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: 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).
- Gross Profit Margin
- The gross profit margin exhibited a generally upward trend over the analyzed periods. Starting at 55.87% in 2020, it experienced minor fluctuations but increased overall, peaking at 59.22% by 2025. This indicates improved efficiency in managing production costs relative to revenue generated.
- Operating Profit Margin
- The operating profit margin showed some volatility, decreasing from 22.34% in 2020 to 18.63% in 2021, then recovering to 21.31% in 2022. It dipped again to 16.38% in 2023 before rising steadily to reach 23.67% in 2025, the highest in the period examined. This pattern suggests periods of operational challenges followed by significant improvements in controlling operating expenses.
- Net Profit Margin
- The net profit margin followed a somewhat similar pattern to the operating margin. It declined from 16.22% in 2020 to a low of 10.54% in 2023 but rebounded to 17.14% by 2025. The recovery toward the end of the period indicates enhanced overall profitability after accounting for all expenses, taxes, and non-operating items.
- Return on Equity (ROE)
- ROE demonstrated notable fluctuations throughout the timeline. It declined sharply from 33.07% in 2020 to 23.02% in 2021 but then increased substantially to 35.6% in 2022. After a decrease to 27.15% in 2023, ROE rose again, reaching an impressive 41.97% in 2025. This signifies a strong capacity to generate profits from shareholders' equity despite some interim volatility.
- Return on Assets (ROA)
- ROA experienced a similar trend to ROE but at a lower level, indicating efficient use of assets to generate earnings. It declined from 19.67% in 2020 to 14.07% in 2021, then rebounded to 19.73% in 2022. After a drop to 15.25% in 2023, ROA increased steadily, reaching 23.87% in 2025. This reflects overall asset utilization improvements in the later years.
Return on Sales
Return on Investment
Gross Profit Margin
lululemon athletica inc., gross profit margin calculation, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Gross profit | 6,270,811) | 5,609,405) | 4,492,340) | 3,608,565) | 2,463,991) | 2,223,386) | |
| Net revenue | 10,588,126) | 9,619,278) | 8,110,518) | 6,256,617) | 4,401,879) | 3,979,296) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 59.22% | 58.31% | 55.39% | 57.68% | 55.98% | 55.87% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Nike Inc. | — | 44.56% | 43.52% | 45.98% | 44.82% | 43.42% | |
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).
1 2025 Calculation
Gross profit margin = 100 × Gross profit ÷ Net revenue
= 100 × 6,270,811 ÷ 10,588,126 = 59.22%
2 Click competitor name to see calculations.
- Gross Profit
- The gross profit exhibited a consistent upward trajectory over the observed periods. Starting from approximately $2.22 billion, it rose steadily each year, reaching around $6.27 billion by the final recorded period. This represents nearly a threefold increase over the span of six years, indicating strong growth in the company's earnings from core operations before accounting for expenses.
- Net Revenue
- Net revenue followed a similar growth pattern, increasing consistently from about $3.98 billion in the earliest period to approximately $10.59 billion in the latest period. The revenue more than doubled over the timeframe, demonstrating expanding sales and market presence. The steady increase suggests effective sales strategies and growing consumer demand.
- Gross Profit Margin
- The gross profit margin remained relatively stable but showed a slight general upward trend. Starting at around 55.87%, the margin fluctuated somewhat in the intermediate years, dipping slightly in the fourth period to 55.39%. However, it improved subsequently to reach above 59% in the most recent period. This improvement implies enhanced cost control or pricing power, contributing to increased profitability relative to revenue.
- Overall Analysis
- The data reflects robust financial growth highlighted by significant increases in both gross profit and net revenue. The upward trend in gross profit margin further emphasizes operational efficiency gains. Together, these trends indicate a strengthening financial position, driven by increased sales volume and effective management of production costs.
Operating Profit Margin
lululemon athletica inc., operating profit margin calculation, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Income from operations | 2,505,697) | 2,132,676) | 1,328,408) | 1,333,355) | 819,986) | 889,110) | |
| Net revenue | 10,588,126) | 9,619,278) | 8,110,518) | 6,256,617) | 4,401,879) | 3,979,296) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 23.67% | 22.17% | 16.38% | 21.31% | 18.63% | 22.34% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Nike Inc. | — | 12.29% | 11.55% | 14.29% | 15.58% | 8.33% | |
| Operating Profit Margin, Sector | |||||||
| Consumer Durables & Apparel | — | 13.85% | 12.21% | 15.12% | 15.85% | 9.68% | |
| Operating Profit Margin, Industry | |||||||
| Consumer Discretionary | — | 11.04% | 9.12% | 8.47% | 8.79% | 6.48% | |
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).
