Stock Analysis on Net

lululemon athletica inc. (NASDAQ:LULU)

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

lululemon athletica inc., income tax expense (benefit), continuing operations

US$ in thousands

Microsoft Excel
12 months ended: Feb 2, 2025 Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020
Federal 86,851 140,726 34,752 25,701 70 45,765
State 31,983 42,476 33,369 17,608 10,439 11,480
Foreign 584,248 469,090 400,250 322,105 185,803 170,158
Current income tax expense 703,082 652,292 468,371 365,414 196,312 227,403
Federal 61,386 (14,741) 8,932 5,858 19,754 (5,683)
State 14,047 (3,097) 2,363 1,045 5,923 (150)
Foreign (17,054) (8,909) (1,895) (13,770) 8,448 30,227
Deferred income tax expense (recovery) 58,379 (26,747) 9,400 (6,867) 34,125 24,394
Income tax expense 761,461 625,545 477,771 358,547 230,437 251,797

Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).

Item Description The company
Current income tax expense Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. lululemon athletica inc. current income tax expense increased from 2023 to 2024 and from 2024 to 2025.
Deferred income tax expense (recovery) Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. lululemon athletica inc. deferred income tax expense (recovery) decreased from 2023 to 2024 but then increased from 2024 to 2025 exceeding 2023 level.
Income tax expense Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. lululemon athletica inc. income tax expense increased from 2023 to 2024 and from 2024 to 2025.

Effective Income Tax Rate (EITR)

lululemon athletica inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Feb 2, 2025 Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020
Federal income tax at statutory rate 21.00% 21.00% 21.00% 21.00% 21.00% 21.00%
Foreign tax rate differentials 4.30% 4.10% 6.80% 5.00% 4.60% 4.60%
U.S. state taxes 0.90% 1.00% -0.40% 0.80% 0.80% 1.00%
Non-deductible compensation expense 0.50% 0.60% 0.70% 0.70% 2.10% 0.60%
Excess tax benefits from stock-based compensation -0.10% -0.40% -0.50% -0.90% -0.80% -0.40%
Tax on unremitted foreign earnings 2.60% 2.60% 1.40% 0.00% 0.00% 0.00%
Impairment of goodwill and other assets, gain on disposal of assets 0.00% 0.00% 7.80% 0.00% 0.00% 0.00%
Permanent and other 0.40% -0.10% -0.90% 0.30% 0.40% 1.30%
Effective tax rate 29.60% 28.80% 35.90% 26.90% 28.10% 28.10%

Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).

Item Description The company
Effective tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. lululemon athletica inc. effective tax rate decreased from 2023 to 2024 but then slightly increased from 2024 to 2025.

Components of Deferred Tax Assets and Liabilities

lululemon athletica inc., components of deferred tax assets and liabilities

US$ in thousands

Microsoft Excel
Feb 2, 2025 Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020
Net operating loss carryforwards 2,174 2,385 2,312 6,686 14,149 2,354
Inventories 33,801 43,157 43,471 16,326 14,093 8,763
Accrued bonuses 9,376 19,075 13,647 7,830 1,948 3,509
Unredeemed gift card liability 18,956 15,580 12,877 9,804 6,629 6,815
Non-current lease liabilities 308,796 286,528 216,495 173,700 160,015 144,412
Research and experimental expenditures 71,579 48,922
Stock-based compensation 20,883 20,057 16,093 10,739 7,266 4,961
Property and equipment, net 2,715 5,444
Other 22,415 16,802 9,645 12,992 14,406 7,586
Deferred income tax assets 487,980 452,506 314,540 238,077 221,221 183,844
Valuation allowance (7,902) (2,334) (743) (2,804) (6,464) (5,655)
Deferred income tax assets, net of valuation allowance 480,078 450,172 313,797 235,273 214,757 178,189
Property and equipment, net (180,664) (162,312) (142,516) (104,498) (97,717) (57,280)
Intangible assets, net (5,224) (17,669) (21,556) (611)
Right-of-use lease assets (269,089) (265,157) (192,221) (154,634) (134,245) (132,059)
Unremitted foreign earnings (106,986) (41,198)
Other (4,442) (1,851) (22,518) (5,733) (13,263) (236)
Deferred income tax liabilities (561,181) (470,518) (362,479) (282,534) (266,781) (190,186)
Net deferred income tax assets (liabilities) (81,103) (20,346) (48,682) (47,261) (52,024) (11,997)

Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).

Item Description The company
Deferred income tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. lululemon athletica inc. deferred income tax assets increased from 2023 to 2024 and from 2024 to 2025.
Deferred income tax assets, net of valuation allowance Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. lululemon athletica inc. deferred income tax assets, net of valuation allowance increased from 2023 to 2024 and from 2024 to 2025.
Net deferred income tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. lululemon athletica inc. net deferred income tax assets (liabilities) increased from 2023 to 2024 but then decreased significantly from 2024 to 2025.

