We think Lululemon has a solid plan to expand its product assortment and geographic reach while building its core business. While many firms are looking to compete in athleisure, we believe Lululemon will continue to achieve premium pricing due to the brand’s popularity and the styling and quality of its products. Our Narrow Morningstar Economic Moat Rating is based on a brand-based intangible asset.
Despite having many rivals, Lululemon’s productivity stands out in the sportswear space. Its sales per square foot were more than $1,400 in 2026, and its gross margins typically exceed 55%.
Competition is ubiquitous in all of Lululemon’s key apparel categories. The firm faces challenges from firms like Athleta, Vuori, and Alo Yoga, and Nike is improving its competitiveness through its Skims partnership.
|
Metric
|
LULU
|
GAP
|
UAA
|
|---|---|---|---|
Price/Earnings (Normalized) | 7.85 | 11.54 | 30.27 |
Price/Book Value | 2.27 | 2.07 | 1.40 |
Price/Sales | 1.00 | 0.56 | 0.40 |
Price/Cash Flow | 5.77 | 4.32 | 78.33 |
|
Metric
|
LULU
|
GAP
|
UAA
|
|---|---|---|---|
Quick Ratio | 1.13 | 0.77 | 0.80 |
Current Ratio | 2.19 | 1.82 | 1.81 |
Interest Coverage | — | 18.11 | −3.51 |
|
Metric
|
LULU
|
GAP
|
UAA
|
|---|---|---|---|
Return on Assets (Normalized) | 17.83% | 10.03% | 1.35% |
Return on Equity (Normalized) | 31.12% | 33.73% | 3.87% |
Return on Invested Capital (Normalized) | 22.08% | 13.24% | 2.75% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
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CBKCQ
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United States