1 2025 Calculation
Operating profit margin = 100 × Income from operations ÷ Net revenue
= 100 × 2,505,697 ÷ 10,588,126 = 23.67%
2 Click competitor name to see calculations.
- Income from operations
- Income from operations exhibited a rising trend over the analyzed periods, starting at approximately 889 million USD in early 2020 and reaching around 2.51 billion USD by early 2025. A noticeable dip occurred between 2020 and 2021, descending from roughly 889 million to 820 million USD, followed by a significant surge in 2022, exceeding 1.3 billion USD. This upward momentum continued, with a substantial increase recorded between 2023 and 2024, where income from operations surpassed 2.13 billion USD, culminating in the highest value in 2025.
- Net revenue
- Net revenue showed consistent growth throughout the timeline, with figures nearly doubling from approximately 4.0 billion USD in 2020 to over 10.5 billion USD by 2025. Each year marked a substantive increase, notably accelerating after 2021. The growth trend in net revenue suggests strong sales performance and expanding market presence during the period under review.
- Operating profit margin
- Operating profit margin experienced fluctuations rather than steady growth. The margin began at 22.34% in early 2020, decreased steadily to a low of 16.38% in early 2023, indicating rising operating costs or pricing pressures despite increasing revenue. However, this trend reversed from 2023 onwards, with margins improving significantly to 22.17% in 2024 and further to 23.67% in 2025. The recovery suggests enhanced operational efficiency or improved pricing strategy in the later periods.
- Summary of trends
- The overall financial performance indicates robust revenue growth accompanied by increasing income from operations, highlighting effective expansion and scaling efforts. Although operating profitability saw a period of decline, the recent upturn in margin percentages points to successful management responses to earlier pressures. The data reflects a mature growth phase with indications of improved cost control and profitability in the most recent years.
Net Profit Margin
lululemon athletica inc., net profit margin calculation, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net income | 1,814,616) | 1,550,190) | 854,800) | 975,322) | 588,913) | 645,596) | |
| Net revenue | 10,588,126) | 9,619,278) | 8,110,518) | 6,256,617) | 4,401,879) | 3,979,296) | |
| Profitability Ratio | |||||||
| Net profit margin1 | 17.14% | 16.12% | 10.54% | 15.59% | 13.38% | 16.22% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Nike Inc. | — | 11.10% | 9.90% | 12.94% | 12.86% | 6.79% | |
| Net Profit Margin, Sector | |||||||
| Consumer Durables & Apparel | — | 11.89% | 9.99% | 13.26% | 12.91% | 7.70% | |
| Net Profit Margin, Industry | |||||||
| Consumer Discretionary | — | 8.74% | 7.92% | 5.15% | 9.20% | 5.24% | |
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).
1 2025 Calculation
Net profit margin = 100 × Net income ÷ Net revenue
= 100 × 1,814,616 ÷ 10,588,126 = 17.14%
2 Click competitor name to see calculations.
The financial data presents several key trends and insights related to the company's net income, net revenue, and net profit margin over a six-year period.
- Net Income
- There is an overall upward trajectory in net income from 2020 to 2025. Starting at $645.6 million in 2020, net income saw a decline in 2021 to approximately $588.9 million. However, from 2021 onward, it substantially increased, particularly in 2022 reaching $975.3 million. Although there was a slight drop in 2023 to $854.8 million, the figure rebounded strongly in 2024 to $1.55 billion and continued to grow in 2025, achieving $1.81 billion.
- Net Revenue
- Net revenue demonstrated consistent growth throughout the period. It began at roughly $3.98 billion in 2020 and increased each subsequent year. By 2021, revenue rose to $4.40 billion, then made a marked increase in 2022 to $6.26 billion. This upward momentum continued with revenue reaching over $8.11 billion in 2023, nearly $9.62 billion in 2024, and surpassing $10.59 billion in 2025.
- Net Profit Margin
- The net profit margin shows fluctuating percentages across the years. The margin started at 16.22% in 2020 but decreased in 2021 to 13.38%. It recovered in 2022, improving to 15.59%, before dipping again in 2023 to a low point of 10.54%. Following this decline, the margin climbed significantly in 2024 to 16.12% and increased further in 2025 to 17.14%, indicating enhanced profitability relative to revenue in the most recent years.
In summary, the data reveals steady growth in net revenue with some volatility in net income in the earlier years followed by strong gains in the latter years. Despite fluctuations in net profit margin, the most recent period shows an improvement that aligns with the highest levels of net income and revenue, suggesting an overall positive trend in financial performance.
