In-Depth Analysis: Lululemon Athletica Versus Competitors In Textiles, Apparel & Luxury Goods Industry


In today's fast-paced and highly competitive business world, it is crucial for investors and industry followers to conduct comprehensive company evaluations. In this article, we will delve into an extensive industry comparison, evaluating Lululemon Athletica LULU in relation to its major competitors in the Textiles, Apparel & Luxury Goods industry. By closely examining key financial metrics, market standing, and growth prospects, our objective is to provide valuable insights and highlight company's performance in the industry.

Lululemon Athletica Background

Lululemon Athletica designs, distributes, and markets athletic apparel, footwear, and accessories for women, men, and girls. Lululemon offers pants, shorts, tops, and jackets for both leisure and athletic activities such as yoga and running. The company also sells fitness accessories, such as bags, yoga mats, and equipment. Lululemon sells its products through more than 700 company-owned stores in about 20 countries, e-commerce, outlets, and wholesale accounts. The company was founded in 1998 and is based in Vancouver, Canada.

Company P/E P/B P/S ROE EBITDA (in billions) Gross Profit (in billions) Revenue Growth
Lululemon Athletica Inc 24.56 8.92 3.96 17.26% $1.02 $1.9 15.63%
Ralph Lauren Corp 18.62 4.08 1.67 11.2% $0.4 $1.29 5.55%
Tapestry Inc 11 3.43 1.45 5.13% $0.24 $1.11 -1.8%
Levi Strauss & Co 72.47 4.38 1.44 -0.53% $0.04 $0.91 -7.77%
PVH Corp 10.34 1.23 0.74 5.34% $0.44 $1.5 0.05%
Columbia Sportswear Co 20.81 2.62 1.50 2.2% $0.06 $0.39 -6.17%
Capri Holdings Ltd 18.19 2.11 0.79 5.46% $0.17 $0.93 -5.62%
Kontoor Brands Inc 18.10 10.31 1.58 15.68% $0.09 $0.29 -5.38%
Under Armour Inc 12.98 1.36 0.53 0.3% $0.03 $0.6 -10.36%
Carter's Inc 10.55 2.90 0.83 4.43% $0.07 $0.32 -4.94%
Oxford Industries Inc 27.63 2.94 1.07 -10.11% $-0.06 $0.25 5.74%
G-III Apparel Group Ltd 7.44 0.81 0.42 1.89% $0.05 $0.28 -10.49%
FIGS Inc 45.17 2.37 1.81 0.37% $0.0 $0.08 -0.78%
Movado Group Inc 12.95 1.15 0.90 2.39% $0.02 $0.1 -7.54%
Superior Group Of Companies Inc 26.88 1.61 0.57 1.96% $0.01 $0.06 6.17%
Vera Bradley Inc 30.92 0.91 0.51 -0.71% $0.01 $0.07 -9.4%
Lakeland Industries Inc 26.39 1.14 1.15 -0.79% $0.0 $0.01 7.73%
Average 23.15 2.71 1.06 2.76% $0.1 $0.51 -2.81%

Through a thorough examination of Lululemon Athletica, we can discern the following trends:

  • At 24.56, the stock's Price to Earnings ratio significantly exceeds the industry average by 1.06x, suggesting a premium valuation relative to industry peers.

  • The elevated Price to Book ratio of 8.92 relative to the industry average by 3.29x suggests company might be overvalued based on its book value.

  • With a relatively high Price to Sales ratio of 3.96, which is 3.74x the industry average, the stock might be considered overvalued based on sales performance.

  • The Return on Equity (ROE) of 17.26% is 14.5% above the industry average, highlighting efficient use of equity to generate profits.

  • The company exhibits higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $1.02 Billion, which is 10.2x above the industry average, implying stronger profitability and robust cash flow generation.

  • The gross profit of $1.9 Billion is 3.73x above that of its industry, highlighting stronger profitability and higher earnings from its core operations.

  • The company's revenue growth of 15.63% is notably higher compared to the industry average of -2.81%, showcasing exceptional sales performance and strong demand for its products or services.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio measures the financial leverage of a company by evaluating its debt relative to its equity.

Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.

When evaluating Lululemon Athletica alongside its top 4 peers in terms of the Debt-to-Equity ratio, the following insights arise:

  • When considering the debt-to-equity ratio, Lululemon Athletica exhibits a stronger financial position compared to its top 4 peers.

  • This indicates that the company has a favorable balance between debt and equity, with a lower debt-to-equity ratio of 0.33, which can be perceived as a positive aspect by investors.

Key Takeaways

For Lululemon Athletica, the PE, PB, and PS ratios are all high compared to its industry peers, indicating a potentially overvalued stock. On the other hand, the high ROE, EBITDA, gross profit, and revenue growth suggest strong financial performance and growth prospects relative to its competitors in the Textiles, Apparel & Luxury Goods industry.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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