NEW YORK, July 18, 2026, 15:02 EDT
- U.S. markets remained shut on Saturday. Shares of Lululemon closed at $116.33 on Friday, falling 2.07%.
- The company’s market value stands at $13.43 billion, which is $1.93 billion less than Deckers, even though its midpoint sales are 1.88 times greater.
- Deckers is set to report on Thursday, providing the latest indication of premium athletic demand.
lululemon athletica inc. NASDAQ:LULU closed Friday with a market capitalization of $13.43 billion, $1.93 billion less than Deckers Outdoor Corporation NYSE:DECK. Lululemon’s forecasted sales midpoint, however, is 1.88 times that of Deckers’.
The gap offers a concise indication of investor caution. Lululemon is valued by the market at 1.21 times its midpoint sales, while Deckers is valued at 2.61 times.
Lululemon shares dropped 2.07% on Friday to close at $116.33, ending the week down 2.46%. The S&P 500 lost 1.55%, finishing with a 0.90-point deficit.
The stock is down 50.23% from its high of $233.75 recorded a year ago. Volume on Friday was 2.7 million shares, below the 50-day average of 3.7 million shares.
| Metric | Lululemon NASDAQ:LULU | Deckers NYSE:DECK |
|---|---|---|
| Friday closing price | $116.33 | $106.49 |
| Market capitalization | $13.43 billion | $15.37 billion |
| Annual revenue forecast | $11.00–$11.15 billion | $5.86–$5.91 billion |
| Projected revenue growth | Decrease 1% to unchanged | Growth in high-single digits |
| Market cap to midpoint sales | 1.21 times | 2.61 times |
| Trailing P/E ratio | 9.4 times | 14.7 times |
The sales multiples are initial estimates based on Friday’s market values and midpoint guidance figures. These reflect market-cap ratios, not enterprise-value ratios.
First-quarter numbers help account for the lower valuation. Revenue increased by 4% to $2.5 billion. Revenue in the Americas declined by 3%, but international revenue climbed 22%.
Gross margin declined by 410 basis points to reach 54.2%. Operating margin slid 730 basis points to 11.2%. Earnings were $1.69 per share, down from $2.60.
Management projects fiscal 2026 sales in the range of $11.0 billion to $11.15 billion, signaling either flat growth or a possible 1% decrease. Guidance for second-quarter earnings was set at $1.76 to $1.81 per share, falling short of the June analyst consensus of $2.68.
Interim co-CEO Meghan Frank stated that the yoga campaign “hasn’t had the expected halo effect on other areas of our assortment.” The product cycle is accelerating, with development timelines now at 15–16 months, down from the previous 18–24 months. Reuters
Guggenheim analyst Simeon Siegel described the brand as “strong, but an overstretched one.” He cautioned that revenue in North America may keep falling. Reuters
Heidi O’Neill, previously an executive at Nike Inc. NYSE:NKE, will take on the CEO role beginning September 8. A board agreement in June resolved a governance issue. The company’s turnaround now depends on product development, sales performance and margin improvement.
The upcoming peer test is set for Thursday. Deckers is scheduled to release fiscal first-quarter results at 16:30 EDT. The performance of Hoka and Ugg will indicate if robust demand for premium offerings continues to drive product momentum.
Risks exist on both sides. Improved product launches, reduced markdowns and stronger customer traffic in the Americas could support a higher multiple for Lululemon. However, additional tariff expenses, increased discounting or declining market share could weigh on estimates.
Currently, there is little premium for scale. Friday’s valuation reflects growth quality, which Lululemon has yet to regain. Lasting re-rating depends on further proof in comparable-sales and margins.
