Lululemon Athletica vs Tapestry
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KIRA’s take AI analyst
I put Lululemon Athletica and Tapestry side by side, using each one’s latest annual report. Here is what stands out:
- Lululemon Athletica is the larger business, with $11.1B of revenue in fiscal 2025 against $8.0B for Tapestry.
- Tapestry grew revenue faster (14.2%, against 4.9%).
- Tapestry kept more of each dollar of sales as operating profit (23.9% operating margin, against 19.9%).
- Tapestry turned more of its sales into free cash flow (22.6% FCF margin, against 8.3%).
- Tapestry earned a higher return on the capital invested in it (77.9%, against 56.8%).
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Lululemon Athletica
LULU
2/11
5-year growthNet debt / EBITDA
Tapestry
TPR
9/11
Revenue growthGross marginOperating marginNet marginFCF marginReturn on capitalReturn on equityPiotroski F-scoreShare count change
Side by side
Best in the row
| Latest fiscal year | LULU FY25 | TPR FY26 |
|---|---|---|
| Size | ||
| Market cap | $11.6B | $23.3B |
| Revenue | $11.1B | $8.0B |
| Free cash flow | $922M | $1.8B |
| Net income | $1.6B | $1.5B |
| Growth | ||
| Revenue growth | 4.9% | 14.2% |
| 5-year growth | 20.3% | 6.9% |
| Share count change | −3.9% | −5.5% |
| Profitability | ||
| Gross margin | 56.6% | 77.8% |
| Operating margin | 19.9% | 23.9% |
| Net margin | 14.2% | 19.1% |
| FCF margin | 8.3% | 22.6% |
| Return on capital | 56.8% | 77.9% |
| Return on equity | 34.0% | 197.1% |
| Balance sheet | ||
| Net debt | −$1.8B | $1.2B |
| Net debt / EBITDA | −0.7x | 0.6x |
| Dividends and buybacks | $1.2B | $1.9B |
| Valuation & quality | ||
| P/E | 8.5x | — |
| Piotroski F-score | 5 | 7 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
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.