lululemon athletica inc. (NASDAQ:LULU)

Price to Earnings (P/E) Ratio

The P/E ratio demonstrated an overall declining trend from May 2020 through November 2025. Initially, it remained high, peaking around 86.35 in late 2020, followed by a steady decrease with some intermittent fluctuations. By early 2024 and continuing into late 2025, the ratio showed a marked reduction, falling below 15 towards the end of the observation period. This suggests a decreasing market valuation relative to earnings or a potential increase in earnings over time.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio followed a pattern similar to the P/E ratio, starting at relatively elevated levels and gradually declining over the time span. The peak levels occurred in mid to late 2020, after which the ratio steadily dropped, particularly from 2023 onward. By the final quarters, the ratio was approaching single digits, indicating a notable reduction in price relative to operating profit.

Price to Sales (P/S) Ratio

The P/S ratio initially showed modest fluctuations, remaining above 10 during the early periods but started a clear downward trajectory around 2021. The decline continued consistently into 2024 and 2025, with the ratio dropping to below 2 by the end of the timeframe. This reflects a decreasing price in relation to sales, possibly due to sales growth outpacing stock price increases or shifting investor perceptions.

Price to Book Value (P/BV) Ratio

The P/BV ratio exhibited a significant decrease over the reporting periods. After peaking above 22 in mid-2020, it began a downward trend marked by occasional moderate rebounds. The decline steepened after early 2023, with the ratio falling below 5 by late 2025. This points to a shrinking premium over the book value, suggesting changing market sentiment or an increase in book value relative to market price.

Overall Financial Valuation Trends

Across all valuation metrics presented, there is a clear and consistent downward trend spanning the periods from 2020 to 2025. The decrease in multiples indicates either an improvement in underlying financial performance metrics such as earnings, operating profit, sales, and book value, or a significant market revaluation resulting in lower price-related ratios. The leveling off and low ratios in the latest periods suggest a transition to a more conservative or potentially undervalued market position relative to historical levels.

Share Price Trend

The share price experienced notable fluctuations over the analyzed periods. Initially, there was an upward movement from approximately $308 to around $417 by late 2021. A downward adjustment followed, with prices descending to near $259 in mid-2024. Subsequently, the price rose again, reaching a peak above $480 by early 2024. In the final observed quarters, the share price trended downward, declining notably towards approximately $187 by late 2025.

Earnings Per Share (EPS) Trend

Earnings per share demonstrated a generally upward trajectory throughout the timeframe. Starting at $4.44, EPS steadily increased, surpassing $15 in the later periods. There were occasional increments of varying magnitudes, including a significant jump to over $12 in early 2024. The trend indicates continued earnings growth without any material reversals.

Price-to-Earnings (P/E) Ratio Trend

The P/E ratio showed an overall declining pattern over the examined quarters. Initially elevated above 80, the ratio decreased progressively to around 13 in the final periods. This reduction suggests that either market valuations became more conservative relative to earnings or that earnings growth outpaced share price increases. Temporary upticks occurred but did not alter the downward course over the entire period.

Combined Insights

The contrasting movements between a rising EPS and a fluctuating share price resulted in a compression of the P/E ratio. The peak share price aligned approximately with elevated earnings yet was followed by a period where earnings continued rising while the share price declined, reducing the P/E ratio significantly. This pattern may reflect changing market sentiment or adjustments in growth expectations.

Share Price Trend

The share price exhibited significant volatility over the observed periods. Initially, it rose from around $308 to a peak of approximately $416 towards late 2021. Subsequently, a downward trend was observed with some fluctuations, declining towards a low of around $187 by late 2025. This decline indicates a substantial reduction in market valuation over the longer term after reaching its high point.

Operating Profit Per Share (OPPS) Trend

Operating profit per share showed a consistent upward trajectory throughout the periods. Starting at $6.09, it steadily increased to reach over $20 by the final observations, reflecting improving operational efficiency or profitability despite external market conditions. The growth in OPPS underscores strengthened earnings power on a per-share basis.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio initially was elevated, exceeding 60 at its peak, which suggested relatively high market expectations or premium valuation compared to operating profits. Over time, the ratio decreased substantially, dropping below 10 toward the end of the timeline. This decreasing ratio suggests the market price declined faster than operating profits grew, potentially indicating the stock became more attractively valued or that market sentiment towards the company softened.

