Lululemon stock trades near recent highs as margin strength and store expansion support valuation

Lululemon stock is trading close to its recent highs, backed by double digit revenue growth, expanding margins, and an ongoing global store rollout that investors continue to monitor.

Lululemon Athletica Inc. (ISIN US5500211090) stock is trading near its recent high after the athletic apparel company reported continued double digit revenue growth and improving margins in its latest fiscal year, according to investor materials for fiscal 2025 on its investor relations website. As of early 2025, Lululemon reported that net revenue rose strongly year over year, helping underpin the valuation that investors see reflected in the current share price on Nasdaq.

Revenue up double digits

According to the companys most recent annual report for fiscal 2024 published on Lululemon Investor Relations, net revenue increased by more than ten percent compared with the prior year as the brand expanded globally and grew its direct to consumer channel. In the same filing, Lululemon highlighted that comparable sales in company operated stores also advanced, contributing to the overall revenue lift.

The annual report further indicates that international markets now account for a growing share of the companys net revenue, reflecting continued expansion in regions such as Europe and Asia. This shift has allowed Lululemon to diversify beyond its original North American core while still maintaining strong performance in its home market.

Margins and earnings expand

In fiscal 2024, Lululemon reported a gross profit margin that improved compared with the previous year, according to its latest Form 10 K and related earnings materials hosted on the investor relations portal. The margin expansion was driven by a mix of full price selling and disciplined inventory management, which helped offset cost pressures in sourcing and logistics.

The company also reported higher diluted earnings per share year over year in fiscal 2024, based on its earnings release available through Lululemon Investor Relations. Earnings growth outpaced revenue growth as operating expenses were leveraged across a larger sales base, providing support for the current valuation that market participants assign to Lululemon stock.

Lululemon Align drives brand growth

One of the representative products underpinning Lululemons performance is the Lululemon Align collection of yoga leggings. According to product and brand information on the companys investor site, the Align line has become a core offering within the womens category, supporting repeat purchases and customer loyalty.

While Lululemon does not break out detailed revenue by individual product in its public filings, the company has indicated in presentations that key franchises such as Align contribute materially to overall womens revenue, which itself accounted for a substantial share of net sales in fiscal 2024. For investors, the continued strength of these core product lines matters because it helps maintain pricing power and margin resilience.

Lululemon stock and market context

Lululemon stock is listed on Nasdaq and trades in US dollars, aligning it with other large US consumer discretionary names that investors follow closely. Market data from standard quote services show that the companys market capitalization has reached several tens of billions of dollars in recent periods, reflecting the scale of its global footprint and the valuation premium associated with strong growth and margin profiles.

For retail investors, Lululemon represents a blend of apparel brand exposure and direct to consumer retail, with the stock often compared with other athletic and lifestyle apparel peers in terms of revenue growth rates and profitability. The companys strategy of balancing store expansion with e commerce growth has allowed it to sustain double digit revenue increases while managing inventory and margin pressures.

Lululemon Athletica key stock data

• Company: Lululemon Athletica Inc.
• ISIN: US5500211090
• Ticker: NASDAQ: LULU
• Trading venue: Nasdaq
• Sector / Industry: Consumer Discretionary / Apparel Retail
• Index membership: S&P 500