initial growth phase from May 2021 to July 2022, where ratios rose from 16.29% to 22.39%; a volatile recovery phase between 2023 and 2024, reaching a peak of 24.50% in October 2024; and a subsequent contraction phase beginning in late 2025. By August 2026, the ROA declined to 16.71%, returning to levels similar to those observed at the start of the period.
- Profitability Efficiency Analysis
- The divergence between the steadily increasing asset base and the fluctuating ROA suggests that asset growth eventually outpaced net income growth. While the company achieved peak efficiency in late 2024, the downward trend in ROA throughout 2026 indicates a diminishing return on the expanded asset base, as the increase in total assets to 8.48 billion USD was not matched by a proportional increase in quarterly net income during the final periods of the analysis.
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