lululemon athletica (NASDAQ:LULU) Receives "Neutral" Rating from Guggenheim

Key Points

• Guggenheim reaffirmed its “Neutral” rating on lululemon, while the broader analyst consensus stands at “Reduce,” with 25 Hold and five Sell ratings and an average price target of $144.96.
• Lululemon’s second-quarter EPS of $2.92 beat expectations, but revenue fell 4.3% year over year to $2.42 billion. The company also cut its fiscal 2026 revenue and earnings guidance, citing weaker comparable sales and softer demand, particularly in the Americas.
• The stock opened at $121.77, substantially below its 12-month high of $225.98. A director purchased roughly $500,000 of shares, while institutional investors own 85.2% of the company.

lululemon athletica (NASDAQ:LULU - Get Free Report)'s stock had its "neutral" rating restated by research analysts at Guggenheim in a research note issued to investors on Friday, Benzinga reports.

Other equities research analysts have also recently issued reports about the stock. Stifel Nicolaus reduced their target price on shares of lululemon athletica from $176.00 to $134.00 and set a "hold" rating for the company in a report on Friday, June 5th. Rothschild & Co Redburn dropped their price target on lululemon athletica from $160.00 to $110.00 and set a "sell" rating on the stock in a research report on Tuesday, June 16th. Bank of America reduced their price objective on lululemon athletica from $175.00 to $140.00 and set a "neutral" rating for the company in a research note on Friday, June 5th. Truist Financial cut lululemon athletica from a "hold" rating to a "sell" rating and decreased their price objective for the stock from $115.00 to $94.00 in a research report on Thursday, July 16th. Finally, BNP Paribas Exane downgraded lululemon athletica from a "neutral" rating to an "underperform" rating and set a $88.00 target price on the stock. in a research note on Friday, June 5th. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, twenty-five have given a Hold rating and five have given a Sell rating to the company. According to MarketBeat, lululemon athletica currently has an average rating of "Reduce" and an average target price of $144.96.

lululemon athletica Trading Up 1.4%

LULU stock opened at $121.77 on Friday. The company has a market capitalization of $14.45 billion, a P/E ratio of 9.83, a PEG ratio of 2.50 and a beta of 0.87. The business has a 50 day simple moving average of $118.76 and a 200-day simple moving average of $136.61. lululemon athletica has a twelve month low of $104.44 and a twelve month 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 EPS for the quarter, beating 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 for the quarter, compared to analysts' expectations of $2.46 billion. During the same period in the previous year, the company posted $3.10 EPS. The company's quarterly revenue 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. Research analysts predict that lululemon athletica will post 10.93 EPS for the current fiscal year.

Insiders Place Their Bets

In other lululemon athletica news, Director Charles Bergh acquired 4,275 shares of the business's stock in a transaction on Monday, June 15th. The stock was purchased at an average price of $117.05 per share, for a total transaction of $500,388.75. Following the completion of the transaction, the director owned 10,365 shares of the company's stock, valued at $1,213,223.25. The trade was a 70.20% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.54% of the stock is owned by corporate insiders.

Institutional Trading of lululemon athletica

Several hedge funds and other institutional investors have recently made changes to their positions in LULU. Swiss Life Asset Management Ltd raised its stake in shares of lululemon athletica by 53.1% during the fourth quarter. Swiss Life Asset Management Ltd now owns 68,093 shares of the apparel retailer's stock valued at $14,150,000 after purchasing an additional 23,623 shares during the period. Rayburn West Financial Services LLC purchased a new position in shares of lululemon athletica in the fourth quarter valued at $3,536,000. Gateway Investment Advisers LLC boosted its stake in shares of lululemon athletica by 60.0% in the fourth quarter. Gateway Investment Advisers LLC now owns 45,062 shares of the apparel retailer's stock valued at $9,364,000 after purchasing an additional 16,901 shares during the period. MUFG Securities EMEA plc grew its holdings in lululemon athletica by 9,695.1% during the 4th quarter. MUFG Securities EMEA plc now owns 204,424 shares of the apparel retailer's stock valued at $42,481,000 after purchasing an additional 202,337 shares in the last quarter. Finally, United Super Pty Ltd in its capacity as Trustee for the Construction & Building Unions Superannuation Fund acquired a new stake in lululemon athletica during the 4th quarter valued at $13,989,000. Institutional investors and hedge funds own 85.20% of the company's stock.

Key lululemon athletica News

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

• Positive Sentiment: Second-quarter diluted EPS was $2.92, above the $1.79 analyst consensus. However, the result benefited substantially from $134.5 million in tariff refunds and related interest, which added approximately $0.86 to EPS after tax. Second-Quarter Fiscal 2026 Results
• Positive Sentiment: International revenue increased 4%, and lululemon repurchased approximately 2.7 million shares for $330 million during the quarter, providing some support for per-share results. Lululemon Q2 Revenue Falls 4%
• Neutral Sentiment: Nike veteran Heidi O’Neill is scheduled to become CEO next week. Her appointment offers a potential catalyst, but investors are likely to remain cautious until she demonstrates progress on product, brand, and North American growth issues. Forecast Cut Underscores Challenge for Next CEO
• Negative Sentiment: Revenue declined 4% year over year to $2.416 billion, missing expectations, while comparable sales fell 9%—the company’s weakest comparable-sales performance since the Great Recession. Americas revenue dropped 8%, highlighting intensifying competition and softer consumer demand. Lululemon Stock Plunges on Earnings and Outlook
• Negative Sentiment: Lululemon cut its fiscal 2026 revenue forecast to $10.35 billion–$10.50 billion from $11.00 billion–$11.15 billion and reduced EPS guidance to $9.48–$9.73, well below the approximately $12.35 consensus. Third-quarter EPS guidance of $0.93–$0.98 also trails estimates. Lululemon Cuts Outlook Again
• Negative Sentiment: Analysts and commentators questioned whether lululemon’s product assortment—particularly its reliance on form-fitting leggings—still matches changing customer preferences. The resulting uncertainty over the brand’s ability to restore growth contributed to the sharp decline following the earnings release. Sales Drop Raises Turnaround Concerns

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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