Lulu Lemon

• Revenue: $2.2 billion, up 19% year-over-year.

• Net Income: $1.22 billion, a significant increase from $210 million YoY.

• Gross Margin: Approximately 75%, indicating strong operational efficiency.

• EPS (Earnings Per Share): $2.87, surpassing analyst expectations of $2.69.

• Free Cash Flow: $1.37 billion, reflecting robust cash generation.

💰 Valuation Analysis

• P/E Ratio: Approximately 28x, higher than the industry average, reflecting a growth premium.

• P/S Ratio: Approximately 6x, indicating that the market values its revenue growth highly.

• Forward P/E: Approximately 25x, suggesting a continued growth trajectory.

• PEG Ratio: Approximately 1.5, highlighting a good balance between growth and valuation.

• Market Cap: $44.5 billion, solidifying its status as a large-cap stock.

📈 Growth Metrics

• 2025 EPS Growth Forecast: Lululemon is projected to see continued strong growth, driven by product innovation and international expansion.

• Price Target: Analysts have set a consensus price target of $372.72, reflecting confidence in Lululemon’s sustained performance.

🔍 Revenue Breakdown

1. Company-Operated Stores (60%): $1.32 billion (+12% YoY)
• Growth driven by increased foot traffic and new store openings.

2. Direct-to-Consumer (30%): $660 million (+14% YoY)
• Steady growth in online sales, reflecting strong digital presence.

3. Other (10%): $220 million (+8% YoY)
• Includes wholesale and outlet sales.

🔮 Forecast

Final Summary

• 🚀 Strong Buy: Lululemon’s leading position in the athletic apparel market, combined with its exceptional financial performance, make it a top-tier stock.

• 📊 Strong Financials: With substantial revenue and net income growth, Lululemon’s financial health is outstanding.

• 💡 Valuation Justified: Despite high multiples, Lululemon’s growth potential in product innovation and international markets supports its valuation.

• ⚠️ Minor Risks: Watch for short-term market fluctuations due to high valuations and potential supply chain disruptions, but the long-term outlook remains highly positive.