lululemon athletica (NASDAQ:LULU) Earns Sell Rating from Truist Financial

Key Points

• Truist Financial reaffirmed its “sell” rating on lululemon and cut its price target to $82 from $94, implying approximately 18.5% downside from the stock’s $100.64 price.
• Analysts broadly became more cautious, with multiple firms lowering price targets; the stock carries an average “Reduce” rating and a consensus target of $141.08.
• Lululemon’s second-quarter EPS beat expectations, but revenue declined 4.3% year over year, comparable sales fell, and the company cut fiscal 2026 revenue and EPS guidance, heightening concerns about demand and competitive pressure.

lululemon athletica (NASDAQ:LULU - Get Free Report)'s stock had its "sell" rating reissued by equities research analysts at Truist Financial in a research note issued on Friday, Benzinga reports. They presently have a $82.00 price objective on the apparel retailer's stock, down from their prior price objective of $94.00. Truist Financial's price objective would suggest a potential downside of 18.52% from the stock's current price.

A number of other equities research analysts have also commented on the company. Sanford C. Bernstein decreased their price target on lululemon athletica from $145.00 to $115.00 and set a "market perform" rating on the stock in a research report on Friday. Robert W. Baird reduced their price objective on lululemon athletica from $140.00 to $115.00 and set a "neutral" rating on the stock in a research note on Friday. Needham & Company LLC restated a "hold" rating on shares of lululemon athletica in a report on Friday. Weiss Ratings downgraded shares of lululemon athletica from a "sell (d+)" rating to a "sell (d)" rating in a research report on Monday, August 24th. Finally, Daiwa Securities Group lowered their price objective on shares of lululemon athletica from $173.00 to $120.00 and set a "neutral" rating for the company in a research report on Tuesday, June 9th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, twenty-five have given a Hold rating and five have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Reduce" and an average target price of $141.08.

lululemon athletica Stock Performance

Shares of NASDAQ:LULU traded down $21.13 on Friday, hitting $100.64. The stock had a trading volume of 26,469,129 shares, compared to its average volume of 3,352,381. The firm's 50 day moving average price is $118.76 and its 200-day moving average price is $136.61. lululemon athletica has a twelve month low of $97.99 and a twelve month high of $225.98. The company has a market capitalization of $11.94 billion, a price-to-earnings ratio of 8.10, a price-to-earnings-growth ratio of 2.50 and a beta of 0.87.

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 (EPS) for the quarter, topping analysts' consensus estimates of $1.79 by $1.13. lululemon athletica had a net margin of 13.03% and a return on equity of 31.26%. The business had revenue of $2.42 billion during the quarter, compared to analysts' expectations of $2.46 billion. During the same quarter last year, the company posted $3.10 EPS. The firm's revenue for the quarter was down 4.3% on a year-over-year basis. 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. As a group, sell-side analysts predict that lululemon athletica will post 10.93 EPS for the current year.

Insider Activity at lululemon athletica

In other lululemon athletica news, Director Charles Bergh bought 4,275 shares of the firm's stock in a transaction on Monday, June 15th. The stock was purchased at an average cost of $117.05 per share, with a total value of $500,388.75. Following the completion of the purchase, the director owned 10,365 shares in the company, valued at approximately $1,213,223.25. The trade was a 70.20% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at 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 bought and sold shares of LULU. Uniplan Investment Counsel Inc. acquired a new stake in lululemon athletica in the 4th quarter valued at $26,000. Elyxium Wealth LLC bought a new position in shares of lululemon athletica in the 4th quarter valued at about $31,000. DV Equities LLC acquired a new stake in shares of lululemon athletica in the fourth quarter valued at about $31,000. GW&K Investment Management LLC increased its position in shares of lululemon athletica by 70.3% in the fourth quarter. GW&K Investment Management LLC now owns 189 shares of the apparel retailer's stock valued at $39,000 after acquiring an additional 78 shares during the last quarter. Finally, Rexford Capital Inc. acquired a new position in lululemon athletica during the first quarter valued at approximately $31,000. Institutional investors own 85.20% of the company's stock.

lululemon athletica News Roundup

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

• Positive Sentiment: Second-quarter diluted EPS of $2.92 exceeded the $1.79 consensus estimate. However, the result included approximately $134.5 million in tariff refunds, which contributed about $0.86 per share, making the beat less indicative of underlying profitability. lululemon Second Quarter Fiscal 2026 Results
• Positive Sentiment: The company repurchased 2.7 million shares for $330 million during the quarter. Investor Michael Burry also indicated continued confidence in LULU below $100, potentially providing a limited counterpoint to the broader selling pressure. Michael Burry on Lululemon
• Neutral Sentiment: Analysts broadly moved to a more cautious stance. Wells Fargo, JPMorgan, UBS, Baird, Telsey and Bernstein lowered price targets, while ratings generally remained neutral, equal weight, hold or market perform. Some revised targets still imply upside from current levels.
• Negative Sentiment: Revenue fell 4% year over year to $2.416 billion, below the $2.46 billion consensus, while comparable sales declined 9% overall and 10% on a constant-currency basis. Americas revenue dropped 8%, and China revenue also declined, signaling that international growth is no longer fully offsetting weakness in the core market. Lululemon forecast cut and CEO challenge
• Negative Sentiment: lululemon cut fiscal 2026 revenue guidance to $10.35 billion-$10.50 billion from $11.00 billion-$11.15 billion and reduced EPS guidance to $9.48-$9.73. Third-quarter revenue and EPS guidance also fell well below Wall Street expectations, raising concerns about product acceptance, store traffic, margins and competitive pressure. LULU Q2 earnings call takeaways

About lululemon athletica

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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