LULU Gross Margin Analysis

Gross margin measures the percentage of revenue a company keeps after covering the direct costs of making its products; LULU’s current 54.2% means it retains over 54 cents on every dollar of sales.

This sits well above the sector median of 44.6%, placing LULU in the 63rd percentile among its peers — indicating a healthier-than-average pricing power or cost structure. The year-over-year change, quarter-over-quarter change, and the trend over the last eight quarters are all listed as N/A, so there is no directional movement available to assess. Without any trend data, the combination of a high absolute gross margin and no visible trajectory suggests a stable competitive advantage but also leaves uncertainty about whether the margin is improving or weakening. This strong level alone would typically support a positive view, but it does not contradict the NEUTRAL verdict because other factors — not shown here — likely keep the overall rating balanced. The metric is one point in favor, but the absence of trend information means it cannot override a neutral stance on its own.

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