LULUNEUTRAL

LULU Return on Equity (ROE) Analysis

32.0%

Updated 81h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how efficiently a company generates profit from its shareholders’ equity; LULU’s 32.0% means it earns $0.32 for every dollar of equity.

Sector Performance

84th percentile

LULU

32.0%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

31.8%(Apr 2026)

→ Stable

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from its shareholders’ equity; LULU’s 32.0% means it earns $0.32 for every dollar of equity.

This is well above the sector median of 13.8%, placing the company in the 83rd percentile among its peers. Trend data is not available: the year-over-year change and quarter-over-quarter change are both listed as N/A, and only one historical value of 32.0% was provided. Without a trend, the high current ROE suggests strong operational efficiency, but the lack of directional insight makes it difficult to judge whether this level is sustainable or improving. The combination of a top-quartile ROE with no trend data points to limited risk from current profitability but also offers no clear opportunity from accelerating performance. This metric supports the overall NEUTRAL verdict because the high level confirms solid fundamentals, while the absence of any trend prevents a more bullish or bearish tilt.

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: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

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.