Inventory Turnover › By Retailer › Lululemon
Lululemon Inventory Turnover: Premium Apparel Case Study
lululemon athletica inc. (LULU) turned its inventory 3.1x in fiscal 2025 (52 weeks ended February 1, 2026), about 119 days on hand. The ratio held steady even though year-end inventory jumped 18% to $1.7B, in a year when tariffs raised the cost of each unit. All figures are from the company's 10-K filings on SEC EDGAR.
Quick answer: Lululemon's fiscal 2025 and 2024 10-K inventory turnover ratio
Fiscal 2025 (10-K)
3.1x for the 52 weeks ended February 1, 2026. $4,818.5M cost of goods sold over $1,571.45M average inventory ($1,442.1M opening, $1,700.8M closing). About 119 days on hand.
Fiscal 2024 (10-K)
3.1x for the 53 weeks ended February 2, 2025. $4,317.3M cost of goods sold over $1,382.85M average inventory. About 117 days on hand.
Turnover = cost of goods sold / average inventory (mean of opening and closing balance-sheet inventory, net of the inventory provision). Figures from Lululemon's 10-K filings on SEC EDGAR (CIK 0001397187), verified 10 November 2026.
Fiscal 2022 - fiscal 2025 turnover history
| Fiscal Year | Cost of Sales | Inv (start) | Inv (end) | Turnover | Days on Hand |
|---|---|---|---|---|---|
| Fiscal 2022 (ended Jan 29, 2023) | $3,618.2M | $966.5M | $1,447.4M | 3.0x | 122 |
| Fiscal 2023 (ended Jan 28, 2024) | $4,009.9M | $1,447.4M | $1,323.6M | 2.9x | 126 |
| Fiscal 2024 (ended Feb 2, 2025) | $4,317.3M | $1,323.6M | $1,442.1M | 3.1x | 117 |
| Fiscal 2025 (ended Feb 1, 2026) | $4,818.5M | $1,442.1M | $1,700.8M | 3.1x | 119 |
Inventory (start) equals the prior year's inventory (end). Lululemon's fiscal year ends on the Sunday closest to January 31 of the following year. Fiscal 2024 was a 53-week year, which lifts that year's cost of goods sold and turnover slightly.
3.0x · Inventory rose 50% in one year, faster than the 37% rise in cost of goods sold, taking stock to $1.45B.
2.9x · Inventory came down 9% while cost of goods sold grew 11%, but the high opening balance kept average inventory elevated. Lululemon also stopped selling its Studio Mirror and took a $23.7M obsolescence provision.
3.1x · The best year in the window. A 53-week calendar added cost of goods sold while inventory grew a moderate 9%.
3.1x · Net revenue rose 5% to $11.1B. Year-end inventory rose 18% to $1.7B, in a year when tariffs raised the cost of inventory in the United States.
A steady ratio hiding a costlier unit
On the headline number fiscal 2025 looks uneventful: 3.1x, the same as the year before. Underneath, year-end inventory rose 18% to $1.7B while net revenue rose 5%. The ratio held because cost of goods sold also rose 12%, and tariffs pushed up both lines. Lululemon's 10-K says tariffs imposed since April 2025 have raised the cost of its inventory in the United States, and the US ended the de minimis duty-free exemption for certain shipments from May 2, 2025.
The company's own guidance shows how much of the rise is price. It expects inventory to grow in the mid-single digits in dollars by the end of 2026 while falling slightly in units. When dollars rise and units fall, each unit costs more. Turnover in dollars can look stable while the business carries no more product than before, or even less.
The pressure shows up in the Americas. Revenue there fell 1% and comparable sales fell 3%, while product margin in the segment dropped 340 basis points on tariffs and higher markdowns. Growth came from abroad: China Mainland revenue rose 29%. A premium brand that marks down more to move stock in its largest market is the situation where inventory discipline matters most, and the 10-K lists reducing the share of marked-down product as part of its Americas plan.
What sets Lululemon's turnover
1. Premium pricing and full ranges
Lululemon earned a 56.6% gross margin in fiscal 2025. A brand with that margin carries full size and colour ranges so it can sell at full price, which holds more stock per dollar of sales than a value or off-price retailer. Each unit on the shelf earns more, so a slower turn still pays.
2. Store growth abroad
Lululemon added 44 net new company-operated stores in fiscal 2025, reaching 811, and increased square footage by 11%. It expects most 2026 openings to be in China Mainland. New stores need opening stock before they reach full sales, which holds turnover down while the fleet expands.
3. Tariffs and duty in the unit cost
Lululemon values inventory at weighted-average cost including freight, duty and other landing costs. Higher tariffs therefore raise both the inventory balance and cost of goods sold. The ratio stays roughly level, but more cash is tied up for the same amount of product.
4. A broad cost of goods sold
Cost of goods sold includes product costs, freight and duty, shrink and provisions, store occupancy, distribution centres, and the salaries of the product design, sourcing, supply chain and merchandising teams. That is a wider numerator than most retailers use, so on a merchandise-only basis Lululemon's turnover would be lower than 3.1x.
Where 3.1x sits among retailers
Latest 10-K inventory turnover, times per year
Each figure is cost of sales over average inventory from the company's latest 10-K. Every retailer here has its own case study; the full ranked list is on the inventory turnover by retailer page.
Lululemon sits at the slow end of apparel, close to Macy's (3.0x) and below Gap (4.3x) and the off-price chains (TJX 6.1x, Ross 6.5x). Nike, the comparable premium athletic brand, turned 3.5x in its fiscal 2026. Premium apparel generally turns slower and earns more per unit; the useful comparison is with other full-price brands, not with discount formats.
For a premium apparel brand, the warning sign is not a ratio near 3x but inventory growing faster than sales for more than a year, which is how Nike's fiscal 2022 glut built up. See the Nike case study and the apparel turnover benchmarks.
Frequently asked questions
What is Lululemon's inventory turnover ratio?
Lululemon turned its inventory 3.1x in fiscal 2025, the 52 weeks ended February 1, 2026. That is $4,818.5M of cost of goods sold divided by $1,571.45M average inventory (the mean of the $1,442.1M opening and $1,700.8M closing balances) from its 10-K. It works out to about 119 days of inventory on hand.
Why did Lululemon's inventory rise 18% in fiscal 2025?
The 10-K points mainly to unit cost. It says tariffs imposed since April 2025 have increased the cost of its inventory in the United States, and the US removed the de minimis duty exemption for certain shipments from May 2, 2025. The company also expects inventory dollars to rise in the mid-single digits by the end of 2026 while units slightly decrease, a sign that each unit now costs more. Store growth added to it too: Lululemon opened 44 net new company-operated stores, ending the year with 811.
How is Lululemon's inventory turnover calculated from the 10-K?
Divide cost of goods sold by average inventory, the mean of the opening and closing net inventory balances on the balance sheet. Lululemon's cost of goods sold is broad: besides product, freight and duty it includes store occupancy, distribution centres and the costs of its product design, sourcing, supply chain and merchandising departments. For fiscal 2025: $4,818.5M / (($1,442.1M + $1,700.8M) / 2) = 3.1x.
Is 3.1x low for an apparel retailer?
It is low next to mass and off-price apparel (Gap 4.3x, TJX 6.1x, Ross 6.5x) but normal for a premium brand. Lululemon earned a 56.6% gross margin in fiscal 2025 ($6,284.1M gross profit on $11,102.6M net revenue), so each unit of stock earns far more than at a value retailer. A premium brand trades some speed for full-price selling and complete size ranges; the risk is when stock builds faster than sales and has to be marked down.