Name: Operating Profit Margin

Definition: Operating profit margin focuses on profits from the company’s core business — before interest payments and taxes. It reflects how well the business manages operating costs relative to sales. Strong operating margins show efficient day-to-day operations. Shrinking margins may reveal rising overhead, pricing weakness, or declining efficiency.

Interpretation:
• In '2022', LULU's operating profit margin was 22.0%, highlighting profit earned from core business operations. Industry average for Apparel in '2022' stood at 6.0%.
• In '2023', LULU's operating profit margin was 21.3%, highlighting profit earned from core business operations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Apparel in '2023' stood at 7.1%. Industry average increased by 1.1% compared to previous year.
• In '2024', LULU's operating profit margin was 22.9%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Apparel in '2024' stood at 5.8%. Industry average declined by 1.2% from previous year.
• In '2025', LULU's operating profit margin was 23.7%, highlighting profit earned from core business operations. The increase since '2024' reflects strengthening financial performance. Industry average for Apparel in '2025' stood at 6.5%. Industry average increased by 0.7% compared to previous year.
Overall, LULU's operating profit margin has remained generally stable over the past 4 years.

Formula: Operating Profit Margin = Operating Income / Revenue

Good Range: Often 10%-30% depending on business model.