Lululemon Athletica Inc. (LULU)

Days of inventory on hand (DOH)

		Jan 31, 2025	Jan 31, 2024	Jan 28, 2024	Jan 31, 2023	Jan 29, 2023
Inventory turnover		2.99	3.03	5.60	2.50	4.69
DOH	days	121.92	120.48	65.18	146.01	77.78

January 31, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.99
= 121.92

The days of inventory on hand (DOH) for Lululemon Athletica Inc. show variations over the years based on the data provided:

1. As of January 29, 2023, the company had approximately 77.78 days of inventory on hand, indicating that on average, it takes around 78 days for the company to sell its inventory.

2. By January 31, 2023, the DOH increased significantly to 146.01 days, suggesting a slowdown in inventory turnover and potentially signaling surplus inventory relative to sales demand.

3. The DOH improved by January 28, 2024, reducing to 65.18 days, indicating a more efficient management of inventory levels and a quicker turnover rate.

4. However, by January 31, 2024, the DOH rose again to 120.48 days, showing a reversal in the inventory management efficiency and a potential buildup of excess inventory.

5. By January 31, 2025, the DOH remained elevated at 121.92 days, indicating that the company continues to face challenges in optimizing its inventory management processes and may need to address issues related to inventory turnover.

Overall, the fluctuation in Lululemon's days of inventory on hand over the years suggests the need for continuous monitoring and improvement in inventory management practices to ensure optimal inventory turnover and avoid excess inventory levels that could impact the company's financial performance.