Lululemon AthleticaLTS:0JVT +2.60%78 Operating Margin % is 11.21% as of Apr. 2026, which is 48% below its 10-year median of 21.37. GuruFocus rates LTS:0JVT with a GF Score™ of 78/100 and a GF Value™ of $360.09 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 1,128 Retail - Cyclical companies, Lululemon Athletica ranks better than 92.73% on this metric.
Lululemon Athletica Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Lululemon Athletica's Operating Margin % or its related term are showing as below:
LTS:0JVT'
s Operating Margin % Range Over the Past 10 Years
Min: 17.96 Med: 21.37 Max: 23.67
Current: 18.29
LTS:0JVT's Operating Margin % is ranked better than 92.73% of 1128
companies
in the Retail - Cyclical industry
Industry Median: 3.905
vs LTS:0JVT: 18.29
Lululemon Athletica's 5-Year Average Operating Margin % Growth Rate was 1.30% per year.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Lululemon Athletica Operating Margin % Related Terms
Lululemon Athletica Operating Margin % Historical Data
* Premium members only.
The historical data trend for Lululemon Athletica's Operating 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.
LTS:0JVT vs BURL, GAP, URBN: Operating Margin % Comparison
For the Apparel Retail subindustry, Lululemon Athletica's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Lululemon Athletica's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Lululemon Athletica's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Lululemon Athletica's Operating Margin % for the fiscal year that ended in Jan. 2026 is calculated as
* 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.
Lululemon Athletica (LTS:0JVT) has a Operating Margin % of 11.21% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Lululemon Athletica and its competitors. This is 48% below median its historical median of 21.37. Over the past decade, Lululemon Athletica's Operating Margin % has ranged from 17.96 to 23.67. According to the industry distribution chart, Lululemon Athletica ranks #82 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 7.3%.
Is Lululemon Athletica's Operating Margin % too high?
Lululemon Athletica's current Operating Margin % of 11.21% is 48% below median its 10-year median of 21.37. Over the past 10 years, this metric has ranged from a low of 17.96 to a high of 23.67. The Retail - Cyclical industry median Operating Margin % is 3.91. Lululemon Athletica's value of 11.21% is 187.1% above this industry median. Based on the distribution chart, Lululemon Athletica ranks #82 out of 1128 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 78/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lululemon Athletica's Operating Margin % compare to BURL and GAP?
According to the Retail - Cyclical industry distribution chart, Lululemon Athletica ranks #82 out of 1128 companies for Operating Margin %. This places Lululemon Athletica in the top 7% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.91. Lululemon Athletica's value of 11.21% is 187.1% above this benchmark. Historically, Lululemon Athletica's own Operating Margin % has ranged from 17.96 to 23.67 over the past decade. While the company's 10-year median is 21.37 vs. the industry median of 3.91, 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 Operating Margin % for a Retail - Cyclical company?
The median Operating Margin % among Retail - Cyclical companies is 3.91, based on 1,128 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lululemon Athletica's current Operating Margin % of 11.21% is 187.1% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Lululemon Athletica and its competitors. For the Retail - Cyclical industry, the median Operating Margin % is 3.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lululemon Athletica's current Operating Margin % is 11.21%, which is 48% below median its own 10-year median of 21.37. 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 (LTS:0JVT) is currently considered Significantly Undervalued. The stock's GF Value™ is $360.09, compared to a current price of $112.15 — trading 68.9% below its estimated fair value. The current Operating Margin % is 11.21%, which is 48% below median its 10-year median of 21.37 and 187.1% above the Retail - Cyclical industry median of 3.91. Lululemon Athletica's overall GF Score™ is 78/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Lululemon Athletica (LTS:0JVT), the current Operating Margin % is 11.21% 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 (LTS:0JVT) Overvalued in 2026?
Based on GuruFocus' analysis, Lululemon Athletica stock appears to be undervalued.
The current stock price of $112.15 is trading 68.9% below its estimated GF Value™ of $360.09.
GuruFocus considers Lululemon Athletica to be Significantly Undervalued.
Key valuation signals for LTS:0JVT:
Operating Margin %: 11.21% (48% below median its 10-year median of 21.37)
GF Value™: $360.09 vs. price of $112.15 (68.9% below fair value)
Industry Position: 187.1% above the Retail - Cyclical median (#82 of 1128)
No single metric tells the full story. See the LTS:0JVT 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.
78GF Score
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