lululemon athletica inc. — Earnings Quality Grade B
LULU · Consumer Cyclical
Generally healthy
Screening Summary
Management Signals
Source: SEC EDGAR 8-K Item 5.02, with exhibit links when available
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 6 days, change +2 days YoY
AR growth 58.7% exceeds revenue growth 4.9%
Revenue 4.9%, CFFO -29.5%. Cash follows revenue
Expense Quality
Inventory 17.9% vs COGS 11.6%. Normal
CapEx growth -1.2% vs revenue 4.9%. Normal
SG&A/Gross Profit = 64.7%. Normal
Gross margin 56.6%, change -2.6pp. Stable
Cash Flow Quality
CFFO/NI = 1.01. Profits backed by cash
FCF $0.9B, FCF/NI = 0.58
Accruals ratio = -0.3%. Low accruals
Cash $1.8B covers debt $1.8B
Balance Sheet Health
Goodwill+Intangibles $0.2B = 4% of equity. Manageable
Debt/EBITDA = 0.7x. Healthy
Other assets grew 31.0% vs revenue 4.9%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 12% YoY. Normal
Manipulation Score
M-Score = -1.88 (grey zone)
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25