Lululemon - AI Stock Analysis

Analysis generated October 7, 2025

Lululemon Athletica Inc. is a renowned apparel company that specializes in athletic wear. Known for its high-quality yoga wear and athleisure products, Lululemon has carved out a niche market segment characterized by brand loyalty and premium pricing. Founded in 1998 and headquartered in Vancouver, Canada, the company has expanded its footprint globally, offering a wide range of products including tops, bottoms, shorts, and accessories through both physical retail stores and e-commerce platforms.

Fundamental Analysis

For the last quarter, Lululemon reported a revenue of $2.53 billion. This marks a 6.52% increase compared to the prior quarter, and a 6.50% increase year-over-year. These figures indicate robust and consistent growth, which is a positive sign for investors.

Net income for the last quarter was reported at $371 million, reflecting a 17.91% increase quarter-over-quarter. However, it's worth noting that on a year-over-year basis, net income decreased by 5.60%. This discrepancy could be a red flag, suggesting potential issues in profit margins or increased expenses.

Lululemon's EBITDA for the last quarter stood at $653 million, marking an 18.10% increase compared to the prior quarter and a 1.47% increase year-over-year. This growth in EBITDA suggests that the company's operational performance has been improving, although the year-over-year figure indicates that some challenges may still exist.

The company’s current Price-to-Earnings (P/E) ratio is 11.89. Generally, a lower P/E ratio can indicate that the stock is undervalued, which would be a bullish signal for potential investors.

Technical Analysis

The current stock price of Lululemon is $172.90, reflecting a 3.04% increase from a month ago, which is a positive short-term trend. However, the stock price is down by 37.49% compared to a year ago, signaling potential long-term concerns.

The Simple Moving Average over 10 days (SMA10) is currently at $176.29, slightly down from the previous SMA10 of $176.63. This indicates a potential downward trend. Additionally, the Relative Strength Index (RSI) is 72.6, which suggests that the stock is overbought and could be primed for a bearish reversal.

Alternative Data Analysis

Lululemon has maintained a stable number of job postings at 1,000, indicating a stable workforce and, potentially, steady operations. Employee sentiment remains neutral, suggesting no significant internal disruptions.

The company has an estimated 24 million visitors to its webpage each month, with no meaningful change over recent months. However, the mobile app has seen an increase in daily downloads by 8%, which is a bullish indicator for customer acquisition.

Regarding customer engagement, Lululemon has 5.3 million followers on Instagram and 920,000 followers on Twitter. The Instagram followers have remained stable, while the Twitter followers have decreased by 1%, indicating a slight drop in interest among some social media users.

According to AltIndex's AI score, which evaluates multiple facets such as fundamental, technical, and alternative data, Lululemon has a score of 54, pointing towards a "hold" signal.

Conclusion

In summary, Lululemon presents a mixed bag of metrics. The company shows robust revenue growth and improving operational performance but faces challenges with its net income on a year-over-year basis. The technical indicators suggest cautions around a potentially overbought condition and a bearish long-term trend, while alternative data indicates a steady operational and customer engagement environment.

Given the stable yet mixed nature of the data, and the AI score of 54, suggesting a hold, Lululemon’s stock would generally be considered a hold by investors. Fundamental growth and undervaluation provide bullish elements, but caution is advised due to bearish technical trends and neutral alternative signals.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.