Return on Equity (ROE)
lululemon athletica inc., ROE calculation, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net income | 1,814,616) | 1,550,190) | 854,800) | 975,322) | 588,913) | 645,596) | |
| Stockholders’ equity | 4,324,047) | 4,232,081) | 3,148,799) | 2,740,046) | 2,558,566) | 1,952,218) | |
| Profitability Ratio | |||||||
| ROE1 | 41.97% | 36.63% | 27.15% | 35.60% | 23.02% | 33.07% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Nike Inc. | — | 39.50% | 36.20% | 39.57% | 44.86% | 31.52% | |
| ROE, Sector | |||||||
| Consumer Durables & Apparel | — | 38.85% | 34.54% | 38.96% | 41.21% | 31.82% | |
| ROE, Industry | |||||||
| Consumer Discretionary | — | 28.36% | 30.61% | 21.65% | 34.37% | 25.29% | |
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).
1 2025 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 1,814,616 ÷ 4,324,047 = 41.97%
2 Click competitor name to see calculations.
The annual financial trends reveal notable fluctuations and growth patterns in net income, stockholders' equity, and return on equity (ROE) over the reported periods.
- Net Income
- Net income exhibited variability with a decline from 645,596 thousand US dollars in early 2020 to 588,913 thousand in early 2021. This was followed by a significant increase in 2022, reaching 975,322 thousand US dollars. A slight decrease occurred in 2023 with net income at 854,800 thousand US dollars. However, the trend sharply reversed with substantial growth in 2024 and 2025, with net income rising to 1,550,190 thousand and 1,814,616 thousand US dollars, respectively.
- Stockholders’ Equity
- Stockholders’ equity consistently increased each year, starting from 1,952,218 thousand US dollars in early 2020 and growing steadily to 4,324,047 thousand US dollars by early 2025. The growth in equity reflects a strengthening capital base and is indicative of reinvested earnings or equity financing over the period.
- Return on Equity (ROE)
- The ROE percentage displayed some volatility but generally maintained a strong performance level. It began at 33.07% in 2020, dropped to 23.02% in 2021, surged to 35.60% in 2022, then decreased again to 27.15% in 2023. The last two years showed an upward trend, with ROE increasing to 36.63% in 2024 and peaking at 41.97% in 2025. This pattern suggests enhanced efficiency in generating earnings from shareholders’ equity over time.
Overall, the company's financial data indicate variable but predominantly positive trends in profitability and equity growth, culminating in increasingly efficient utilization of shareholders’ funds as evidenced by the rising ROE in the most recent years.
Return on Assets (ROA)
lululemon athletica inc., ROA calculation, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net income | 1,814,616) | 1,550,190) | 854,800) | 975,322) | 588,913) | 645,596) | |
| Total assets | 7,603,292) | 7,091,941) | 5,607,038) | 4,942,478) | 4,185,215) | 3,281,354) | |
| Profitability Ratio | |||||||
| ROA1 | 23.87% | 21.86% | 15.25% | 19.73% | 14.07% | 19.67% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Nike Inc. | — | 14.96% | 13.51% | 14.99% | 15.17% | 8.10% | |
| ROA, Sector | |||||||
| Consumer Durables & Apparel | — | 16.04% | 13.73% | 15.51% | 15.06% | 9.20% | |
| ROA, Industry | |||||||
| Consumer Discretionary | — | 8.18% | 7.66% | 4.94% | 8.07% | 4.42% | |
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).
1 2025 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 1,814,616 ÷ 7,603,292 = 23.87%
2 Click competitor name to see calculations.
- Net Income
- The net income demonstrates a fluctuating but generally upward trend over the period analyzed. Starting at 645,596 thousand US dollars, it decreased to 588,913 thousand in the following year but then rose sharply to 975,322 thousand. A slight dip occurred the next year at 854,800 thousand, followed by significant growth to 1,550,190 thousand and 1,814,616 thousand in the most recent years. This pattern indicates overall strong profitability with notable acceleration in later years.
- Total Assets
- Total assets exhibit a continuous increase across the full timeline. Beginning at 3,281,354 thousand US dollars, assets grew steadily each year—to 4,185,215, 4,942,478, 5,607,038, 7,091,941, and finally 7,603,292 thousand—showing consistent expansion of the company’s asset base. This suggests strategic asset accumulation correlating with business growth.
- Return on Assets (ROA)
- Return on assets shows variability but an overall upward trajectory in performance. The ROA started high at 19.67% in the first year, dropped to 14.07% the following year, then rose again to 19.73%. It experienced a decline to 15.25% before increasing steadily to 21.86% and 23.87% in the last two periods. This indicates efficiency in generating returns from assets improved significantly in recent years.
- Overall Analysis
- The data indicates a company that is growing both in profitability and asset size while improving asset utilization efficiency. The fluctuations in net income and ROA suggest some variability in operational performance year-to-year; however, the upward trends in the last periods reflect strengthening financial health and enhanced management effectiveness. Consistent asset growth supports the capability for sustained revenue generation and profitability expansion moving forward.