Deferred Tax Assets and Liabilities, Classification

lululemon athletica inc., deferred tax assets and liabilities, classification

US$ in thousands

Microsoft Excel
Feb 2, 2025 Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020
Deferred income tax assets 17,085 9,176 6,402 6,091 6,731 31,435
Deferred income tax liabilities 98,188 29,522 55,084 53,352 58,755 43,432

Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).

Item Description The company
Deferred income tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. lululemon athletica inc. deferred income tax assets increased from 2023 to 2024 and from 2024 to 2025.
Deferred income tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. lululemon athletica inc. deferred income tax liabilities decreased from 2023 to 2024 but then increased from 2024 to 2025 exceeding 2023 level.

Adjustments to Financial Statements: Removal of Deferred Taxes

lululemon athletica inc., adjustments to financial statements

US$ in thousands

Microsoft Excel
Feb 2, 2025 Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020
Adjustment to Total Assets
Total assets (as reported) 7,603,292 7,091,941 5,607,038 4,942,478 4,185,215 3,281,354
Less: Noncurrent deferred tax assets, net 17,085 9,176 6,402 6,091 6,731 31,435
Total assets (adjusted) 7,586,207 7,082,765 5,600,636 4,936,387 4,178,484 3,249,919
Adjustment to Total Liabilities
Total liabilities (as reported) 3,279,245 2,859,860 2,458,239 2,202,432 1,626,649 1,329,136
Less: Noncurrent deferred tax liabilities, net 98,188 29,522 55,084 53,352 58,755 43,432
Total liabilities (adjusted) 3,181,057 2,830,338 2,403,155 2,149,080 1,567,894 1,285,704
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 4,324,047 4,232,081 3,148,799 2,740,046 2,558,566 1,952,218
Less: Net deferred tax assets (liabilities) (81,103) (20,346) (48,682) (47,261) (52,024) (11,997)
Stockholders’ equity (adjusted) 4,405,150 4,252,427 3,197,481 2,787,307 2,610,590 1,964,215
Adjustment to Net Income
Net income (as reported) 1,814,616 1,550,190 854,800 975,322 588,913 645,596
Add: Deferred income tax expense (benefit) 58,379 (26,747) 9,400 (6,867) 34,125 24,394
Net income (adjusted) 1,872,995 1,523,443 864,200 968,455 623,038 669,990

Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).


lululemon athletica inc., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

lululemon athletica inc., adjusted financial ratios

Microsoft Excel
Feb 2, 2025 Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020
Net Profit Margin
Reported net profit margin 17.14% 16.12% 10.54% 15.59% 13.38% 16.22%
Adjusted net profit margin 17.69% 15.84% 10.66% 15.48% 14.15% 16.84%
Total Asset Turnover
Reported total asset turnover 1.39 1.36 1.45 1.27 1.05 1.21
Adjusted total asset turnover 1.40 1.36 1.45 1.27 1.05 1.22
Financial Leverage
Reported financial leverage 1.76 1.68 1.78 1.80 1.64 1.68
Adjusted financial leverage 1.72 1.67 1.75 1.77 1.60 1.65
Return on Equity (ROE)
Reported ROE 41.97% 36.63% 27.15% 35.60% 23.02% 33.07%
Adjusted ROE 42.52% 35.83% 27.03% 34.75% 23.87% 34.11%
Return on Assets (ROA)
Reported ROA 23.87% 21.86% 15.25% 19.73% 14.07% 19.67%
Adjusted ROA 24.69% 21.51% 15.43% 19.62% 14.91% 20.62%

Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. lululemon athletica inc. adjusted net profit margin ratio improved from 2023 to 2024 and from 2024 to 2025.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. lululemon athletica inc. adjusted total asset turnover ratio deteriorated from 2023 to 2024 but then slightly improved from 2024 to 2025.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
lululemon athletica inc. adjusted financial leverage ratio decreased from 2023 to 2024 but then increased from 2024 to 2025 not reaching 2023 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. lululemon athletica inc. adjusted ROE improved from 2023 to 2024 and from 2024 to 2025.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. lululemon athletica inc. adjusted ROA improved from 2023 to 2024 and from 2024 to 2025.

lululemon athletica inc., Financial Ratios: Reported vs. Adjusted


Adjusted Net Profit Margin

Microsoft Excel
Feb 2, 2025 Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020
As Reported
Selected Financial Data (US$ in thousands)
Net income 1,814,616 1,550,190 854,800 975,322 588,913 645,596
Net revenue 10,588,126 9,619,278 8,110,518 6,256,617 4,401,879 3,979,296
Profitability Ratio
Net profit margin1 17.14% 16.12% 10.54% 15.59% 13.38% 16.22%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income 1,872,995 1,523,443 864,200 968,455 623,038 669,990
Net revenue 10,588,126 9,619,278 8,110,518 6,256,617 4,401,879 3,979,296
Profitability Ratio
Adjusted net profit margin2 17.69% 15.84% 10.66% 15.48% 14.15% 16.84%

Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).

