LULUNEUTRAL

Gross Margin

54.2%

Updated 152h ago

Sector Performance

63th percentile

LULU

54.2%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

LULU’s gross margin of 54.2% means that for every dollar of sales, the company keeps $0.542 after paying for the direct costs of producing its goods.

This is above the sector median of 44.4%, placing LULU in the 63rd percentile among its peers—meaning it outpaces more than half of comparable companies on profitability from core operations. However, the trend data for this metric is not available: the year-over-year change, quarter-over-quarter change, and direction over the last eight quarters are all listed as N/A, with only the single current value provided. Without any historical comparison, it is impossible to assess whether this margin is improving, declining, or stable. The combination of a strong absolute margin and the absence of trend data suggests a neutral risk profile—the high level is a positive sign for cost control, but the lack of direction limits confidence in future performance. This does not contradict the overall NEUTRAL verdict; the metric supports it because a favorable position is balanced by insufficient information to justify an upgrade or downgrade.

Frequently Asked Questions

What does the Gross Margin tell investors about LULU?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are LULU's closest peers by Gross Margin?

The closest peers by Gross Margin include: WHR (12.7%), JBHT (12.6%), DVN (12.1%), F (11.9%), GM (11.5%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.