Lululemon: Capital Structure and Firm Value

Ying Li

Co-Presenters: Individual Presentation

College: College of Business and Public Management

Major: BS.FINANCE

Faculty Research Mentor: Andreas Kakolyris

Abstract:

This study analyzes the financial performance and market valuation of Lululemon Athletica Inc. by analyzing its growth and profitability within the premium athletic apparel industry. Lululemon is a global brand founded in 1998 and has experienced strong revenue growth and high operating performance in recent years. Our analysis uses Bloomberg Terminal data to evaluate key financial indicators, such as revenue growth and operating profit margins. The metric analysis identifies performance patterns and related industry position. We will also use Nike as a comparison company from a different segment of the same industry. The study discusses the relationship between Lululemon's sustained growth and its valuation. Financial performance and firm valuation are closely related in competitive consumer markets, where growth and profitability often influence investor expectations. The results provide insight into how financial performance and market perception influence firm value in the competitive athletic apparel industry. The findings are presented and analyzed in the poster.