Financial Analysis Of Lululemon

Lululemon Athletica Inc., one of the rising designers and retailers of technical apparel, founded in 1998 by Dennis “Chip” Wilson, operates primarily in North America and Australia (Lululemon.com). After 20 years in the surf, skate and snowboard business, Chip took an opportunity attending a commercial yoga class offered in Vancouver (where eventually Lululemon was founded) and found it inspiring. A design studio was then born, where clothing was offered for sale and an underground yoga clothing movement was taking place. Lululemon focuses on apparel such as fitness pants, shorts, tops and jackets are designed and sold for athletic pursuits in yoga, running, and general fitness for active, educated, and young-thinking men and women. Products

Operational liabilities include accounts payable, taxes payable, pension obligations, etc. The debt liabilities include notes payable, other short-term borrowings, the current portion of long-term borrowings, and long-term borrowings. The debt-equity ratio is leveraging to compare a company's total liabilities with its total shareholders' equity (investopedia.com). This is a measurement of how much in the future suppliers, vendors, and creditors have committed to the company in contrast to shareholders` commitment. To a larger extent, similar to the debt ratio, a lower ratio (normally in percentage) means that a company is using less leverage of the debt and has a stronger equity

The daily volume was measured at 2.04 million shares. The company had a market cap of $10.68 billion. The stock had a P/E ratio of 40.94. The stock had Price to Sales (P/S) value of 5.01 where Price to Book (P/B) value stood at 9.37. LULU showed ROA (Return on Assets) value of 19.8% where ROE (Return on Equity) was 24.4%. Over the years, Lululemon has experienced market prices ranging from $38 to $81. LULU stock experienced a rapid increase in demand and market price as Lululemon continued to increase market share. In 2016, Lululemon is still in its growth stage as a company, and has experienced increase in net income just the past two to three years. The trends in earnings, revenues, cash flow and demand indicate that Lululemon will continue to grow. By looking at Lululemon’s year-to-year performance, the stock shows positive value of 47.86%, which means the stock is appreciating. In addition, with the product diversification of new young girl’s Lvivva lines, men’s stores and international expansion, as well as the well-performed e-commerce market, Lululemon will continue to grow and expand its product