Zacks Research Upgrades lululemon athletica (NASDAQ:LULU) to Hold

Key Points

• Zacks Research upgraded lululemon from “strong sell” to “hold.” Analyst sentiment remains cautious overall: MarketBeat’s consensus rating is “Reduce,” with a $105.26 average price target.
• Several brokerages recently cut their price targets, including JPMorgan to $95, Piper Sandler to $80, and BMO Capital Markets, which initiated coverage with an “underperform” rating and a $70 target.
• In its latest reported quarter, lululemon beat earnings expectations with EPS of $2.92 versus $1.79 expected, but revenue missed forecasts at $2.42 billion and declined 4.3% year over year.

lululemon athletica (NASDAQ:LULU - Get Free Report) was upgraded by Zacks Research from a "strong sell" rating to a "hold" rating in a report issued on Tuesday, Zacks reports.

A number of other brokerages have also weighed in on LULU. Barclays lowered their price objective on lululemon athletica from $113.00 to $95.00 and set an "equal weight" rating on the stock in a report on Friday, September 4th. JPMorgan Chase & Co. reduced their price target on lululemon athletica from $154.00 to $95.00 and set a "neutral" rating for the company in a report on Friday, September 4th. Piper Sandler decreased their price target on lululemon athletica from $110.00 to $80.00 and set a "neutral" rating on the stock in a research note on Friday, September 4th. BMO Capital Markets started coverage on lululemon athletica in a report on Wednesday, September 9th. They set an "underperform" rating and a $70.00 price objective on the stock. Finally, BTIG Research reiterated a "neutral" rating on shares of lululemon athletica in a research report on Friday, September 4th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Hold rating and seven have given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Reduce" and a consensus price target of $105.26.

lululemon athletica Stock Performance

Shares of LULU stock opened at $112.06 on Tuesday. lululemon athletica has a 1 year low of $90.38 and a 1 year high of $225.98. The stock's 50-day moving average is $102.34 and its two-hundred day moving average is $133.08. The firm has a market cap of $12.98 billion, a price-to-earnings ratio of 9.42, a PEG ratio of 2.55 and a beta of 0.84.

lululemon athletica (NASDAQ:LULU - Get Free Report) last issued its quarterly earnings results on Thursday, September 3rd. The apparel retailer reported $2.92 earnings per share for the quarter, topping analysts' consensus estimates of $1.79 by $1.13. The firm had revenue of $2.42 billion during the quarter, compared to analysts' expectations of $2.46 billion. lululemon athletica had a net margin of 12.78% and a return on equity of 27.69%. lululemon athletica's quarterly revenue was down 4.3% compared to the same quarter last year. During the same quarter in the prior year, the business earned $3.10 EPS. 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, research analysts predict that lululemon athletica will post 9.55 EPS for the current year.

Institutional Trading of lululemon athletica

Institutional investors and hedge funds have recently modified their holdings of the business. BlackRock Inc. acquired a new position in shares of lululemon athletica during the second quarter worth about $1,010,565,000. Flossbach Von Storch SE purchased a new stake in shares of lululemon athletica during the 2nd quarter valued at about $207,392,000. Legal & General Group Plc acquired a new position in lululemon athletica during the 2nd quarter worth approximately $100,660,000. Bank of America Corp DE boosted its holdings in lululemon athletica by 17.6% in the 1st quarter. Bank of America Corp DE now owns 846,381 shares of the apparel retailer's stock worth $129,581,000 after acquiring an additional 126,917 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in lululemon athletica by 0.6% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 821,585 shares of the apparel retailer's stock worth $93,809,000 after acquiring an additional 4,901 shares during the period. Hedge funds and other institutional investors own 85.20% of the company's stock.

lululemon athletica News Summary

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

• Positive Sentiment: LULU advanced alongside other beaten-down apparel and footwear shares as a broad consumer-stock rally lifted the sector. This market-wide move was the clearest near-term positive catalyst in the reports. Article: Nike Climbs as Dow Rally Lifts Consumer Stocks
• Positive Sentiment: A Texas review found no PFAS in Lululemon products or materials, and the company reached an agreement with the state. The finding may ease product-safety and reputational concerns. Article: Lululemon settles Texas safety inquiry
• Positive Sentiment: Google is enabling Canadian shoppers to buy from Lululemon through its AI shopping experience without leaving the app, a potential additional route to customers. The reports provide no sales-impact estimates. Article: Google AI lets Canadians buy from Lululemon
• Neutral Sentiment: One article notes LULU is down 48% in 2026 and hired a new CEO in September. The steep decline underscores investor concerns, while leadership change could offer a path to a turnaround; neither report identifies a fresh operating update. Article: Lululemon Stock Is Down 48% in 2026
• Negative Sentiment: Several law firms publicized a securities class action covering investors who bought shares between March 18 and September 3, 2026. The complaint alleges Lululemon misrepresented growth and business health; these are allegations, not established findings. The litigation adds uncertainty and could weigh on sentiment. Article: Lululemon sued for securities fraud

About lululemon athletica

lululemon athletica inc. is a Vancouver, British Columbia-based designer, distributor and retailer of technical athletic apparel, footwear and accessories. The company serves consumers seeking products for yoga, running, training, fitness and other active lifestyles.

Its product portfolio includes women's and men's apparel, sports bras, leggings, tops, shorts, outerwear, footwear, bags and related accessories. lululemon sells its products through company-operated stores, e-commerce platforms and selected other channels, while also offering community-based fitness and wellness experiences connected to its brand.

Founded in 1998 by Chip Wilson, lululemon has expanded from its roots in yoga apparel into an international athletic and lifestyle brand.

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