Key Drivers
- High profitability
- Elevated leverage
- Low asset turnover
AIAI Summary
Treat Lululemon as a 12–18 month “earnings reset” trade—international (China) expansion and strong FCF provide upside, but investors must price in likely margin compression and earnings volatility driven by North American inventory-driven markdowns, tariffs, and high leverage until full-price sell-through and leadership stability are demonstrably restored. Actionable stance: avoid buying for steady comp growth—consider a tactical, oversold entry only if price holds above ~112 with clear sequential margin recovery, otherwise expect downside risk below ~105.
Price Chart
Financial Metrics
Deep Analysis
Research tool. Not personalized advice.
Fundamental Analysis
Key Financial Insights:
- •High profitability
- •Elevated leverage
- •Low asset turnover
The company generates strong margins and FCF (36% gross, 17% EBITDA, FCF $2.7B) but is burdened by high leverage, low capital turnover, and concentrated working capital that temper its investment appeal.
Price Behavior
Key Price Behavior Insights:
- •Below last month SMA
- •Near-term support
- •Resistance cluster
Stock is in a short-term downtrend—trading below its last month SMA (~$109.06) with lower highs and resistance near $109–$112 while sitting on near-term support at $105.60, so watch for a hold at $105.60 or a break back above ~$109 to signal a trend change.
Reached last month high $112.19 on 2026-03-02 then declined to $105.60, showing sharp short-term weakness
Sentiment & News
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