lululemon athletica inc. vs Ermenegildo Zegna N.V., two Apparel stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Lululemon, the premium athletic label, and Ermenegildo Zegna, the Italian luxury house, both aim at well-off shoppers, but their stocks tell opposite stories. Lululemon earns 30.25% on equity and a 13.03% net margin yet trades at just 9.51 times earnings. Zegna earns a milder 9.96% and 5.71% yet commands 31.76 times, more than three times Lululemon's multiple. Both carry no debt. Lululemon's 9.43% free cash flow yield edges Zegna's 8.14%. The market has soured on Lululemon's growth and stayed enamored of Zegna's cachet, pricing the stronger business well below the prettier one.
Comparison updated 2026-07-11.
| Metric | LULU | ZGN |
|---|---|---|
| Price | $119.23 | $13.44 |
| Market cap | $13.8B | $3.5B |
| Sector | Apparel | Apparel |
| Stage | Mature | Mature |
| P/E | 9.7 | 32.5 |
| P/B | 2.85 | 2.92 |
| P/S | 1.23 | 1.67 |
| EV/EBITDA | 5.4 | 7.8 |
| Revenue growth | +4.7% | +10.9% |
| Gross margin | 54.2% | 67.5% |
| Operating margin | 11.2% | 7.3% |
| Net margin | 13.0% | 5.7% |
| Return on equity | 30.3% | 10.0% |
| Return on assets | 17.1% | 3.9% |
| Return on invested capital | 28.9% | 9.9% |
| FCF yield | 9.3% | 8.0% |
| Debt / equity | 0.00 | 0.00 |
| Current ratio | 2.23 | 1.59 |
| Altman Z (solvency) | 4.67 | 7.02 |
| Piotroski F (quality) | 5 / 9 | 7 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.