Is Lululemon Athletica Stock Halal?
Lululemon Athletica Inc. · LULU · NASDAQ
Lululemon Athletica Inc. (LULU) passes our AAOIFI-based screen. Its core business is permissible, and (data as of 2026-05-03) interest-bearing debt is 15.8% of market cap and cash plus interest-bearing securities 11.2% — both inside the 30% AAOIFI thresholds. Ratios move with the share price, so check the data-as-of date; any incidental interest income should be purified.
Financial data as of 2026-05-03 · Screening basis: AAOIFI · Last reviewed 2026-06-15
Our Analysis
Lululemon Athletica Inc. is a publicly traded company in its sector. Review the latest 10-K segment disclosure for revenue mix.
On AAOIFI financial ratios as of 2026-05-03: interest-bearing debt is 15.8% of market cap, cash plus interest-bearing securities 11.2%, and filing-verified impermissible income 0.0% (Interest income not separately material in the annual filing (Lululemon Athletica Inc. FY2025 (fiscal year ended 2026-02…) — against 30%/30%/5% limits on our screen.
Zoya's public page did not return a clear status when we checked (checked 2026-06-15). Musaffa rates it doubtful. U.S. Shariah ETFs SPUS and HLAL publish holdings on their own schedules — absence from a top-holdings list is not the same as a failed screen; verify current ETF holdings if index validation matters to you.
Practical takeaway: business activity passes on our reading, ratios pass on dated figures above, and major retail screeners lean compliant — still re-check after each 10-K, purify incidental interest income from dividends, and avoid margin or options on the position.
Business Activity Screen
Lululemon Athletica Inc., alongside its subsidiaries, specializes in the design, global distribution, and retail of athletic apparel and accessories for both women and men. Its business operations are structured into two main divisions: company-owned retail establishments and direct-to-consumer sales. The firm's offerings encompass a range of clothing such as pants, shorts, tops, and jackets, all crafted for promoting a healthy lifestyle and facilitating athletic endeavors. These activities span
Interest income not separately material in the annual filing (Lululemon Athletica Inc. FY2025 (fiscal year ended 2026-02-01, Form 10-K)); immaterial vs total revenue — well under 5%.
Financial Ratio Screen
| Screen | Value | AAOIFI limit | Result |
|---|---|---|---|
| Interest-bearing debt / market cap | 15.8% | < 30% | Pass |
| Cash + interest-bearing securities / market cap | 11.2% | < 30% | Pass |
| Impermissible income / total revenueInterest income not separately material in the annual filing (Lululemon Athletica Inc. FY2025 (fiscal year ended 2026-02-01, Form 10-K)); immaterial vs total revenue — well under 5%. | 0.0% | < 5% | Pass |
Spot market cap at research date (consider trailing average for borderline names). Data as of 2026-05-03 · thresholds per AAOIFI Shariah standards.
This verdict uses the AAOIFI standard — the most widely used and, at a 30% debt limit, the most conservative mainstream Shariah standard. Interest-bearing debt and interest-bearing securities each stay under 30% of market cap, and impermissible income under 5% of revenue. Other standards (Dow Jones Islamic, S&P Shariah, MSCI Islamic, FTSE Yasaar) use ~33% limits or screen against total assets, so a borderline company can be rated differently by each. How we screen & why screeners disagree →
How Lululemon Athletica screens across Shariah standards
All three mainstream bases below reach the same conclusion for this company.
| Standard | Debt | Cash & interest securities | Limit / basis | Result |
|---|---|---|---|---|
| AAOIFI (our standard) | 15.8% | 11.2% | < 30% of market cap | Pass |
| Dow Jones Islamic / S&P Shariah thresholdDow Jones and S&P apply this limit against a trailing 24–36-month average market cap; shown here on the same point-in-time market cap for comparison. | 15.8% | 11.2% | < 33% of market cap | Pass |
| MSCI Islamic / FTSE Yasaar basisTotal-assets denominator. MSCI/FTSE also apply entry/exit buffers and a receivables screen we do not reproduce. | 25.0% | 17.8% | < 33.33% of total assets | Pass |
HalalWallet computation reproducing each standard's threshold and denominator from public filings (balance sheet as of 2026-05-03) — not the providers' licensed index determinations, which can differ. Debt is interest-bearing borrowings (operating leases excluded). The impermissible-income screen (< 5% of revenue) is common to all of these standards and is shown in the ratio table above. Dow Jones and S&P apply their limit against a trailing 24–36-month average market cap; MSCI and FTSE add entry/exit buffers and a receivables screen. Full methodology →
Scholars' & Screeners' Positions
Published positions, cited as stated. Screeners can reach different conclusions on the same company because of ratio timing and methodology differences — we report the disagreement rather than flatten it.
Musaffa
Public page rates the stock doubtful (checked 2026-06-15).
Source →SP Funds S&P 500 Sharia ETF (SPUS)
Bulk research pass — verify current SPUS schedule of investments before citing as held or excluded (reference SOI dated 2026-02-28).
Source →Wahed FTSE USA Shariah ETF (HLAL)
Bulk research pass — verify current HLAL holdings before citing as held or excluded (reference list 2026-06-05).
Source →
Purification
Even Shariah-compliant companies typically earn a small amount of incidental interest on corporate cash. The standard practice is to purify: donate the proportion of your dividends (and, per some scholars, capital gains) attributable to impermissible income. Our purification calculator automates the math from your holding and the company's disclosed figures.
Purification calculatorKeep your portfolio halal
A pass today isn't a pass forever — ratios drift across thresholds between filings. A halal screener monitors holdings continuously.
Related guides
Consider Consulting an Islamic Scholar
Major whether Lululemon Athletica Inc. is halal decisions often involve nuances that vary by scholarly opinion and personal circumstance. While HalalWallet provides educational comparisons and tools, we are not scholars or financial advisors. For personal guidance on Shariah compliance, consider speaking with a qualified Islamic scholar, your local imam, or a Shariah-certified financial advisor familiar with your situation.
Important: HalalWallet is an educational comparison platform. We do not provide financial, legal, or religious advice.
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Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-06-01
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