Lululemon Athletica Inc
NASDAQ:LULU

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Lululemon Athletica Inc
NASDAQ:LULU
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Price: 263.7 USD 3.15% Market Closed
Market Cap: 33.3B USD

Operating Margin
Lululemon Athletica Inc

23.7%
Current
22%
Average
3.6%
Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
23.7%
=
Operating Profit
2.5B
/
Revenue
10.6B

Operating Margin Across Competitors

Lululemon Athletica Inc
Glance View

Economic Moat
Narrow
Market Cap
33.3B USD
Industry
Textiles, Apparel & Luxury Goods

Lululemon Athletica Inc., founded in 1998 in Vancouver, Canada, started as a design studio by day and a yoga studio by night, aiming to cater to the burgeoning market of yoga enthusiasts. What began as a quest to create thoughtfully designed, high-performance apparel has evolved into a global athletic wear powerhouse. The company made a significant leap by combining fashion-forward designs with functionality, addressing the needs of both serious athletes and everyday consumers seeking comfort and style. This dual focus allowed them to establish a strong connection with their audience, extending beyond yoga to incorporate various aspects of fitness and lifestyle activities. Lululemon's financial success hinges on its direct-to-consumer model, pairing its retail and e-commerce channels to ensure accessibility and brand consistency. By owning its distribution, the company maintains control over the customer experience, fostering a strong community through in-store events and online engagement. Its premium pricing strategy, complemented by limited releases and product exclusivity, cultivates a sense of urgency and demand among consumers. Diverging from traditional wholesale models, Lululemon's approach steers clear of mass-market dilution, allowing them to preserve brand integrity and drive impressive profit margins. As the company continues to innovate in materials and expand into new product lines like menswear and self-care items, it remains a formidable competitor in the athleisure market, meeting the growing demand for versatile, high-quality apparel.

LULU Intrinsic Value
361.79 USD
Undervaluation 27%
Intrinsic Value
Price
What is Operating Margin?

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
23.7%
=
Operating Profit
2.5B
/
Revenue
10.6B
What is the Operating Margin of Lululemon Athletica Inc?

Based on Lululemon Athletica Inc's most recent financial statements, the company has Operating Margin of 23.7%.

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