LULUNEUTRAL

Return on Equity (ROE)

32.0%

Updated 152h ago

Sector Performance

83th percentile

LULU

32.0%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders' equity—a 32.0% ROE means LULU earns $0.32 for every $1 of equity.

This sits well above the sector median of 13.7%, placing LULU in the 83rd percentile among its peers. Trend data is not available: the year-over-year and quarter-over-quarter changes are both listed as N/A, and there are no historical values beyond the current 32.0%. The combination of a high ROE with no trend information creates an opportunity (strong profitability) but also uncertainty—investors cannot judge whether this level is improving or deteriorating. While the strong ROE supports a positive view, it does not override the overall NEUTRAL verdict, as other factors likely balance the assessment.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about LULU?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are LULU's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.