Published first at https://www.3minutebreakdowns.com Lululemon stock analysis. Ticker: $LULU Lululemon reported earnings on Friday and the stock dropped 14% taking the company’s market value to 35.7 billion dollars. With 2 billion of cash on the balance sheet and minimal debt the enterprise value i...

Published first at https://www.3minutebreakdowns.com Lululemon stock analysis. Ticker: $LULU Lululemon reported earnings on Friday and the stock dropped 14% taking the company’s market value to 35.7 billion dollars. With 2 billion of cash on the balance sheet and minimal debt the enterprise value is 33.7 billion. Lululemon’s 2024 results were solid if not spectacular. Full year revenues increased by 10% to 10.6 billion, net income grew 17% to 1.8 billion while free cash flow fell slightly to just under 1.5 billion. So Lululemon stock is now valued at 20 times earnings and 23 times free cash flow which is right near the bottom of the company’s historical range. Importantly, Lululemon is still on track to meet the ambitious targets it set in 2022. Those targets called for $ 12.5 billion of revenue by 2026 so the company only needs to grow sales 18% over the next two years to make it. Looking more closely at Lululemon’s results reveals some interesting trends. While US revenue makes up 65% of the company’s total, US sales only grew 2% last year, with same store sales declining 1%. So most of Lululemon’s growth is coming from overseas. China revenues were up 41% last year with a 25% increase in same store sales and the rest of the world grew 27% with a 19% increase in same store sales.