Is lululemon athletica inc. (LULU) Halal?
Shariah Screening — 5 Standards
Based on financial data from January 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 7.8% / 30% | 9.8% / 30% | 1.5% / 30% | 0.66% / 5% | ✓ HALAL |
| DJIM | 7.8% / 33% | 9.8% / 33% | 1.5% / 33% | 0.66% / 5% | ✓ HALAL |
| MSCI | 20.7% / 33% | 26.1% / 33% | 4.0% / 33% | 0.66% / 5% | ✓ HALAL |
| S&P | 7.8% / 33% | 9.8% / 33% | 1.5% / 33% | 0.66% / 5% | ✓ HALAL |
| FTSE | 20.7% / 33% | 26.1% / 33% | 4.0% / 50% | 0.66% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 56.6% | |
| Operating Margin | 22.3% | |
| Net Margin | 14.2% | |
| Return on Equity (ROE) | 34.0% | |
| Return on Assets (ROA) | 17.2% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $2.3B |
| Free Cash Flow | $1.6B |
| Total Debt | $1.6B |
| Debt-to-Equity | 36.2 |
| Current Ratio | 2.3 |
| Total Assets | $7.6B |
Price & Trading
| Last Close | $151.41 |
| 50-Day MA | $174.90 |
| 200-Day MA | $190.60 |
| Avg Volume | 2.7M |
| Beta | 1.0 |
|
52-Week Range
$143.96
| |
About lululemon athletica inc. (LULU)
lululemon athletica inc., together with its subsidiaries, designs, distributes, and retails technical athletic apparel, footwear, and accessories for women and men under the lululemon brand in the United States, Canada, Mexico, China Mainland, Hong Kong, Taiwan, Macau, and internationally. It offers pants, shorts, tops, and jackets for athletic activities, such as yoga, running, training, and other activities. The company also provides fitness-inspired accessories. It sells its products through company-operated stores; seasonal stores, pop-ups, university campus retailers, and yoga and fitness studios; outlets; Like New, a re-commerce program; and its e-commerce website. The company was founded in 1998 and is based in Vancouver, Canada.
Purification Calculator
As a halal stock with 0.66% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is lululemon athletica inc. (LULU) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), lululemon athletica inc. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is lululemon athletica inc.'s debt ratio?
lululemon athletica inc.'s debt ratio is 7.8% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 20.7%.
Does lululemon athletica inc. require dividend purification?
Yes, lululemon athletica inc. has an impermissible income ratio of 0.66%, which means 0.66% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are lululemon athletica inc.'s key financial metrics?
lululemon athletica inc. has a market capitalization of $17.1B, trailing P/E ratio of 11.0, and revenue of $10.6B. The company maintains a gross margin of 56.6% and a net margin of 14.2%. Return on equity stands at 34.0%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.