lululemon athletica inc. (NASDAQ:LULU) Stock Now Rated "Reduce" by Sell-Side Analysts

Key Points

• Analysts’ consensus rating is “Reduce”: Of 30 firms covering Lululemon, seven recommend selling, 22 hold, and one strongly buy; the average one-year price target is $105.26. Several brokerages recently cut their price targets.
• Latest quarterly results were mixed: earnings per share of $2.92 beat estimates of $1.79, but revenue of $2.42 billion missed expectations and fell 4.3% year over year.
• A pending investor class action alleges the company understated weakening demand before reducing guidance and its stock fell; the claims are allegations, and the lead-plaintiff deadline is January 4, 2027.

Shares of lululemon athletica inc. (NASDAQ:LULU - Get Free Report) have been given a consensus rating of "Reduce" by the thirty research firms that are covering the stock, Marketbeat.com reports. Seven analysts have rated the stock with a sell recommendation, twenty-two have given a hold recommendation and one has given a strong buy recommendation to the company. The average 1 year price target among analysts that have issued ratings on the stock in the last year is $105.26.

Several brokerages recently commented on LULU. Wells Fargo & Company dropped their price objective on lululemon athletica from $95.00 to $90.00 and set an "equal weight" rating on the stock in a research note on Monday, October 19th. Sanford C. Bernstein dropped their price objective on shares of lululemon athletica from $145.00 to $115.00 and set a "market perform" rating for the company in a report on Friday, September 4th. UBS Group cut their target price on lululemon athletica from $120.00 to $106.00 and set a "neutral" rating on the stock in a research note on Friday, September 4th. KeyCorp reissued a "sector weight" rating on shares of lululemon athletica in a research note on Friday, September 4th. Finally, Barclays reduced their price objective on shares of lululemon athletica from $113.00 to $95.00 and set an "equal weight" rating for the company in a research report on Friday, September 4th.

Key lululemon athletica News

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

• Positive Sentiment: Zacks Research upgraded LULU from “strong sell” to “hold,” a modest improvement in its rating outlook. Zacks Research rating
• Neutral Sentiment: Lululemon named Ben Hallam chief brand officer, effective November 9, and announced Emily Sunderland as chief strategy officer. The hires could reinforce brand and strategic execution, though no expected financial effects were disclosed. Leadership appointments
• Neutral Sentiment: The company unveiled its Ventscape cold-weather running vest at a trade event in China, adding a new product to its running range; sales impact is not yet known. Ventscape run vest launch
• Negative Sentiment: Several law firms publicized a pending investor class action covering purchases from March 18 to September 3, 2026. The complaint alleges Lululemon understated weakening demand before guidance reductions and a sharp stock decline; these are allegations, not established findings. The lead-plaintiff deadline is January 4, 2027. The litigation adds legal and reputational uncertainty. Investor suit details

lululemon athletica Stock Down 0.9%

Shares of lululemon athletica stock opened at $110.79 on Friday. The company has a market capitalization of $12.83 billion, a price-to-earnings ratio of 9.07, a PEG ratio of 2.57 and a beta of 0.84. lululemon athletica has a 52 week low of $90.38 and a 52 week high of $225.98. The stock's 50-day simple moving average is $102.16 and its 200-day simple moving average is $132.24.

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, topping analysts' consensus estimates of $1.79 by $1.13. lululemon athletica had a return on equity of 27.69% and a net margin of 12.78%. The company had revenue of $2.42 billion for the quarter, compared to analyst estimates of $2.46 billion. During the same quarter in the previous year, the company posted $3.10 earnings per share. The firm's revenue for the quarter was down 4.3% compared to the same quarter last year. 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, equities analysts expect that lululemon athletica will post 9.55 earnings per share for the current year.

Hedge Funds Weigh In On lululemon athletica

Institutional investors and hedge funds have recently modified their holdings of the business. Baird Financial Group Inc. boosted its position in lululemon athletica by 7.4% during the 2nd quarter. Baird Financial Group Inc. now owns 413,412 shares of the apparel retailer's stock worth $47,203,000 after acquiring an additional 28,643 shares during the period. Envestnet Asset Management Inc. grew its position in lululemon athletica by 37.1% in the 2nd quarter. Envestnet Asset Management Inc. now owns 66,957 shares of the apparel retailer's stock valued at $7,645,000 after purchasing an additional 18,123 shares during the period. Flossbach Von Storch SE purchased a new position in shares of lululemon athletica during the 2nd quarter valued at $207,392,000. Cibc World Market Inc. purchased a new stake in lululemon athletica in the second quarter worth $40,646,000. Finally, Deutsche Bank AG purchased a new stake in shares of lululemon athletica in the 2nd quarter worth $80,580,000. 85.20% of the stock is currently owned by institutional investors and hedge funds.

lululemon athletica Company Profile

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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