Lululemon Athletica (LTS:0JVT) Financial Strength: 7 (As of Jul. 2026) — Near Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

LTS:0JVT Lululemon Athletica Inc LTS:0JVT
78 GF Score
Price $100.46
GF Value $320.52
Valuation Significantly Undervalued
! 1 Warning Sign
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What is Lululemon Athletica Financial Strength?

Lululemon Athletica LTS:0JVT -15.94% 78 Financial Strength is 7 as of Jul. 2026, which is at its 10-year median of 7.00. GuruFocus rates LTS:0JVT with a GF Score™ of 78/100 and a GF Value™ of $320.52 (Significantly Undervalued). The stock has 1 warning sign investors should review.

Lululemon Athletica has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

GuruFocus does not calculate Lululemon Athletica's interest coverage with the available data. Lululemon Athletica's debt to revenue ratio for the quarter that ended in Jul. 2026 was 0.22. As of today, Lululemon Athletica's Altman Z-Score is 4.92.


Lululemon Athletica  (LTS:0JVT) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Lululemon Athletica has the Financial Strength Rank of 7.


Lululemon Athletica Financial Strength Related Terms


LTS:0JVT vs BURL, GAP, VSXY: Financial Strength Comparison

For the Apparel Retail subindustry, Lululemon Athletica's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Lululemon Athletica's Financial Strength distribution charts can be found below:

* The bar in red indicates where Lululemon Athletica's Financial Strength falls into.


LTS:0JVT
78GF Score
Lululemon Athletica Inc LTS:0JVT
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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Lululemon Athletica Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Lululemon Athletica's Interest Expense for the months ended in Jul. 2026 was $0 Mil. Its Operating Income for the months ended in Jul. 2026 was $454 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jul. 2026 was $1,774 Mil.

Lululemon Athletica's Interest Coverage for the quarter that ended in Jul. 2026 is

GuruFocus does not calculate Lululemon Athletica's interest coverage with the available data.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Lululemon Athletica's Debt to Revenue Ratio for the quarter that ended in Jul. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Jul. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(366.649 + 1774.478) / 9662.524
=0.22

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Lululemon Athletica has a Z-score of 4.92, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.92 is strong.

* 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.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 7 mean?
Lululemon Athletica (LTS:0JVT) has a Financial Strength of 7 as of Jul. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Lululemon Athletica and its competitors. This is near median its historical median of 7.00. Over the past decade, Lululemon Athletica's Financial Strength has ranged from 6.00 to 10.00.
Is Lululemon Athletica's Financial Strength too high?
Lululemon Athletica's current Financial Strength of 7 is near median its 10-year median of 7.00. Over the past 10 years, this metric has ranged from a low of 6.00 to a high of 10.00. 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 Financial Strength compare to BURL and GAP?
Lululemon Athletica's Financial Strength of 7 can be compared against companies in the Retail - Cyclical industry. Historically, Lululemon Athletica's own Financial Strength has ranged from 6.00 to 10.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Retail - Cyclical company?
A good Financial Strength depends on the Retail - Cyclical industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Lululemon Athletica and its competitors. Lululemon Athletica's current Financial Strength is 7, which is near median its own 10-year median of 7.00. 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 $320.52, compared to a current price of $100.46 — trading 68.7% below its estimated fair value. The current Financial Strength is 7, which is near median its 10-year median of 7.00. 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 Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Lululemon Athletica (LTS:0JVT), the current Financial Strength is 7 as of Jul. 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 $100.46 is trading 68.7% below its estimated GF Value™ of $320.52. GuruFocus considers Lululemon Athletica to be Significantly Undervalued.

Key valuation signals for LTS:0JVT:

  • Financial Strength: 7 (near median its 10-year median of 7.00)
  • GF Value™: $320.52 vs. price of $100.46 (68.7% below fair value)
  • GF Score™: 78/100 with 1 warning sign

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 Business Description

Address 1818 Cornwall Avenue, Vancouver, BC, CAN, V6J 1C7
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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Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$100.46
Price
$320.52
GF Value