Lululemon Athletica Inc. (LULU)

Pretax margin

		Jan 28, 2024	Oct 29, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Nov 1, 2020	Aug 2, 2020	May 3, 2020	Feb 2, 2020	Nov 3, 2019	Aug 4, 2019	May 5, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	2,175,735	1,562,150	1,566,951	1,481,685	1,332,571	1,605,168	1,510,372	1,400,146	1,333,869	1,200,157	1,146,535	979,473	819,350	780,946	754,360	800,127	897,393	813,058	773,251	739,218
Revenue (ttm)	US$ in thousands	9,616,970	9,206,170	8,858,840	8,518,010	8,140,340	7,493,410	7,086,940	6,669,230	6,250,340	5,821,210	5,488,220	4,940,542	4,393,223	4,074,043	3,872,751	3,853,161	3,977,845	3,749,265	3,580,782	3,420,930
Pretax margin		22.62%	16.97%	17.69%	17.39%	16.37%	21.42%	21.31%	20.99%	21.34%	20.62%	20.89%	19.83%	18.65%	19.17%	19.48%	20.77%	22.56%	21.69%	21.59%	21.61%

January 28, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $2,175,735K ÷ $9,616,970K
= 22.62%

The pre-tax margin of Lululemon Athletica Inc. has shown some variability over the past few quarters. The pretax margin measures the company's profitability before taxes are deducted.

From the data provided, we can observe that the pretax margin ranged from a low of 16.37% in January 29, 2023 to a high of 22.62% in January 28, 2024. Generally, a higher pretax margin is indicative of better profitability as it shows the percentage of each dollar of revenue that is kept as profit before taxes are paid.

Overall, Lululemon Athletica Inc. has maintained relatively healthy pretax margins, with the latest reported figure being 22.62% as of January 28, 2024. This indicates that the company has been able to effectively manage its costs and generate profits. However, the company should continue to monitor and strive to improve its pretax margin to ensure sustainable profitability in the long term.