Lululemon Athletica Inc. (LULU)
Profitability ratios
Return on sales
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 58.51% | 55.13% | 57.82% | 56.03% | 55.85% |
| Operating profit margin | 22.25% | 16.30% | 21.36% | 18.65% | 22.33% |
| Pretax margin | 22.70% | 16.35% | 21.37% | 18.63% | 22.54% |
| Net profit margin | 16.17% | 10.49% | 15.63% | 13.39% | 16.22% |
Over the past five years, Lululemon Athletica Inc. has demonstrated consistently strong profitability ratios. The gross profit margin has shown a positive trend, increasing from 55.85% in 2020 to 58.51% in 2024. This indicates the company's ability to efficiently manage its cost of goods sold.
Similarly, the operating profit margin has shown improvement, increasing from 22.33% in 2020 to 22.25% in 2024. This reflects the company's effectiveness in controlling its operating expenses while generating revenue.
The pretax margin has also shown a positive trajectory, rising from 18.63% in 2021 to 22.70% in 2024, indicating that Lululemon has been able to enhance its profitability before accounting for taxes.
Lastly, the net profit margin, which represents the bottom line profitability after all expenses including taxes, has shown consistent growth over the years. It increased from 13.39% in 2021 to 16.17% in 2024, highlighting the company's ability to generate higher net income relative to its revenue.
Overall, Lululemon Athletica Inc. has demonstrated sound profitability performance over the years, reflecting efficient cost management and strong revenue generation capabilities.
Return on investment
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 30.07% | 23.69% | 26.98% | 19.59% | 27.10% |
| Return on assets (ROA) | 21.86% | 15.25% | 19.73% | 14.07% | 19.67% |
| Return on total capital | 50.39% | 42.19% | 48.66% | 32.05% | 45.54% |
| Return on equity (ROE) | 36.63% | 27.15% | 35.60% | 23.02% | 33.07% |
Lululemon Athletica Inc. has demonstrated strong and consistent profitability over the past five years, as evidenced by its profitability ratios. The Operating return on assets (Operating ROA) has shown an increasing trend, indicating the company's ability to generate operating income relative to its total assets. In particular, the Operating ROA has improved from 19.59% in 2021 to 30.07% in 2024, showcasing the company's operational efficiency.
The Return on assets (ROA) has also displayed a positive trajectory, increasing from 14.07% in 2021 to 21.86% in 2024. This ratio indicates Lululemon's ability to generate profit from its total assets, reflecting effective asset utilization.
Furthermore, the Return on total capital and Return on equity (ROE) ratios highlight the company's strong profitability. The Return on total capital has consistently improved over the years, reaching 50.39% in 2024, demonstrating Lululemon's ability to generate returns for both debt and equity holders. Similarly, the ROE has shown an upward trend, indicating the company's efficiency in generating profits for its shareholders, with a notable increase from 23.02% in 2021 to 36.63% in 2024.
Overall, Lululemon Athletica Inc. has exhibited impressive profitability ratios, underscoring its effective management of assets and capital to drive profitability and create value for its stakeholders.