What is Zacks Research's Forecast for LULU Q3 Earnings?

Key Points

• Zacks Research forecasts Lululemon’s Q3 2027 earnings at $0.96 per share and maintains a “Strong Sell” rating. Its full-year 2027 estimate is $9.64 per share, compared with the current consensus estimate of $9.55 for the current fiscal year.
• Lululemon’s latest quarter beat earnings expectations with EPS of $2.92 versus $1.79 expected, but revenue of $2.42 billion missed forecasts and fell 4.3% year over year. The company also lowered its fiscal 2026 outlook, reflecting continued demand and regional weakness.
• Investor sentiment remains cautious: the stock has fallen near its 52-week low, while analysts’ consensus rating is “Reduce” with an average price target of $110.57; 85.2% of shares are held by institutional investors.

lululemon athletica inc. (NASDAQ:LULU - Free Report) - Zacks Research issued their Q3 2027 earnings estimates for lululemon athletica in a research report issued on Thursday, September 17th. Zacks Research analyst Team forecasts that the apparel retailer will post earnings of $0.96 per share for the quarter. Zacks Research has a "Strong Sell" rating on the stock. The consensus estimate for lululemon athletica's current full-year earnings is $9.55 per share. Zacks Research also issued estimates for lululemon athletica's Q4 2027 earnings at $4.06 EPS, FY2027 earnings at $9.64 EPS, Q3 2028 earnings at $1.23 EPS, Q4 2028 earnings at $4.23 EPS, FY2028 earnings at $9.01 EPS, Q1 2029 earnings at $1.76 EPS, Q2 2029 earnings at $2.63 EPS and FY2029 earnings at $10.18 EPS.

lululemon athletica (NASDAQ:LULU - Get Free Report) last released its quarterly earnings results on Thursday, September 3rd. The apparel retailer reported $2.92 earnings per share for the quarter, beating analysts' consensus estimates of $1.79 by $1.13. The business had revenue of $2.42 billion for the quarter, compared to the consensus estimate of $2.46 billion. lululemon athletica had a net margin of 12.78% and a return on equity of 27.69%. lululemon athletica's revenue for the quarter was down 4.3% on a year-over-year basis. During the same quarter last year, the firm 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.

Several other analysts also recently issued reports on the company. Truist Financial reiterated a "sell" rating and set a $82.00 price target (down from $94.00) on shares of lululemon athletica in a research note on Friday, September 4th. Wells Fargo & Company reduced their target price on lululemon athletica from $105.00 to $95.00 and set an "equal weight" rating for the company in a report on Friday, September 4th. BTIG Research reaffirmed a "neutral" rating on shares of lululemon athletica in a research report on Friday, September 4th. Piper Sandler lowered their price target on lululemon athletica from $110.00 to $80.00 and set a "neutral" rating on the stock in a report on Friday, September 4th. Finally, Morgan Stanley dropped their price target on shares of lululemon athletica from $93.00 to $83.00 and set an "underweight" rating on the stock in a research report on Friday, September 4th. One analyst has rated the stock with a Strong Buy rating, twenty-one have given a Hold rating and seven have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Reduce" and an average target price of $110.57.

lululemon athletica Price Performance

NASDAQ LULU opened at $98.06 on Monday. lululemon athletica has a fifty-two week low of $95.35 and a fifty-two week high of $225.98. The stock's 50-day moving average is $115.01 and its two-hundred day moving average is $130.26. The firm has a market cap of $11.36 billion, a P/E ratio of 8.03, a price-to-earnings-growth ratio of 2.34 and a beta of 0.87.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of LULU. 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 worth $47,203,000 after purchasing an additional 28,643 shares during the last quarter. MUFG Securities EMEA plc increased its stake in shares of lululemon athletica by 9,695.1% in the fourth quarter. MUFG Securities EMEA plc now owns 204,424 shares of the apparel retailer's stock valued at $42,481,000 after buying an additional 202,337 shares in the last quarter. United Super Pty Ltd in its capacity as Trustee for the Construction & Building Unions Superannuation Fund bought a new position in shares of lululemon athletica in the fourth quarter valued at about $13,989,000. OP Asset Management Ltd bought a new position in shares of lululemon athletica in the first quarter valued at about $1,664,000. Finally, Flossbach Von Storch SE acquired a new position in lululemon athletica during the 2nd quarter worth about $207,392,000. 85.20% of the stock is owned by institutional investors.

Trending Headlines about lululemon athletica

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

• Positive Sentiment: Lululemon’s product strategy refresh—including new styles, faster replenishment and greater brand investment—could support a recovery in full-price sales if the initiatives improve product appeal and reduce markdowns. Lululemon Refreshes Product Strategy: Will New Styles Click?
• Positive Sentiment: International expansion remains a potential long-term growth engine, offering the company an opportunity to offset weakness in North America through new markets and stores. International Growth Could Support Lululemon
• Positive Sentiment: Nike and Lululemon agreed to end their patent dispute involving Mirror home-workout technology, removing a litigation overhang, although the settlement does not directly improve operating results. Nike and Lululemon End Mirror Patent Dispute
• Neutral Sentiment: Analyst estimates were mixed: Zacks Research raised its Q2 2028 EPS forecast to $1.98 from $1.92 but lowered its Q1 2028 estimate to $1.58 from $1.72. The firm maintained a “Hold” rating. Lululemon Analyst Estimate Changes
• Negative Sentiment: Recent quarterly results showed earnings helped by tariff refunds, but revenue fell short of expectations, declined year over year and was accompanied by weaker regional demand and lower full-year guidance. Investors may view the profit benefit as temporary. LULU Q2 Earnings Show Tariff Refunds but Demand Remains Under Pressure
• Negative Sentiment: Lululemon has cut its fiscal 2026 revenue and profit outlook for the second time this year, intensifying concerns about demand, competition and execution as new CEO Heidi O’Neill begins her tenure. Lululemon Cuts Its Outlook Again
• Negative Sentiment: Women’s leggings sales reportedly fell about 20% in fiscal Q2, while analysts point to slowing growth, margin pressure and product-reset risks. These issues have contributed to the stock’s sharp decline and prompted some brokerages to assign an average “Reduce” rating. Lululemon Leggings Sales Decline
• Negative Sentiment: Several law firms have announced investigations into potential securities-law claims related to investor losses. These announcements can add reputational and legal uncertainty, although they do not establish wrongdoing. Lululemon Securities Investigation

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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