Lululemon Athletica

In this pitch deck, analysts Adam Orvegård and Elvira Husén present the investment case for
Lululemon Athletica. As a global premium activewear brand, Lululemon combines performance-driven
product innovation with a tightly controlled direct-to-consumer model, resulting in industry-leading
margins and strong customer loyalty. Despite market fixation on near-term U.S. demand softness,
tariffs and competitive noise, analysts see a structurally resilient business with durable unit economics,
strong international growth and superior cash generation. With continued global store expansion,
sustained brand investment and valuation normalization supported by fundamentals, the base case
implies a 66% upside and a clear path to multiple re-rating in the coming years.

Investment Thesis
● Performance-driven product quality and fit drive higher repeat purchase rates supporting
stable demand and customer retention
● Capital-light growth model with 59% gross margin, net-cash balance sheet and attractive
global store economics
● Financial scale with over 10bn in revenue, enables sustained investment in marketing and
product innovation, supporting international expansion
● Shares trade at 10x EV/EBIT, well below historical levels despite strong margins, cash
generation and a long-term growth profile