Lululemon Athletica Inc. (LULU)

Inventory turnover

		Jan 31, 2025	Jan 31, 2024	Jan 28, 2024	Jan 31, 2023	Jan 29, 2023
Cost of revenue	US$ in thousands	4,317,320	4,009,870	7,412,100	3,618,180	6,792,340
Inventory	US$ in thousands	1,442,080	1,323,600	1,323,600	1,447,370	1,447,370
Inventory turnover		2.99	3.03	5.60	2.50	4.69

January 31, 2025 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $4,317,320K ÷ $1,442,080K
= 2.99

The inventory turnover of Lululemon Athletica Inc. has shown fluctuations over the years based on the provided data.

In January 29, 2023, the inventory turnover was at 4.69, indicating that the company's inventory was sold and replaced approximately 4.69 times during that period. This suggests that the company effectively managed its inventory levels, ensuring that products were moving efficiently.

However, by January 31, 2023, the inventory turnover decreased to 2.50. This decline may indicate that the company's sales were slower compared to its inventory availability, which could lead to potential issues such as overstocking or obsolete inventory.

The inventory turnover improved significantly by January 28, 2024, reaching 5.60. This increase suggests that Lululemon Athletica Inc. was able to sell through its inventory at a faster rate, potentially indicating strong demand for its products and effective inventory management.

Subsequently, by January 31, 2024, the inventory turnover dropped to 3.03. This decrease could be a signal that sales did not keep pace with inventory levels, potentially leading to excess inventory that may need to be addressed to avoid potential obsolescence or markdowns.

Lastly, as of January 31, 2025, the inventory turnover stood at 2.99. This figure indicates a relatively stable turnover rate compared to the previous year, although it remains below the peak turnover achieved in January 28, 2024.

In summary, Lululemon Athletica Inc.'s inventory turnover has shown variability over the years, reflecting fluctuations in sales relative to inventory levels. Monitoring this ratio is crucial for assessing the company's inventory management efficiency and sales performance.