Lululemon AthleticaXTER:33L -1.41%84 Gross Margin % is 54.17% as of Apr. 2026, which is 3% below its 10-year median of 55.93. GuruFocus rates XTER:33L with a GF Score™ of 84/100 and a GF Value™ of €312.08 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 1,113 Retail - Cyclical companies, Lululemon Athletica ranks better than 80.95% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Lululemon Athletica had a gross margin of 54.17% for the quarter that ended in Apr. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Lululemon Athletica Gross Margin % Related Terms
Lululemon Athletica Gross Margin % Historical Data
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The historical data trend for Lululemon Athletica's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XTER:33L vs GAP, VSXY, BURL: Gross Margin % Comparison
For the Apparel Retail subindustry, Lululemon Athletica's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Lululemon Athletica Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Lululemon Athletica's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Lululemon Athletica's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Lululemon Athletica (XTER:33L) has a Gross Margin % of 54.17% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Lululemon Athletica and its competitors. This is near median its historical median of 55.93. Over the past decade, Lululemon Athletica's Gross Margin % has ranged from 51.17 to 59.22. According to the industry distribution chart, Lululemon Athletica ranks #212 out of 1113 companies in the Retail - Cyclical industry, placing it in the top 19%.
Is Lululemon Athletica's Gross Margin % too high?
Lululemon Athletica's current Gross Margin % of 54.17% is near median its 10-year median of 55.93. Over the past 10 years, this metric has ranged from a low of 51.17 to a high of 59.22. The Retail - Cyclical industry median Gross Margin % is 36.26. Lululemon Athletica's value of 54.17% is 49.4% above this industry median. Based on the distribution chart, Lululemon Athletica ranks #212 out of 1113 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Lululemon Athletica has a GF Score™ of 84/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lululemon Athletica's Gross Margin % compare to GAP and VSXY?
According to the Retail - Cyclical industry distribution chart, Lululemon Athletica ranks #212 out of 1113 companies for Gross Margin %. This places Lululemon Athletica in the top 19% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 36.26. Lululemon Athletica's value of 54.17% is 49.4% above this benchmark. Historically, Lululemon Athletica's own Gross Margin % has ranged from 51.17 to 59.22 over the past decade. While the company's 10-year median is 55.93 vs. the industry median of 36.26, Lululemon Athletica has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.26, based on 1,113 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lululemon Athletica's current Gross Margin % of 54.17% is 49.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Lululemon Athletica and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lululemon Athletica's current Gross Margin % is 54.17%, which is near median its own 10-year median of 55.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lululemon Athletica stock overvalued right now?
Based on GuruFocus' analysis, Lululemon Athletica (XTER:33L) is currently considered Significantly Undervalued. The stock's GF Value™ is €312.08, compared to a current price of €98.00 — trading 68.6% below its estimated fair value. The current Gross Margin % is 54.17%, which is near median its 10-year median of 55.93 and 49.4% above the Retail - Cyclical industry median of 36.26. Lululemon Athletica's overall GF Score™ is 84/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Lululemon Athletica (XTER:33L), the current Gross Margin % is 54.17% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lululemon Athletica (XTER:33L) Overvalued in 2026?
Based on GuruFocus' analysis, Lululemon Athletica stock appears to be undervalued.
The current stock price of €98.00 is trading 68.6% below its estimated GF Value™ of €312.08.
GuruFocus considers Lululemon Athletica to be Significantly Undervalued.
Key valuation signals for XTER:33L:
Gross Margin %: 54.17% (near median its 10-year median of 55.93)
GF Value™: €312.08 vs. price of €98.00 (68.6% below fair value)
Industry Position: 49.4% above the Retail - Cyclical median (#212 of 1113)
No single metric tells the full story. See the XTER:33L stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lululemon Athletica designs, distributes, and markets athletic apparel, footwear, and accessories for women, men, and girls. The company offers pants, shorts, tops, and jackets for both leisure and athletic activities such as yoga and running. Lululemon also sells fitness accessories, such as bags, yoga mats, and equipment. It sells its products through digital channels, a small number of wholesale partners, more than 800 company-owned stores in about two dozen countries in North America, Asia, and Western Europe, and about 45 franchised locations in the Middle East and Europe. The company was founded in 1998 and is based in Vancouver, Canada.
84GF Score
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