lululemon athletica (NASDAQ:LULU) Receives "Sector Weight" Rating from KeyCorp

Key Points

• KeyCorp reaffirmed its “sector weight” rating on lululemon, while the broader analyst consensus remained cautious with an average “Reduce” rating and a $144.96 target price.
• LULU shares fell 17.2% to open at $100.77, near their 12-month low, following disappointing results and concerns about slowing growth.
• Although quarterly EPS of $2.92 exceeded estimates, revenue declined 4.3% year over year to $2.42 billion, and the company cut its fiscal 2026 revenue and EPS guidance.

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

Several other equities research analysts also recently weighed in on the stock. Freedom Capital raised shares of lululemon athletica from a "strong sell" rating to a "hold" rating in a research note on Friday, June 5th. Rothschild & Co Redburn cut their price objective on lululemon athletica from $160.00 to $110.00 and set a "sell" rating for the company in a research report on Tuesday, June 16th. Jefferies Financial Group lowered their price objective on shares of lululemon athletica from $145.00 to $115.00 and set a "hold" rating on the stock in a research note on Friday, June 5th. Sanford C. Bernstein reduced their price objective on shares of lululemon athletica from $145.00 to $115.00 and set a "market perform" rating on the stock in a research note on Friday. Finally, Robert W. Baird dropped their price target on lululemon athletica from $170.00 to $140.00 and set a "neutral" rating for the company in a research note on Friday, June 5th. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, twenty-five have given a Hold rating and five have issued a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Reduce" and a consensus target price of $144.96.

lululemon athletica Trading Down 17.2%

Shares of LULU stock opened at $100.77 on Friday. The stock has a 50 day moving average of $118.76 and a 200 day moving average of $136.61. lululemon athletica has a twelve month low of $97.95 and a twelve month high of $225.98. The stock has a market cap of $11.96 billion, a P/E ratio of 7.92, a P/E/G ratio of 2.50 and a beta of 0.87.

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, topping the consensus estimate of $1.79 by $1.13. lululemon athletica had a return on equity of 31.26% and a net margin of 13.03%.The company had revenue of $2.42 billion during the quarter, compared to analyst estimates of $2.46 billion. During the same period in the previous year, the business earned $3.10 EPS. lululemon athletica'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. On average, research analysts predict that lululemon athletica will post 10.93 earnings per share for the current fiscal year.

Insider Buying and Selling at lululemon athletica

In other news, Director Charles Bergh bought 4,275 shares of the stock in a transaction on Monday, June 15th. The stock was acquired at an average price of $117.05 per share, with a total value of $500,388.75. Following the acquisition, the director directly owned 10,365 shares in the company, valued at approximately $1,213,223.25. This trade represents a 70.20% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.54% of the stock is currently owned by company insiders.

Institutional Trading of lululemon athletica

Large investors have recently bought and sold shares of the business. Brighton Jones LLC bought a new stake in lululemon athletica in the 4th quarter valued at about $429,000. NewEdge Advisors LLC lifted its stake in shares of lululemon athletica by 5.1% in the first quarter. NewEdge Advisors LLC now owns 3,848 shares of the apparel retailer's stock valued at $1,089,000 after buying an additional 186 shares in the last quarter. Glenview Trust co raised its holdings in shares of lululemon athletica by 39.9% in the 2nd quarter. Glenview Trust co now owns 996 shares of the apparel retailer's stock worth $237,000 after acquiring an additional 284 shares during the last quarter. Diversify Advisory Services LLC bought a new position in lululemon athletica in the 2nd quarter valued at about $508,000. Finally, Raymond James Financial Inc. boosted its stake in lululemon athletica by 10.7% during the 2nd quarter. Raymond James Financial Inc. now owns 112,632 shares of the apparel retailer's stock valued at $26,759,000 after purchasing an additional 10,891 shares during the last quarter. 85.20% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting lululemon athletica

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

• Positive Sentiment: Second-quarter diluted EPS of $2.92 exceeded the $1.79 analyst consensus. However, the beat was substantially supported by $134.5 million in tariff refunds and related interest, which added approximately $0.86 per share. lululemon Second Quarter Fiscal 2026 Results
• Positive Sentiment: International revenue increased 4%, and lululemon repurchased $330 million of stock during the quarter, providing limited support as the company works to restore growth.
• Neutral Sentiment: Heidi O’Neill is scheduled to become CEO next week. Investors will look for her strategy on product development, marketing and the company’s response to intensifying competition. Lululemon forecast cut underscores challenge for next CEO
• Neutral Sentiment: Needham reaffirmed its “hold” rating, while BTIG maintained “neutral,” indicating that analysts remain cautious rather than broadly bullish.
• Negative Sentiment: Second-quarter revenue fell 4% year over year to $2.416 billion, below the $2.458 billion consensus estimate. Comparable sales declined 9% overall, or 10% in constant currency, while Americas revenue dropped 8%. Net income also fell to $329.2 million from $370.9 million. Lululemon stock plunges on disappointing earnings and outlook
• Negative Sentiment: Fiscal 2026 revenue guidance was reduced to $10.35 billion–$10.50 billion from $11.00 billion–$11.15 billion, and EPS guidance was cut to $9.48–$9.73. Third-quarter guidance of $0.93–$0.98 EPS and roughly $2.3 billion in revenue was also well below analyst expectations.
• Negative Sentiment: JPMorgan lowered its price target from $154 to $95 and shifted to “neutral”; Bernstein cut its target from $145 to $115 and moved to “market perform.” The target reductions reflect expectations for slower growth and pressure on the brand’s turnaround. Lululemon shares plunge after outlook cut

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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