Lululemon Athletica (LULU)
NASDAQConsumer DiscretionaryApparel - RetailSnapshot 2026-09-04
$100.61-17.38%
Close 2026-09-04 · 1-day change
NASDAQConsumer DiscretionaryApparel - RetailSnapshot 2026-09-04
QuarterlyIQ Insights · LULU
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Met or beat guidance 100% of the last 8 guided quarters · 12.8% avg surprise
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Focus on accelerating growth through stronger product innovation, marketing investments, and disciplined expense management.
Stated as a priority in 3 of last 3 quarters. Revenue declined 4% in 2026-Q3 to $2.4B after a 4% increase in 2026-Q1 to $2.5B, showing mixed top-line trends. Management emphasizes product and marketing investments to accelerate growth, but recent revenue trajectory is declining, indicating limited progress so far.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 1 of the last 3 quarter-over-quarter moves. Historically, Consumer Discretionary names rated neutral grew net income 45% of the time over the next year (vs 59% for the rest of the cohort, n=6943).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
“Our teams remain focused on accelerating growth by strengthening our product offerings, increasing our marketing investments, and maintaining disciplined expense management.”
“Our teams executed with speed, agility, and discipline... we remain confident in our path forward.”
“We continued to grow our lululemon community as we entered new markets and elevated our product, brand, and guest experiences.”
Continue disciplined expense management and operational rigor to support profitability amid challenging dynamics.
Management stated disciplined expense management in 3 of last 3 quarters. Operating margin declined from 20.7% in 2025-Q2 to 18.8% in 2026-Q2, reflecting margin pressure despite expense discipline. The trajectory shows limited progress in margin improvement amid challenging conditions.
“Our teams remain focused on... maintaining disciplined expense management.”
“We experienced a solid start... executed with speed, agility, and discipline.”
“We will continue to leverage our strong financial position to invest in our growth initiatives, while maintaining operational rigor.”
Grow retail presence by opening net new company-operated stores to increase market reach.
Management stated store expansion in 3 of last 3 quarters. Company-operated stores grew from 796 in 2025-Q3 to 825 in 2026-Q2, reflecting steady expansion. The trajectory is delivering consistent growth in retail footprint.
“The Company opened nine net new company-operated stores during the second quarter, ending with 825 stores.”
“The Company opened five net new company-operated stores during the first quarter, ending with 816 stores.”
“The Company opened 12 net new company-operated stores during the third quarter, ending with 796 stores.”
Continue share repurchases as part of capital allocation strategy, with recent board authorization increases.
Share repurchase program stated in 4 of last 4 quarters. The company repurchased 2.7M shares in 2026-Q1 and 2.2M shares in 2026-Q2, with board authorization increases in 2025. The trajectory shows consistent execution of repurchases aligned with stated capital allocation.
“The Company repurchased 2.2 million of its shares for a cost of $358.3 million.”
“The Company repurchased 2.7 million of its shares for a cost of $330.0 million.”
“Board authorized $1.0 billion increase in stock repurchase program.”
“The Company repurchased 1.0 million shares for $189.0 million; Board approved $1.0 billion increase to repurchase program.”
Respond to macroeconomic and industry headwinds by adjusting outlook and taking prudent actions to reposition the business.
Management stated navigating challenging dynamics and revised outlook in 2 of last 3 quarters. Full-year 2026 revenue guidance was lowered to $10.35B-$10.5B, a 5%-7% decline from prior year $11.0B. The trajectory reflects prudent adjustment to market headwinds with limited growth delivery.
“We continue to navigate some challenging dynamics and are taking a prudent approach with our revised full-year outlook.”
“We have assessed the business and are taking additional actions to reposition where needed and further strengthen our product engine.”
Over the trailing year it converted 1.33x of net income into operating cash flow. Historically, Consumer Discretionary names rated neutral grew net income 49% of the time over the next year (vs 49% for the rest of the cohort, n=4864).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, long-term interest rates, Fed net liquidity, real (inflation-adjusted) rates (low R² over the window).
11 material management or governance events in the past 24 months, led by executive changes. Historically, Consumer Discretionary names rated neutral grew net income 48% of the time over the next year (vs 53% for the rest of the cohort, n=2538).
Not investment advice. As of 2026-09-04.