Aureus
COkay

lululemon athletica inc.(LULU)

C

Financial data as of Jan 31, 2026Declining · Consumer Discretionary

FCF Margin8.3%Free Cash Flow / Revenue
Cash Conversion101.5%Operating CF / Net Income
Free Cash Flow$921.7M
Revenue$11.1B
Net Cash$8.8MCash exceeds debt
Debt / FCF2.0xManageable debt load
Current Ratio2.26Adequate short-term liquidity
YoY FCF Growth-17.7%4 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseC
→
-0.5FCF trend declining (-17.7% YoY)
→
-0.5Highly volatile FCF (consistency: 1.32)
→
+1Very low debt-to-FCF ratio (2.0x)
→
FinalC

Analysis Summary

Strengths

  • Excellent cash conversion (101%)
  • Net cash position ($0.0B)
  • Very low debt relative to cash flow (2.0x)
  • Strong liquidity (current ratio: 2.26)

Concerns

  • Low FCF margin (8.3%)
  • Highly volatile quarterly FCF

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin8.3%
Net Margin14.2%
Operating CF Margin14.4%
CapEx Ratio6.1%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash$8.8MCash exceeds debt
Debt / FCF2.0xManageable debt load
Current Ratio2.26Strong liquidity
Debt / Equity0.36Low leverage

Quarterly FCF Trend

-17.7% YoYDeclining (-17.7%)

Free cash flow per quarter

Sector Comparison — Consumer Discretionary

FCF Margin ranked against sector peers

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Detailed Metrics

Company Namelululemon athletica inc.
SectorConsumer Discretionary
Free Cash Flow$921.7M
Revenue$11.1B
Net Income$1.6B
Operating Cash Flow$1.6B
Capital Expenditure$680.8M
FCF Margin8.3%
Cash Conversion Rate101.5%
Net Margin14.2%
Total Debt$1.8B
Total Cash$1.8B
Net Cash$8.8M
Current Ratio2.26
Debt / Equity0.36
Debt / FCF2.0x
YoY FCF Growth-17.7%
Positive Quarters4 of 5
Trend DirectionDeclining
Report DateJan 31, 2026
GradeC
Data SourceYahoo Finance

Related Research

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Sector Report4 min read

Consumer Discretionary: Eight A-Grades, Six Failures

Travel and fast food print 30%+ FCF margins. Auto and retail burn cash. Same sector, different planets.

Mar 27, 2026
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