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LULU (Lululemon Athletica) ROE % : 38.09% (As of Jul. 2024)


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What is Lululemon Athletica ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Lululemon Athletica's annualized net income for the quarter that ended in Jul. 2024 was $1,572 Mil. Lululemon Athletica's average Total Stockholders Equity over the quarter that ended in Jul. 2024 was $4,126 Mil. Therefore, Lululemon Athletica's annualized ROE % for the quarter that ended in Jul. 2024 was 38.09%.

The historical rank and industry rank for Lululemon Athletica's ROE % or its related term are showing as below:

LULU' s ROE % Range Over the Past 10 Years
Min: 17.5   Med: 27.57   Max: 42.01
Current: 41.77

During the past 13 years, Lululemon Athletica's highest ROE % was 42.01%. The lowest was 17.50%. And the median was 27.57%.

LULU's ROE % is ranked better than
93.19% of 1086 companies
in the Retail - Cyclical industry
Industry Median: 5.68 vs LULU: 41.77

Lululemon Athletica ROE % Historical Data

The historical data trend for Lululemon Athletica's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Lululemon Athletica ROE % Chart

Lululemon Athletica Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 38.00 26.11 36.81 29.03 42.01

Lululemon Athletica Quarterly Data
Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 39.87 28.19 69.04 30.42 38.09

Competitive Comparison of Lululemon Athletica's ROE %

For the Apparel Retail subindustry, Lululemon Athletica's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Lululemon Athletica's ROE % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Lululemon Athletica's ROE % distribution charts can be found below:

* The bar in red indicates where Lululemon Athletica's ROE % falls into.



Lululemon Athletica ROE % Calculation

Lululemon Athletica's annualized ROE % for the fiscal year that ended in Jan. 2024 is calculated as

ROE %=Net Income (A: Jan. 2024 )/( (Total Stockholders Equity (A: Jan. 2023 )+Total Stockholders Equity (A: Jan. 2024 ))/ count )
=1550.19/( (3148.799+4232.081)/ 2 )
=1550.19/3690.44
=42.01 %

Lululemon Athletica's annualized ROE % for the quarter that ended in Jul. 2024 is calculated as

ROE %=Net Income (Q: Jul. 2024 )/( (Total Stockholders Equity (Q: Apr. 2024 )+Total Stockholders Equity (Q: Jul. 2024 ))/ count )
=1571.688/( (4219.808+4031.645)/ 2 )
=1571.688/4125.7265
=38.09 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Jul. 2024) net income data. ROE % is displayed in the 30-year financial page.


Lululemon Athletica  (NAS:LULU) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Jul. 2024 )
=Net Income/Total Stockholders Equity
=1571.688/4125.7265
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1571.688 / 9484.312)*(9484.312 / 6786.315)*(6786.315 / 4125.7265)
=Net Margin %*Asset Turnover*Equity Multiplier
=16.57 %*1.3976*1.6449
=ROA %*Equity Multiplier
=23.16 %*1.6449
=38.09 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Jul. 2024 )
=Net Income/Total Stockholders Equity
=1571.688/4125.7265
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (1571.688 / 2232.88) * (2232.88 / 2160.904) * (2160.904 / 9484.312) * (9484.312 / 6786.315) * (6786.315 / 4125.7265)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7039 * 1.0333 * 22.78 % * 1.3976 * 1.6449
=38.09 %

Note: The net income data used here is four times the quarterly (Jul. 2024) net income data. The Revenue data used here is four times the quarterly (Jul. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Lululemon Athletica ROE % Related Terms

Thank you for viewing the detailed overview of Lululemon Athletica's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Lululemon Athletica Business Description

Address
1818 Cornwall Avenue, Vancouver, BC, CAN, V6J 1C7
Lululemon Athletica designs, distributes, and markets athletic apparel, footwear, and accessories for women, men, and girls. Lululemon offers pants, shorts, tops, and jackets for both leisure and athletic activities such as yoga and running. The company also sells fitness accessories, such as bags, yoga mats, and equipment. Lululemon sells its products through more than 700 company-owned stores in about 20 countries, e-commerce, outlets, and wholesale accounts. The company was founded in 1998 and is based in Vancouver, Canada.
Executives
Calvin Mcdonald director, officer: Chief Executive Officer C/O LULULEMON ATHLETICA INC., 1818 CORNWALL AVENUE, VANCOUVER A1 V6J 1C7
Morfitt Martha A M director P.O. BOX 1441, MINNEAPOLIS MN 55440-1441
Meghan Frank officer: Chief Financial Officer C/O LULULEMON ATHLETICA INC., 1818 CORNWALL AVENUE, VANCOUVER A1 V6J 1C7
Nicole Neuburger officer: Chief Brand Officer C/O LULULEMON ATHLETICA INC., 1818 CORNWALL AVENUE, VANCOUVER A1 V6J 1C7
Celeste Burgoyne officer: Pres Americas&Global Guest C/O LULULEMON ATHLETICA INC., 1818 CORNWALL AVE, VANCOUVER A1 V6J 1C7
Shane Grant director C/O LULULEMON ATHLETICA INC., 1818 CORNWALL AVENUE, VANCOUVER A1 V6J 1C7
Michelle Sun Choe officer: Chief Product Officer C/O LULULEMON ATHLETICA INC., 1818 CORNWALL AVE, VANCOUVER A1 V6J 1C7
David M Mussafer director C/O ADVENT INTERNATIONAL CORP, 75 STATE ST 29TH FLOOR, BOSTON MA 02104
Isabel Mahe director ONE APPLE PARK WAY, MS169:2CL, CUPERTINO CA 95014
Kathryn Henry director C/O LULULEMON ATHLETICA, INC., 1818 CORNWALL AVENUE, VANCOUVER A1 V6J 1C7
Kourtney Gibson director C/O MARKETAXESS HOLDINGS INC., 55 HUDSON YARDS, 15TH FLOOR, NEW YORK NY 10001
Alison Loehnis director C/O LULULEMON ATHLETICA INC., 1818 CORNWALL AVENUE, VANCOUVER A1 V6J1C7
Andre Maestrini officer: EVP, International C/O LULULEMON ATHLETICA INC., 1818 CORNWALL AVENUE, VANCOUVER A1 V6J 1C7
Stephanie Ferris director C/O VANTIV, INC., 8500 GOVERNORS HILL DRIVE, CINCINNATI OH 45249
Martin Michael Casey director

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