Lululemon Athletica Inc. (LULU)

Pretax margin

Jan 31, 2025 Jan 31, 2024 Jan 28, 2024 Jan 31, 2023 Jan 29, 2023
Earnings before tax but after interest (EBT) US$ in thousands 2,576,080 2,175,740 2,175,740 1,332,570 1,332,570
Revenue US$ in thousands 10,588,100 9,619,280 9,586,750 8,110,520 8,149,170
Pretax margin 24.33% 22.62% 22.70% 16.43% 16.35%

January 31, 2025 calculation

Pretax margin = EBT ÷ Revenue
= $2,576,080K ÷ $10,588,100K
= 24.33%

Lululemon Athletica Inc.'s pretax margin has shown a steady improvement over the years, reflecting the company's ability to efficiently generate profits before taxes relative to its total revenue. The pretax margin increased from 16.35% on January 29, 2023, to 24.33% on January 31, 2025. This upward trend indicates effective cost management and revenue growth strategies, resulting in an enhanced bottom line performance. The company's ability to maintain and improve its pretax margin over time demonstrates operational efficiency and financial health, positioning Lululemon Athletica Inc. as a strong player in the retail industry.