Consider This Before Taking a Position in lululemon athletica inc. (LULU)

With gains of 2.4%, lululemon athletica inc. was one of the winners on Wall Street today. Its shares are now trading at $438.01 and have logged a 0.0% daily outperformance of the S&P 500. Don't join the feeding frenzy before checking some basic facts about this stock:

  • lululemon athletica inc. has moved 15.0% over the last year, and the S&P 500 logged a change of 13.0%

  • LULU has an average analyst rating of buy and is 0.13% away from its mean target price of $437.45 per share

  • Its trailing earnings per share (EPS) is $7.91

  • lululemon athletica inc. has a trailing 12 month Price to Earnings (P/E) ratio of 55.4 while the S&P 500 average is 15.97

  • Its forward earnings per share (EPS) is $13.93 and its forward P/E ratio is 31.4

  • The company has a Price to Book (P/B) ratio of 15.71 in contrast to the S&P 500's average ratio of 2.95

  • lululemon athletica inc. is part of the Consumer Discretionary sector, which has an average P/E ratio of 22.33 and an average P/B of 3.12

  • LULU has reported YOY quarterly earnings growth of 18.6% and gross profit margins of 0.6%

  • The company has a free cash flow of $809.51 Million, which refers to the total sum of all its inflows and outflows of cash over the last quarter

  • Lululemon Athletica Inc., together with its subsidiaries, designs, distributes, and retails athletic apparel, footwear, and accessories under the lululemon brand for women and men. It operates in two segments, Company-Operated Stores and Direct to Consumer. The company offers pants, shorts, tops, and jackets for healthy lifestyle, such as yoga, running, training, and other activities. It also provides fitness- inspired accessories and footwear. The company sells its products through a chain of company-operated stores; outlets; interactive workout platform; yoga and fitness studios, university campus retailers, and other partners; license and supply arrangements; recommerce; and temporary locations, as well as through mobile apps and e-commerce website. It has operations in the United States, the People's Republic of China, Canada, Australia, the United Kingdom, South Korea, Germany, New Zealand, Singapore, Japan, France, Ireland, Spain, Malaysia, Sweden, the Netherlands, Norway, and Switzerland. The company was founded in 1998 and is based in Vancouver, Canada.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.