Lululemon Athletica vs Ralph Lauren
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The short version
- Lululemon Athletica is the larger business, with $11.1B of revenue in fiscal 2025 against $8.1B for Ralph Lauren.
- Ralph Lauren grew revenue faster (14.6%, against 4.9%).
- Lululemon Athletica kept more of each dollar of sales as operating profit (19.9% operating margin, against 14.5%).
- Ralph Lauren turned more of its sales into free cash flow (9.2% FCF margin, against 8.3%).
- Lululemon Athletica earned a higher return on the capital invested in it (56.8%, against 45.4%).
- Investors pay more for each dollar of Ralph Lauren’s earnings: a P/E of 23.8x against 8.1x for Lululemon Athletica.
| Latest fiscal year | LULU · FY25 | RL · FY26 |
|---|---|---|
| Size | ||
| Market cap | $11.2B | $23.1B |
| Revenue | $11.1B | $8.1B |
| Free cash flow | $922M | $746M |
| Net income | $1.6B | $941M |
| Growth | ||
| Revenue growth | 4.9% | 14.6% |
| 5-year growth | 20.3% | 13.0% |
| Share count change | −3.9% | −2.7% |
| Profitability | ||
| Gross margin | 56.6% | 69.9% |
| Operating margin | 19.9% | 14.5% |
| Net margin | 14.2% | 11.6% |
| FCF margin | 8.3% | 9.2% |
| Return on capital | 56.8% | 45.4% |
| Return on equity | 34.0% | 34.7% |
| Balance sheet | ||
| Net debt | −$1.8B | −$593M |
| Net debt / EBITDA | −0.7x | −0.4x |
| Dividends and buybacks | $1.2B | $840M |
| Valuation & quality | ||
| P/E | 8.1x | 23.8x |
| Piotroski F-score | 5 | 8 |
FY17
LULU $2.6B
RL $6.7B
FY18
LULU $3.3B
RL $6.2B
FY19
LULU $4.0B
RL $6.3B
FY20
LULU $4.4B
RL $6.2B
FY21
LULU $6.3B
RL $4.4B
FY22
LULU $8.1B
RL $6.2B
FY23
LULU $9.6B
RL $6.4B
FY24
LULU $10.6B
RL $6.6B
FY25
LULU $11.1B
RL $7.1B
FY26
LULU —
RL $8.1B
LULU
RL
FY17
LULU 17.2%
RL −1.4%
FY18
LULU 21.5%
RL 8.1%
FY19
LULU 22.3%
RL 8.9%
FY20
LULU 18.6%
RL 5.2%
FY21
LULU 21.3%
RL −1.0%
FY22
LULU 16.4%
RL 12.8%
FY23
LULU 22.2%
RL 10.9%
FY24
LULU 23.7%
RL 11.4%
FY25
LULU 19.9%
RL 13.2%
FY26
LULU —
RL 14.5%
LULU
RL
FY17
LULU $331M
RL $669M
FY18
LULU $517M
RL $814M
FY19
LULU $386M
RL $586M
FY20
LULU $574M
RL $484M
FY21
LULU $995M
RL $273M
FY22
LULU $328M
RL $549M
FY23
LULU $1.6B
RL $194M
FY24
LULU $1.6B
RL $905M
FY25
LULU $922M
RL $1.0B
FY26
LULU —
RL $746M
LULU
RL
FY17
LULU 41.6%
RL −2.5%
FY18
LULU 81.5%
RL 10.9%
FY19
LULU 89.9%
RL 19.5%
FY20
LULU 52.0%
RL 15.2%
FY21
LULU 67.5%
RL −1.8%
FY22
LULU 49.1%
RL 33.5%
FY23
LULU 76.3%
RL 24.9%
FY24
LULU 81.6%
RL 28.4%
FY25
LULU 56.8%
RL 36.5%
FY26
LULU —
RL 45.4%
LULU
RL
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.