lululemon athletica inc. (NASDAQ:LULU) Given Average Recommendation of "Reduce" by Brokerages

Key Points

• Analysts remain cautious: Twenty-nine brokerages give lululemon an average “Reduce” recommendation, including 22 “Hold” and six “Sell” ratings. The average 12-month price target is approximately $111.54.
• Operating performance has weakened: Quarterly revenue fell 4.3% year over year to $2.42 billion, while management cut its fiscal 2026 revenue outlook to $10.35 billion–$10.5 billion and lowered earnings guidance to $9.48–$9.73 per share.
• Shares are near multiyear lows amid turnaround uncertainty: Lululemon’s stock opened at $99.39, compared with a 52-week high of $225.98, as women’s leggings sales dropped roughly 20%. New CEO Heidi O’Neill may provide strategic momentum, but investors are seeking evidence of improved growth.

lululemon athletica inc. (NASDAQ:LULU - Get Free Report) has received an average recommendation of "Reduce" from the twenty-nine ratings firms that are presently covering the company, MarketBeat.com reports. Six equities research analysts have rated the stock with a sell recommendation, twenty-two have assigned a hold recommendation and one has assigned a strong buy recommendation to the company. The average 12-month price objective among brokers that have covered the stock in the last year is $111.5417.

A number of analysts recently commented on the company. JPMorgan Chase & Co. reduced their price objective on lululemon athletica from $154.00 to $95.00 and set a "neutral" rating for the company in a research report on Friday, September 4th. Sanford C. Bernstein lowered their price objective on lululemon athletica from $145.00 to $115.00 and set a "market perform" rating on the stock in a research report on Friday, September 4th. Freedom Capital raised shares of lululemon athletica from a "strong sell" rating to a "hold" rating in a research note on Friday, June 5th. Guggenheim reaffirmed a "neutral" rating on shares of lululemon athletica in a report on Friday, September 4th. Finally, Telsey Advisory Group reduced their price objective on lululemon athletica from $122.00 to $110.00 and set a "market perform" rating on the stock in a research note on Friday, September 4th.

More lululemon athletica News

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

• Positive Sentiment: After falling to a multiyear low, LULU may attract value-oriented investors. The company’s valuation is described as more reasonable than some athletic-apparel peers, and historical declines in the stock have often created buying opportunities. The key question is whether management can stabilize growth, particularly in women’s apparel. Nike and Lululemon Both Hit Multi-Year Lows in September. Which Stock Is Best Positioned to Make a Comeback?
• Neutral Sentiment: Incoming CEO Heidi O’Neill, a former Nike executive who took over on September 8, could bring fresh strategic direction, but investors will likely want evidence of an operating turnaround before assigning significant value to the leadership change.
• Neutral Sentiment: Argus maintained a Hold rating, signaling that the stock’s lower valuation is balanced by continuing concerns about growth and earnings visibility. lululemon athletica Earns Hold Rating from Argus
• Negative Sentiment: Management cut its fiscal 2026 revenue outlook for the second time this year to approximately $10.35 billion-$10.5 billion. The latest earnings update also reduced full-year earnings guidance to $9.48-$9.73 per share, while quarterly revenue declined year over year. Lululemon Cuts its Outlook Again Just as a New CEO Walks through the Door
• Negative Sentiment: Women’s leggings sales, a core category for LULU, fell roughly 20% in fiscal second-quarter 2026. This raises concerns that the weakness is company-specific rather than solely a broad athletic-apparel slowdown. That Dip in Lululemon Stock Looks Cheap, But What If Leggings Keep Sliding?
• Negative Sentiment: Several law firms announced investigations into whether investors were harmed by the company’s repeated guidance reductions and growth issues. These notices do not establish wrongdoing, but they add legal and reputational risk. Pomerantz Investor Alert

lululemon athletica Stock Up 3.6%

Shares of NASDAQ LULU opened at $99.39 on Friday. The firm's 50-day moving average price is $115.44 and its 200-day moving average price is $130.81. lululemon athletica has a 52-week low of $95.35 and a 52-week high of $225.98. The company has a market cap of $11.51 billion, a PE ratio of 8.14, a PEG ratio of 2.29 and a beta of 0.87.

lululemon athletica (NASDAQ:LULU - Get Free Report) last released its quarterly earnings data on Thursday, September 3rd. The apparel retailer reported $2.92 earnings per share for the quarter, beating the consensus estimate of $1.79 by $1.13. lululemon athletica had a net margin of 12.78% and a return on equity of 27.69%. The firm had revenue of $2.42 billion during the quarter, compared to analysts' expectations of $2.46 billion. During the same period in the previous year, the company earned $3.10 earnings per share. The firm'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. As a group, equities research analysts anticipate that lululemon athletica will post 9.54 EPS for the current fiscal year.

Hedge Funds Weigh In On lululemon athletica

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

About lululemon athletica

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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