lululemon athletica (NASDAQ:LULU) Downgraded to "Strong Sell" Rating by Zacks Research

Key Points

• Zacks Research downgraded lululemon athletica from “Hold” to “Strong Sell,” adding to broader analyst caution. MarketBeat reports an average “Reduce” rating and a consensus price target of $110.57.
• LULU shares opened at $98.06, near their 52-week low of $95.35 and well below the 50-day and 200-day moving averages. The stock has fallen substantially from its 52-week high of $225.98.
• Although quarterly EPS of $2.92 beat estimates, revenue of $2.42 billion missed expectations and declined 4.3% year over year, highlighting ongoing demand and growth concerns.

lululemon athletica (NASDAQ:LULU - Get Free Report) was downgraded by research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Thursday, Zacks reports. Zacks Research also issued estimates for lululemon athletica's Q1 2028 earnings at $1.58 EPS and Q2 2028 earnings at $1.98 EPS.

LULU has been the topic of several other reports. BMO Capital Markets assumed coverage on shares of lululemon athletica in a research note on Wednesday, September 9th. They set an "underperform" rating and a $70.00 target price on the stock. Deutsche Bank Aktiengesellschaft decreased their target price on lululemon athletica from $171.00 to $127.00 and set a "hold" rating for the company in a research report on Monday, June 8th. Freedom Capital upgraded lululemon athletica from a "strong sell" rating to a "hold" rating in a report on Friday, June 5th. Needham & Company LLC restated a "hold" rating on shares of lululemon athletica in a research report on Friday, September 4th. Finally, Robert W. Baird lowered their target price on lululemon athletica from $140.00 to $115.00 and set a "neutral" rating on the stock in a research note on Friday, September 4th. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Hold rating and seven have issued a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Reduce" and a consensus target price of $110.57.

lululemon athletica Trading Down 1.3%

Shares of LULU opened at $98.06 on Thursday. The business's 50-day moving average price is $115.01 and its 200 day moving average price is $130.58. The stock has a market capitalization of $11.36 billion, a P/E ratio of 8.03, a P/E/G ratio of 2.37 and a beta of 0.87. lululemon athletica has a 1-year low of $95.35 and a 1-year high of $225.98.

lululemon athletica (NASDAQ:LULU - Get Free Report) last posted its quarterly earnings data on Thursday, September 3rd. The apparel retailer reported $2.92 EPS for the quarter, beating analysts' consensus estimates of $1.79 by $1.13. The company had revenue of $2.42 billion during the quarter, compared to analyst estimates of $2.46 billion. lululemon athletica had a net margin of 12.78% and a return on equity of 27.69%. The business's quarterly revenue was down 4.3% on a year-over-year basis. During the same period in the prior year, the firm earned $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, research analysts predict that lululemon athletica will post 9.54 earnings per share for the current year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Wellington Altus USA Inc. lifted its position in shares of lululemon athletica by 770.6% in the second quarter. Wellington Altus USA Inc. now owns 949 shares of the apparel retailer's stock worth $108,000 after buying an additional 840 shares during the last quarter. Tidal Investments LLC raised its stake in shares of lululemon athletica by 32.5% in the 2nd quarter. Tidal Investments LLC now owns 43,678 shares of the apparel retailer's stock valued at $4,987,000 after acquiring an additional 10,725 shares in the last quarter. Baird Financial Group Inc. lifted its holdings in lululemon athletica by 7.4% in the 2nd quarter. Baird Financial Group Inc. now owns 413,412 shares of the apparel retailer's stock worth $47,203,000 after purchasing an additional 28,643 shares during the last quarter. Beacon Investment Advisory Services Inc. lifted its holdings in lululemon athletica by 14.1% in the 2nd quarter. Beacon Investment Advisory Services Inc. now owns 5,214 shares of the apparel retailer's stock worth $595,000 after purchasing an additional 645 shares during the last quarter. Finally, Nykredit A S bought a new stake in lululemon athletica during the second quarter worth approximately $5,956,000. Institutional investors own 85.20% of the company's stock.

Trending Headlines about lululemon athletica

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

• Positive Sentiment: Lululemon’s product strategy refresh—including new styles, faster replenishment and greater brand investment—could support a recovery in full-price sales if the initiatives improve product appeal and reduce markdowns. Lululemon Refreshes Product Strategy: Will New Styles Click?
• Positive Sentiment: International expansion remains a potential long-term growth engine, offering the company an opportunity to offset weakness in North America through new markets and stores. International Growth Could Support Lululemon
• Positive Sentiment: Nike and Lululemon agreed to end their patent dispute involving Mirror home-workout technology, removing a litigation overhang, although the settlement does not directly improve operating results. Nike and Lululemon End Mirror Patent Dispute
• Neutral Sentiment: Analyst estimates were mixed: Zacks Research raised its Q2 2028 EPS forecast to $1.98 from $1.92 but lowered its Q1 2028 estimate to $1.58 from $1.72. The firm maintained a “Hold” rating. Lululemon Analyst Estimate Changes
• Negative Sentiment: Recent quarterly results showed earnings helped by tariff refunds, but revenue fell short of expectations, declined year over year and was accompanied by weaker regional demand and lower full-year guidance. Investors may view the profit benefit as temporary. LULU Q2 Earnings Show Tariff Refunds but Demand Remains Under Pressure
• Negative Sentiment: Lululemon has cut its fiscal 2026 revenue and profit outlook for the second time this year, intensifying concerns about demand, competition and execution as new CEO Heidi O’Neill begins her tenure. Lululemon Cuts Its Outlook Again
• Negative Sentiment: Women’s leggings sales reportedly fell about 20% in fiscal Q2, while analysts point to slowing growth, margin pressure and product-reset risks. These issues have contributed to the stock’s sharp decline and prompted some brokerages to assign an average “Reduce” rating. Lululemon Leggings Sales Decline
• Negative Sentiment: Several law firms have announced investigations into potential securities-law claims related to investor losses. These announcements can add reputational and legal uncertainty, although they do not establish wrongdoing. Lululemon Securities Investigation

lululemon athletica Company Profile

lululemon athletica inc. is a designer, distributor and retailer of athletic apparel, footwear and accessories. The company's products are developed for activities including yoga, running, training, tennis and other forms of exercise, as well as everyday use. Its offerings include leggings, tops, shorts, outerwear, footwear, bags and fitness accessories for women and men.

Founded in 1998 in Vancouver, British Columbia, lululemon began as a yoga-focused apparel company and has expanded into a broader performance and lifestyle brand.

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