Lululemon Athletica Inc. (LULU)

Return on equity (ROE)

		Jan 31, 2025	Jan 31, 2024	Jan 28, 2024	Jan 31, 2023	Jan 29, 2023
Net income	US$ in thousands	1,814,620	1,550,190	1,550,190	854,800	854,800
Total stockholders’ equity	US$ in thousands	4,803,230	4,232,080	4,232,080	3,148,800	3,148,800
ROE		37.78%	36.63%	36.63%	27.15%	27.15%

January 31, 2025 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,814,620K ÷ $4,803,230K
= 37.78%

Lululemon Athletica Inc.'s return on equity (ROE) has shown a positive trend over the years. Starting from January 29, 2023, with an ROE of 27.15%, the company maintained this level through January 31, 2023. In the following fiscal year, the ROE increased significantly to 36.63% by January 28, 2024, and remained at that level through January 31, 2024. The most recent data point, January 31, 2025, indicates a further improvement to 37.78%.

This upward trend in ROE suggests that Lululemon Athletica Inc. has been effectively utilizing its equity to generate profits for its shareholders. A rising ROE is generally seen as a positive indicator of financial health and operational efficiency, indicating that the company is generating more profit per dollar of equity invested. Investors and stakeholders may view this trend favorably as it reflects the company's ability to deliver value and maximize returns on shareholder equity over time.