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Stock-Based Compensation and Benefit Plans
 12 Months Ended
Feb. 02, 2025
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation and Benefit Plans Stock-Based Compensation and Benefit Plans
Stock-based compensation plans
The Company's eligible employees participate in various stock-based compensation plans, provided directly by the Company.
In June 2023, the Company's stockholders approved the adoption of the lululemon athletica inc. 2023 Equity Incentive Plan. The 2023 Equity Incentive Plan provides for awards in the form of stock options, stock appreciation rights, restricted stock purchase rights, restricted stock bonuses, restricted stock units, performance shares, performance-based restricted stock units, cash-based awards, other stock-based awards, and deferred compensation awards to employees (including officers and directors who are also employees), consultants, and directors of the Company.
The awards granted under the 2014 Equity Incentive Plan remain outstanding and continue to vest under their original conditions. No further awards will be granted under the 2014 Equity Incentive Plan.
The Company has granted stock options, performance-based restricted stock units, restricted stock units, and restricted shares. Stock options granted to date generally have a four-year vesting period and vest at a rate of 25% each year on the anniversary date of the grant. Stock options generally expire on the earlier of seven years from the date of grant, or a specified period of time following termination. Performance-based restricted stock units issued generally vest three years from the grant date and restricted shares generally vest one year from the grant date. Restricted stock units granted generally have a three-year vesting period and vest at a certain percentage each year on the anniversary date of the grant.
The Company issues previously unissued shares upon the exercise of Company options, vesting of performance-based restricted stock units or restricted stock units that are settled in common stock, and granting of restricted shares.
Stock-based compensation expense charged to income for the plans was $88.6 million, $92.7 million, and $77.2 million for 2024, 2023, and 2022, respectively.
Total unrecognized compensation cost for all stock-based compensation plans was $122.3 million as of February 2, 2025, which is expected to be recognized over a weighted-average period of 2.0 years, and was $135.9 million as of January 28, 2024 over a weighted-average period of 2.0 years.
A summary of the balances of the Company's stock-based compensation plans as of February 2, 2025, January 28, 2024, and January 29, 2023, and changes during the fiscal years then ended is presented below: 
Stock OptionsPerformance-Based Restricted Stock UnitsRestricted SharesRestricted Stock Units
NumberWeighted-Average Exercise PriceNumberWeighted-Average Grant Date Fair ValueNumberWeighted-Average Grant Date Fair ValueNumberWeighted-Average Grant Date Fair Value
(In thousands, except per share amounts)
Balance as of January 30, 2022789 $186.10 167 $225.27 4 $326.70 238 $265.90 
Granted192 371.04 117 274.90 5 308.66 120 364.51 
Exercised/vested93 127.68 114 170.04 4 326.70 111 241.02 
Forfeited/expired22 286.56 4 307.76 — — 26 334.39 
Balance as of January 29, 2023866 $230.78 166 $295.93 5 $308.66 221 $323.89 
Granted213 360.00 121 296.27 4 370.59 132 364.63 
Exercised/vested264 160.45 104 201.56 5 308.66 106 294.65 
Forfeited/expired32 332.26 8 351.14 — 368.36 24 350.38 
Balance as of January 28, 2024783 $285.69 175 $349.84 4 $370.85 223 $359.12 
Granted232 383.09 125 354.40 5 319.19 146 375.99 
Exercised/vested95 209.54 100 310.86 4 371.33 101 351.61 
Forfeited/expired71 363.58 23 374.15 — — 29 371.69 
Balance as of February 2, 2025849 $314.27 177 $371.83 5 $317.86 239 $371.09 
A total of 3.5 million shares of the Company's common stock have been authorized for future issuance under the Company's 2023 Equity Incentive Plan.
The Company's performance-based restricted stock units are awarded to eligible employees and entitle the grantee to receive a maximum of two shares of common stock per performance-based restricted stock unit if the Company achieves specified performance goals and the grantee remains employed during the vesting period. The fair value of performance-based restricted stock units is based on the closing price of the Company's common stock on the grant date. Expense for performance-based restricted stock units is recognized when it is probable that the performance goal will be achieved.
The grant date fair value of the restricted shares and restricted stock units is based on the closing price of the Company's common stock on the grant date.
The grant date fair value of each stock option granted is estimated on the date of grant using the Black-Scholes model. The closing price of the Company's common stock on the grant date is used in the model. The assumptions used to calculate the fair value of the options granted are evaluated and revised, as necessary, to reflect market conditions and the Company's historical experience. The expected term of the options is based upon the historical experience of similar awards, giving consideration to expectations of future exercise behavior. Expected volatility is based upon the historical volatility of the Company's common stock for the period corresponding with the expected term of the options. The risk-free interest rate is based on the U.S. Treasury yield curve for the period corresponding with the expected term of the options. The following are weighted averages of the assumptions that were used in calculating the fair value of stock options granted in 2024, 2023, and 2022:
 202420232022
Expected term3.75 years3.75 years3.75 years
Expected volatility37.39 %42.35 %40.00 %
Risk-free interest rate4.30 %3.49 %2.51 %
Dividend yield— %— %— %
The following table summarizes information about stock options outstanding and exercisable as of February 2, 2025:
 
Outstanding
Exercisable
Range of Exercise Prices
Number of Options
Weighted-Average Exercise Price
Weighted-Average Remaining Life (Years)
Number of Options
Weighted-Average Exercise Price
Weighted-Average Remaining Life (Years)
(In thousands, except per share amounts and years)
$85.96-$188.84
206 $169.31 1.4206 $169.31 1.4
$198.73-$356.93
142 306.87 3.685 308.49 3.2
$358.09-$358.09
165 358.09 5.139 358.09 5.0
$368.36-$381.86
132 376.52 4.260 376.70 4.1
$388.90-$502.74
204 390.46 6.14 417.71 3.4

849 $314.27 4.1394 $251.93 2.6
Intrinsic value
$84,990 $64,006 
As of February 2, 2025, the unrecognized compensation cost related to these options was $38.1 million, which is expected to be recognized over a weighted-average period of 2.5 years. The weighted-average grant date fair value of options granted during 2024, 2023, and 2022 was $130.87, $130.75, and $124.17, respectively.
The following table summarizes the intrinsic value of options exercised and awards that vested during 2024, 2023, and 2022:
202420232022
(In thousands)
Stock options$16,183 $69,316 $19,906 
Performance-based restricted stock units38,303 33,198 37,672 
Restricted shares1,163 1,661 1,152 
Restricted stock units37,972 38,016 37,275 
$93,621 $142,191 $96,005 
Employee share purchase plan
The Company has an Employee Share Purchase Plan ("ESPP"). Contributions are made by eligible employees, subject to certain limits defined in the ESPP, and the Company matches one-third of the contribution. The maximum number of shares authorized to be purchased under the ESPP is 6.0 million shares. All shares purchased under the ESPP are purchased in the open market. During each of 2024, 2023, and 2022, there were 0.1 million shares purchased. As of February 2, 2025, 4.3 million shares remain authorized to be purchased under the ESPP.
Defined contribution pension plans
The Company offers defined contribution pension plans to its eligible employees. Participating employees may elect to defer and contribute a portion of their eligible compensation to a plan up to limits stated in the plan documents, not to exceed the dollar amounts set by applicable laws. The Company matches 50% to 75% of the contribution depending on the participant's length of service, and the contribution is subject to a two-year vesting period. The Company's net expense for the defined contribution plans was $22.2 million, $19.8 million, and $14.0 million during 2024, 2023, and 2022, respectively.