2025 Calculations

1 Net profit margin = 100 × Net income ÷ Net revenue
= 100 × 1,814,616 ÷ 10,588,126 = 17.14%

2 Adjusted net profit margin = 100 × Adjusted net income ÷ Net revenue
= 100 × 1,872,995 ÷ 10,588,126 = 17.69%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. lululemon athletica inc. adjusted net profit margin ratio improved from 2023 to 2024 and from 2024 to 2025.

Adjusted Total Asset Turnover

Microsoft Excel
Feb 2, 2025 Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020
As Reported
Selected Financial Data (US$ in thousands)
Net revenue 10,588,126 9,619,278 8,110,518 6,256,617 4,401,879 3,979,296
Total assets 7,603,292 7,091,941 5,607,038 4,942,478 4,185,215 3,281,354
Activity Ratio
Total asset turnover1 1.39 1.36 1.45 1.27 1.05 1.21
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Net revenue 10,588,126 9,619,278 8,110,518 6,256,617 4,401,879 3,979,296
Adjusted total assets 7,586,207 7,082,765 5,600,636 4,936,387 4,178,484 3,249,919
Activity Ratio
Adjusted total asset turnover2 1.40 1.36 1.45 1.27 1.05 1.22

Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).

2025 Calculations

1 Total asset turnover = Net revenue ÷ Total assets
= 10,588,126 ÷ 7,603,292 = 1.39

2 Adjusted total asset turnover = Net revenue ÷ Adjusted total assets
= 10,588,126 ÷ 7,586,207 = 1.40

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. lululemon athletica inc. adjusted total asset turnover ratio deteriorated from 2023 to 2024 but then slightly improved from 2024 to 2025.

Adjusted Financial Leverage

Microsoft Excel
Feb 2, 2025 Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020
As Reported
Selected Financial Data (US$ in thousands)
Total assets 7,603,292 7,091,941 5,607,038 4,942,478 4,185,215 3,281,354
Stockholders’ equity 4,324,047 4,232,081 3,148,799 2,740,046 2,558,566 1,952,218
Solvency Ratio
Financial leverage1 1.76 1.68 1.78 1.80 1.64 1.68
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted total assets 7,586,207 7,082,765 5,600,636 4,936,387 4,178,484 3,249,919
Adjusted stockholders’ equity 4,405,150 4,252,427 3,197,481 2,787,307 2,610,590 1,964,215
Solvency Ratio
Adjusted financial leverage2 1.72 1.67 1.75 1.77 1.60 1.65

Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).

2025 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity
= 7,603,292 ÷ 4,324,047 = 1.76

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 7,586,207 ÷ 4,405,150 = 1.72

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
lululemon athletica inc. adjusted financial leverage ratio decreased from 2023 to 2024 but then increased from 2024 to 2025 not reaching 2023 level.

Adjusted Return on Equity (ROE)

Microsoft Excel
Feb 2, 2025 Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020
As Reported
Selected Financial Data (US$ in thousands)
Net income 1,814,616 1,550,190 854,800 975,322 588,913 645,596
Stockholders’ equity 4,324,047 4,232,081 3,148,799 2,740,046 2,558,566 1,952,218
Profitability Ratio
ROE1 41.97% 36.63% 27.15% 35.60% 23.02% 33.07%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income 1,872,995 1,523,443 864,200 968,455 623,038 669,990
Adjusted stockholders’ equity 4,405,150 4,252,427 3,197,481 2,787,307 2,610,590 1,964,215
Profitability Ratio
Adjusted ROE2 42.52% 35.83% 27.03% 34.75% 23.87% 34.11%

Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).

2025 Calculations

1 ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 1,814,616 ÷ 4,324,047 = 41.97%

2 Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 1,872,995 ÷ 4,405,150 = 42.52%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. lululemon athletica inc. adjusted ROE improved from 2023 to 2024 and from 2024 to 2025.

Adjusted Return on Assets (ROA)

Microsoft Excel
Feb 2, 2025 Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020
As Reported
Selected Financial Data (US$ in thousands)
Net income 1,814,616 1,550,190 854,800 975,322 588,913 645,596
Total assets 7,603,292 7,091,941 5,607,038 4,942,478 4,185,215 3,281,354
Profitability Ratio
ROA1 23.87% 21.86% 15.25% 19.73% 14.07% 19.67%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income 1,872,995 1,523,443 864,200 968,455 623,038 669,990
Adjusted total assets 7,586,207 7,082,765 5,600,636 4,936,387 4,178,484 3,249,919
Profitability Ratio
Adjusted ROA2 24.69% 21.51% 15.43% 19.62% 14.91% 20.62%

Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).

2025 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 1,814,616 ÷ 7,603,292 = 23.87%

2 Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 1,872,995 ÷ 7,586,207 = 24.69%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. lululemon athletica inc. adjusted ROA improved from 2023 to 2024 and from 2024 to 2025.