Zacks Research Issues Negative Outlook for LULU Earnings

Key Points

• Zacks Research lowered its Q1 2028 EPS estimate for lululemon to $1.58 from $1.72 and maintained a “Hold” rating, reflecting a more cautious earnings outlook.
• Lululemon’s latest quarter produced a mixed result: EPS of $2.92 beat expectations, but revenue of $2.42 billion missed estimates and declined 4.3% year over year.
• Analyst sentiment remains bearish: multiple firms cut price targets, and the stock carries an average “Reduce” rating with a $111.54 consensus target price, while shares trade near their one-year low.

lululemon athletica inc. (NASDAQ:LULU - Free Report) - Investment analysts at Zacks Research decreased their Q1 2028 earnings estimates for shares of lululemon athletica in a research note issued to investors on Thursday, September 17th. Zacks Research analyst Team now anticipates that the apparel retailer will post earnings per share of $1.58 for the quarter, down from their previous forecast of $1.72. Zacks Research currently has a "Hold" rating on the stock. The consensus estimate for lululemon athletica's current full-year earnings is $9.54 per share. Zacks Research also issued estimates for lululemon athletica's Q2 2028 earnings at $1.98 EPS.

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, beating the consensus estimate of $1.79 by $1.13. lululemon athletica had a return on equity of 27.69% and a net margin of 12.78%.The business had revenue of $2.42 billion for the quarter, compared to the consensus estimate of $2.46 billion. During the same quarter in the prior year, the business earned $3.10 earnings per share. lululemon athletica's revenue for the quarter 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.

Several other equities research analysts have also weighed in on the company. Guggenheim reissued a "neutral" rating on shares of lululemon athletica in a report on Friday, September 4th. Morgan Stanley cut their target price on shares of lululemon athletica from $93.00 to $83.00 and set an "underweight" rating for the company in a research report on Friday, September 4th. Robert W. Baird lowered their price target on shares of lululemon athletica from $140.00 to $115.00 and set a "neutral" rating on the stock in a research report on Friday, September 4th. Jefferies Financial Group cut their price objective on shares of lululemon athletica from $145.00 to $115.00 and set a "hold" rating for the company in a report on Friday, June 5th. Finally, Barclays lowered their target price on shares of lululemon athletica from $113.00 to $95.00 and set an "equal weight" rating on the stock in a report on Friday, September 4th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Hold rating and six have issued a Sell rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Reduce" and a consensus target price of $111.54.

lululemon athletica Price Performance

Shares of LULU opened at $99.39 on Friday. lululemon athletica has a 1 year low of $95.35 and a 1 year high of $225.98. The stock's fifty day moving average price is $115.44 and its two-hundred day moving average price is $130.81. The firm 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.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of LULU. Wellington Altus USA Inc. increased its holdings in shares of lululemon athletica by 770.6% in the 2nd quarter. Wellington Altus USA Inc. now owns 949 shares of the apparel retailer's stock worth $108,000 after buying an additional 840 shares during the last quarter. Tidal Investments LLC increased its stake in lululemon athletica by 32.5% in the second quarter. Tidal Investments LLC now owns 43,678 shares of the apparel retailer's stock valued at $4,987,000 after acquiring an additional 10,725 shares during the last quarter. Baird Financial Group Inc. raised its position in 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 purchasing an additional 28,643 shares in the last quarter. Beacon Investment Advisory Services Inc. lifted its stake in lululemon athletica by 14.1% during the second quarter. Beacon Investment Advisory Services Inc. now owns 5,214 shares of the apparel retailer's stock worth $595,000 after purchasing an additional 645 shares during the last quarter. Finally, Nykredit A S purchased a new position in shares of lululemon athletica in the 2nd quarter worth about $5,956,000. 85.20% of the stock is currently owned by institutional investors.

lululemon athletica News Summary

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

• Positive Sentiment: Patent dispute resolved: Nike and lululemon agreed to end their patent litigation involving Mirror home-workout technology, reducing potential legal costs and uncertainty. Nike, Lululemon agree to end patent dispute over Mirror home workout tech
• Positive Sentiment: International growth remains a potential catalyst: An investment analysis argues that while LULU’s North American business is struggling, expansion into international markets and additional stores could provide a path to renewed growth through 2031. I'm Confident This Stock Will Triple by 2031. Here's the 1 Reason I'm So Sure.
• Neutral Sentiment: Valuation debate: LULU is trading near a one-year low after a steep decline, which may attract value-oriented buyers, although recent weakness raises questions about whether the stock is genuinely inexpensive.
• Negative Sentiment: Repeated outlook reductions: Management reportedly cut its fiscal 2026 revenue and profit forecasts for the second time this year, with revenue now expected at approximately $10.35 billion to $10.5 billion. The reductions came as new CEO Heidi O’Neill began her tenure. Lululemon Cuts its Outlook Again Just as a New CEO Walks through the Door
• Negative Sentiment: Weak core-category demand: Women’s leggings sales, a key LULU category, reportedly fell about 20% in fiscal second-quarter 2026, intensifying concerns about slowing demand and execution. That Dip In Lululemon Stock Looks Cheap, But What If Leggings Keep Sliding?
• Negative Sentiment: Bearish analyst sentiment: Brokerages assign LULU an average “Reduce” rating, reflecting concerns over slowing growth and lowered earnings expectations. lululemon athletica Given Average Rating of Reduce by Brokerages
• Negative Sentiment: Investor investigations announced: Bleichmar Fonti & Auld, Pomerantz and Levi & Korsinsky announced investigations into potential securities-law claims. These notices do not establish wrongdoing but add reputational and litigation risk. LULU Securities Losses 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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