Barclays Has Lowered Expectations for lululemon athletica (NASDAQ:LULU) Stock Price

Key Points

• Barclays cut its lululemon price target from $113 to $95 and maintained an “equal weight” rating, implying roughly 5.7% downside from the stock’s cited price.
• Analyst sentiment is broadly cautious: MarketBeat reports an average rating of “Reduce” and a consensus target of $135.19, while most analysts rate the shares Hold, with additional target cuts from Evercore and Daiwa.
• Lululemon’s latest quarter included an EPS beat but a revenue miss, with sales down 4.3% year over year. Shares fell to $100.73, near their 52-week low, amid reduced fiscal 2026 guidance and concerns about weakening sales in North America and China.

lululemon athletica (NASDAQ:LULU - Get Free Report) had its price objective cut by stock analysts at Barclays from $113.00 to $95.00 in a research report issued on Friday, Benzinga reports. The firm presently has an "equal weight" rating on the apparel retailer's stock. Barclays's price objective would indicate a potential downside of 5.69% from the stock's current price.

Several other brokerages have also weighed in on LULU. BTIG Research restated a "neutral" rating on shares of lululemon athletica in a research note on Friday. Evercore dropped their price objective on lululemon athletica from $175.00 to $130.00 in a report on Wednesday, June 3rd. Zacks Research upgraded shares of lululemon athletica from a "strong sell" rating to a "hold" rating in a research report on Wednesday, August 19th. Daiwa Securities Group dropped their price target on lululemon athletica from $173.00 to $120.00 and set a "neutral" rating for the company in a research report on Tuesday, June 9th. Finally, KeyCorp reaffirmed a "sector weight" rating on shares of lululemon athletica in a research report on Friday. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, twenty-five have issued a Hold rating and five have issued a Sell rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Reduce" and a consensus target price of $135.19.

lululemon athletica Stock Performance

Shares of LULU traded down $21.04 during mid-day trading on Friday, hitting $100.73. 29,732,567 shares of the stock were exchanged, compared to its average volume of 3,370,388. The company has a market cap of $11.95 billion, a PE ratio of 8.13, a price-to-earnings-growth ratio of 2.50 and a beta of 0.87. The firm has a 50-day moving average of $118.76 and a two-hundred day moving average of $136.61. lululemon athletica has a 52-week low of $97.99 and a 52-week high of $225.98.

lululemon athletica (NASDAQ:LULU - Get Free Report) last announced its earnings results on Thursday, September 3rd. The apparel retailer reported $2.92 earnings per share for the quarter, beating the consensus estimate of $1.79 by $1.13. The business had revenue of $2.42 billion for the quarter, compared to the consensus estimate of $2.46 billion. lululemon athletica had a net margin of 13.03% and a return on equity of 31.26%. The business's revenue for the quarter was down 4.3% on a year-over-year basis. During the same quarter in the prior year, the firm posted $3.10 earnings per share. lululemon athletica has set its FY 2026 guidance at 9.480-9.730 EPS and its Q3 2026 guidance at 0.930-0.980 EPS. On average, sell-side analysts predict that lululemon athletica will post 10.93 EPS for the current year.

Insider Buying and Selling

In other news, Director Charles Bergh acquired 4,275 shares of lululemon athletica stock in a transaction that occurred on Monday, June 15th. The shares were purchased at an average cost of $117.05 per share, for a total transaction of $500,388.75. Following the completion of the purchase, the director directly owned 10,365 shares of the company's stock, valued at $1,213,223.25. This trade represents a 70.20% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. 0.54% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in LULU. California State Teachers Retirement System boosted its position in shares of lululemon athletica by 10,065.8% during the second quarter. California State Teachers Retirement System now owns 17,180,893 shares of the apparel retailer's stock worth $1,961,714,000 after buying an additional 17,011,886 shares during the period. BlackRock Inc. bought a new stake in shares of lululemon athletica during the 2nd quarter worth about $1,010,565,000. Flossbach Von Storch SE acquired a new stake in lululemon athletica in the second quarter worth approximately $207,392,000. Norges Bank bought a new position in lululemon athletica during the 4th quarter valued at $362,598,000. Finally, Boston Partners bought a new stake in shares of lululemon athletica in the 4th quarter worth $304,875,000. 85.20% of the stock is currently owned by institutional investors.

Key Headlines Impacting lululemon athletica

Here are the key news stories impacting lululemon athletica this week:

• Positive Sentiment: Adjusted second-quarter EPS of $2.92 exceeded the $1.79 consensus estimate. However, the beat was substantially aided by $134.5 million in tariff refunds, which contributed approximately $0.86 to diluted EPS, making the result less indicative of underlying profitability. lululemon Q2 Earnings Beat on Tariff Refunds Despite Revenue Miss
• Positive Sentiment: The company repurchased approximately $330 million of stock during the quarter, while some investors—including Michael Burry—have viewed the selloff as a potential long-term buying opportunity. Lululemon Sinks After Second Guidance Cut
• Neutral Sentiment: Analyst views became more cautious but remained mixed. Stifel downgraded its target to $100 with a hold rating, while Bank of America, UBS, Baird and Telsey retained neutral or market-perform views with targets above the recent trading level. Lululemon’s Disappointing Sales Outlook
• Negative Sentiment: Second-quarter revenue fell 4% year over year to $2.416 billion, missing the $2.46 billion consensus estimate, while comparable sales declined 9%. Americas revenue dropped 8% and comparable sales fell 12%; China revenue also weakened, suggesting pressure in both the core market and an important international region. Lululemon Shares Tumble on Weak China, North America Sales
• Negative Sentiment: LULU reduced fiscal 2026 revenue guidance to $10.35 billion–$10.50 billion and EPS guidance to $9.48–$9.73, its second annual forecast cut this year. Third-quarter guidance also implies sharply lower revenue and EPS than analysts expected, reinforcing fears that the slowdown will persist. Lululemon Forecast Cut Hits Shares
• Negative Sentiment: Several firms cut their targets further: Morgan Stanley lowered its target to $83 and assigned underweight, Truist reduced its target to $82 and reaffirmed sell, and JPMorgan cut its target to $95. These revisions reflect concerns about traffic, uneven product acceptance, competition and weakening margins.

lululemon athletica Company Profile

lululemon athletica inc. is a design-focused athletic apparel company known for performance-oriented apparel, footwear and accessories. The company's product portfolio centers on technical apparel for yoga, running, training and everyday active lifestyle use and includes tops, bottoms, outerwear, underwear, bags and a growing footwear assortment. lululemon emphasizes fabric science and product innovation, marketing garments that blend performance features with lifestyle styling.

Products are developed in-house and produced through a network of third-party manufacturers.

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