Lululemon Athletica Inc. (NASDAQ:LULU) Earnings Preview: A Closer Look at Financials and Market Position

Core Insights - Lululemon Athletica Inc. is set to release its quarterly earnings on December 11, 2025, with analysts predicting an EPS of $2.22 and revenue of approximately $2.48 billion [1][6] - The company's stock price has decreased significantly, yet it continues to show strong financials and free cash flow, with a growth rate of 7-8% [2][6] - Lululemon has a history of exceeding earnings expectations, achieving an average earnings surprise of 4.77% over the last two quarters [3][6] Financial Performance - The upcoming earnings report anticipates a 22.7% decline in EPS year-over-year, while revenue is projected to increase by 3.8% to $2.49 billion [4] - Analysts have maintained their consensus EPS estimate over the past month, indicating stability in expectations [4] - Lululemon's financial metrics include a P/E ratio of approximately 12.21 and a price-to-sales ratio of about 1.90, reflecting the market's valuation of its earnings and revenue [5] Debt and Liquidity - The company's debt-to-equity ratio stands at 0.40, suggesting a moderate level of debt [5] - A current ratio of 2.27 indicates Lululemon's ability to cover short-term liabilities [5]