Lululemon Athletica Inc. (LULU)

Days of inventory on hand (DOH)

		Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020
Inventory turnover		5.60	4.69	5.10	5.55	5.96
DOH	days	65.18	77.78	71.61	65.76	61.24

January 28, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.60
= 65.18

Lululemon Athletica Inc.'s days of inventory on hand (DOH) have fluctuated over the past five years. The company's DOH was 65.18 days as of January 28, 2024, which represented a decrease compared to the DOH of 77.78 days on January 29, 2023. This reduction may indicate a more efficient management of inventory levels in the current year.

Comparing the current DOH to the figures from the previous years, Lululemon Athletica Inc. has shown a trend of generally maintaining its inventory for a shorter period. This suggests that the company may have improved its inventory management processes over time, potentially leading to lower carrying costs and better responsiveness to changes in demand.

However, it is important to note that inventory management is a delicate balance, as too low DOH could risk stockouts and lost sales, while too high DOH could tie up capital unnecessarily. Therefore, ongoing monitoring and optimization of inventory levels are crucial for Lululemon Athletica Inc. to ensure efficient operations and profitability.