FMP

FMP

Lululemon Athletica Inc. (NASDAQ:LULU) Surpasses Earnings Estimates

  • Earnings Per Share (EPS) of $2.59, beating the estimated $2.21 and showcasing a 16.67% earnings surprise.
  • Revenue Growth: Reported a 7.1% increase to $2.57 billion, surpassing Zacks Consensus Estimate.
  • Financial Stability: Demonstrated by a debt-to-equity ratio of approximately 0.37 and a current ratio of about 1.51.

Lululemon Athletica Inc., listed as NASDAQ:LULU, is a prominent player in the athletic apparel industry. Known for its high-quality yoga and fitness wear, Lululemon has carved a niche in the market, competing with brands like Nike and Under Armour. The company has consistently demonstrated strong financial performance, as evidenced by its recent earnings report.

On December 11, 2025, Lululemon reported earnings per share (EPS) of $2.59, surpassing the estimated $2.21. This represents a significant earnings surprise of 16.67%, as highlighted by Zacks. Although the EPS decreased from $2.87 in the previous year, Lululemon's ability to exceed expectations underscores its financial resilience and market strength.

Lululemon's revenue for the third quarter ending October 2025 was $2.57 billion, marking a 7.1% increase from the same period last year. This figure exceeded the Zacks Consensus Estimate of $2.48 billion by 3.4%. The company's consistent ability to surpass revenue estimates in three of the last four quarters highlights its robust market position within the textile-apparel industry.

The company's financial metrics further illustrate its market valuation. Lululemon's price-to-earnings (P/E) ratio is approximately 12.74, while its price-to-sales ratio stands at about 1.92. These figures reflect the market's valuation of Lululemon's earnings and revenue. Additionally, the enterprise value to sales ratio is around 1.98, indicating how the market values the company relative to its sales.

Lululemon maintains a strong financial position with a debt-to-equity ratio of approximately 0.37, suggesting a relatively low level of debt compared to its equity. The company's current ratio of about 1.51 indicates its ability to cover short-term liabilities with short-term assets, further reinforcing its financial stability.