Interrelation of Metrics

The inverse relationship between share price and P/OP ratio in the later periods is notable. Despite rising operating profits per share, the share price declined, leading to a compression of the valuation multiple. This scenario may reflect external factors influencing market perception or risk attributes not captured by operating profitability alone.

Summary

Overall, the data indicate a company experiencing strong and sustained growth in operating profit per share while facing a volatile and ultimately declining share price over the medium to long term. The resulting contraction in the Price to Operating Profit ratio may signal changes in investor sentiment, market conditions, or emerging risks affecting valuation multiples independently of operational performance improvements.

The analysis of the financial trends reveals a dynamic relationship between the share price and sales per share over the examined periods, along with notable fluctuations in the price-to-sales (P/S) ratio.

Share Price

The share price exhibited an overall volatile pattern across the quarters. Initially, it increased from 308.12 US$ to a peak of 416.92 US$ but experienced several declines afterwards. Noteworthy peaks occurred in October 2023 (464.67 US$) and January 2024 (478.84 US$), followed by a considerable decline reaching 187.01 US$ by November 2025. The share price demonstrates cycles of growth followed by corrections, indicating market sensitivity and potential external or internal factors influencing investor sentiment.

Sales per Share

Sales per share showed a consistent upward trend throughout all periods. Starting from 29.56 US$, sales per share gradually increased every quarter, reaching 94.4 US$ by November 2025. This steady growth reflects persistent revenue expansion on a per-share basis, which can be interpreted as an overall increase in the company’s operational performance and sales effectiveness over time.

Price-to-Sales (P/S) Ratio

The P/S ratio, which measures the share price relative to sales per share, displayed significant variability. Beginning at a high of 10.42, it fluctuated substantially, showing several peaks and troughs that correspond to the movements in share price disproportionate to sales growth. Notably, the P/S ratio dropped from above 10 in the first years to a low near 2 by the end of the observed periods, reflecting a decrease in market valuation relative to sales. This decline suggests that while sales per share increased steadily, the market assigned a lower premium to each unit of sales over time.

In summary, the data indicate robust sales growth accompanied by considerable volatility in share prices, resulting in a declining valuation multiple as captured by the P/S ratio. The decrease in P/S ratio signals changing investor expectations or market conditions that may be discounting the sales growth or anticipating future challenges. Continuous monitoring of these metrics is recommended to assess the evolving market sentiment and operational success.

Share Price

The share price exhibited significant fluctuations over the observed periods. Initially, it increased from 308.12 US$ to a peak of 464.67 US$ by October 29, 2023, indicating strong market performance and investor confidence. Following this peak, the share price declined sharply, reaching 187.01 US$ by November 2, 2025. This downward trend in the latter periods suggests a loss of investor confidence or potential external pressures affecting the stock negatively.

Book Value Per Share (BVPS)

The book value per share showed a mostly steady upward trend throughout the entire timeframe, rising from 14.1 US$ to 38.38 US$. This consistent increase suggests ongoing value accretion in the company’s net assets on a per-share basis, which is a positive indicator of financial strength and retained earnings growth over time.

Price-to-Book Value Ratio (P/BV)

The P/BV ratio declined noticeably from a very high level of 21.85 to a significantly lower range between 4.87 and 9.53 in the latest periods. Early on, the extremely high P/BV ratios indicated that shares were trading at a large premium relative to book value, reflecting strong market optimism or expectations for future growth. The substantial reduction toward the end of the period highlights a contraction in market valuation relative to book value, aligning with the falling share price and suggesting a more cautious or negative market sentiment.

Overall Analysis

The combination of rising book value per share with a declining share price and P/BV ratio points to a widening gap between fundamental asset growth and market valuation. Initially, investor enthusiasm led to high share prices and valuations. However, after peaking, market valuation diminished sharply despite continued improvements in the company's underlying book value. This divergence may prompt further investigation into external factors, industry conditions, or company-specific challenges impacting investor perception and share price performance.