lululemon athletica (NASDAQ:LULU) Updates FY 2026 Earnings Guidance

Key Points

• Lululemon cut its FY 2026 outlook, projecting EPS of $9.48–$9.73 and revenue of roughly $10.35–$10.50 billion, well below consensus estimates of $12.35 EPS and $11.5 billion in revenue.
• Second-quarter EPS of $2.92 beat analysts’ $1.79 estimate, but revenue fell 4.3% year over year to $2.42 billion, with comparable sales declining 9% and weakness concentrated in the Americas.
• Analysts have broadly turned more cautious, lowering price targets and assigning the stock an average “Reduce” rating with a $148.38 target; LULU recently traded near $121.77.

lululemon athletica (NASDAQ:LULU - Get Free Report) updated its FY 2026 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 9.480-9.730 for the period, compared to the consensus earnings per share estimate of 12.350. The company issued revenue guidance of $10.4 billion-$10.5 billion, compared to the consensus revenue estimate of $11.5 billion. lululemon athletica also updated its Q3 2026 guidance to 0.930-0.980 EPS.

Analysts Set New Price Targets

Several analysts have recently commented on the stock. The Goldman Sachs Group decreased their price target on shares of lululemon athletica from $177.00 to $122.00 and set a "neutral" rating on the stock in a research note on Friday, June 5th. BNP Paribas Exane lowered lululemon athletica from a "neutral" rating to an "underperform" rating and set a $88.00 price objective for the company. in a research report on Friday, June 5th. UBS Group decreased their price objective on lululemon athletica from $124.00 to $120.00 and set a "neutral" rating for the company in a report on Tuesday, August 25th. Rothschild & Co Redburn dropped their target price on lululemon athletica from $160.00 to $110.00 and set a "sell" rating on the stock in a report on Tuesday, June 16th. Finally, Deutsche Bank Aktiengesellschaft lowered their price objective on shares of lululemon athletica from $171.00 to $127.00 and set a "hold" rating on the stock in a research note on Monday, June 8th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, twenty-five have issued a Hold rating and five have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Reduce" and an average price target of $148.38.

lululemon athletica Price Performance

LULU traded up $1.70 on Thursday, hitting $121.77. 15,839,498 shares of the stock were exchanged, compared to its average volume of 3,211,143. The business has a 50-day moving average of $118.56 and a two-hundred day moving average of $137.00. The firm has a market capitalization of $14.45 billion, a price-to-earnings ratio of 9.83, a PEG ratio of 2.46 and a beta of 0.87. lululemon athletica has a 12 month low of $104.44 and a 12 month high of $225.98.

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. The business had revenue of $2.42 billion for the quarter, compared to analyst estimates of $2.46 billion. lululemon athletica had a return on equity of 31.26% and a net margin of 13.03%.lululemon athletica's revenue was down 4.3% compared to the same quarter last year. During the same period last year, the firm posted $3.10 earnings per share. 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. Equities research analysts expect that lululemon athletica will post 10.93 earnings per share for the current fiscal year.

Insider Transactions at lululemon athletica

In other news, Director Charles Bergh purchased 4,275 shares of the company's stock in a transaction that occurred on Monday, June 15th. The shares were acquired at an average cost of $117.05 per share, with a total value of $500,388.75. Following the purchase, the director owned 10,365 shares in the company, valued at $1,213,223.25. This represents a 70.20% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 0.54% of the stock is currently owned by corporate insiders.

lululemon athletica News Summary

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

• Positive Sentiment: Lululemon reported diluted second-quarter EPS of $2.92, well above the $1.79 analyst consensus. The company also repurchased 2.7 million shares for $330 million, while international revenue increased 4%. Lululemon Second Quarter Fiscal 2026 Results
• Positive Sentiment: Investor Michael Burry expressed support for LULU ahead of the earnings release, arguing that the shareholder base has substantially changed. Recent insider purchases may also provide a modest confidence signal, although they are not a fundamental catalyst. Michael Burry on Lululemon Shareholder Base
• Neutral Sentiment: Heidi O’Neill is scheduled to become CEO next week. Her leadership transition could support a longer-term turnaround, but investors will likely want evidence of improved products, marketing and execution before assigning significant value to the change. Lululemon Cuts Annual Outlook
• Negative Sentiment: Second-quarter revenue fell 4% to $2.416 billion, net income dropped to $329.2 million from $370.9 million, and comparable sales declined 9%—or 10% in constant currency. Americas revenue fell 8%, highlighting the company’s core-market weakness. Lululemon Stock Plunges on Earnings
• Negative Sentiment: Lululemon reduced its 2026 revenue forecast to $10.35 billion–$10.50 billion from $11.00 billion–$11.15 billion and now expects diluted EPS of $9.48–$9.73. The downgrade reinforces concerns about softening demand and intensifying competition from newer activewear brands. Lululemon Cuts Outlook Again
• Negative Sentiment: Analysts and retail commentators questioned Lululemon’s fashion assortment and said the company needs a broader product overhaul, raising doubts about how quickly the turnaround can improve sales. A $134.5 million tariff refund boosted quarterly EPS by $0.86 after tax, making underlying earnings quality less favorable. Lululemon Sales Drop Raises Turnaround Concerns

Institutional Trading of lululemon athletica

A number of large investors have recently added to or reduced their stakes in the stock. Corient Private Wealth LLC increased its holdings in lululemon athletica by 265.9% during the 4th quarter. Corient Private Wealth LLC now owns 42,985 shares of the apparel retailer's stock worth $8,933,000 after acquiring an additional 31,236 shares during the period. Blue Sparrow LLC DE bought a new position in shares of lululemon athletica during the 4th quarter valued at $11,430,000. Mercer Global Advisors Inc. ADV boosted its holdings in lululemon athletica by 18.6% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 21,142 shares of the apparel retailer's stock valued at $4,322,000 after acquiring an additional 3,313 shares during the period. Vident Advisory LLC increased its stake in shares of lululemon athletica by 293.0% in the fourth quarter. Vident Advisory LLC now owns 13,181 shares of the apparel retailer's stock worth $2,739,000 after buying an additional 9,827 shares during the period. Finally, State of Tennessee Department of Treasury increased its holdings in lululemon athletica by 26.4% during the 4th quarter. State of Tennessee Department of Treasury now owns 41,743 shares of the apparel retailer's stock valued at $8,675,000 after purchasing an additional 8,711 shares during the period. Hedge funds and other institutional investors own 85.20% of the company's stock.

lululemon athletica Company Profile

lululemon athletica inc. is a design-focused athletic apparel company known for performance-oriented apparel, footwear and accessories. The company's product portfolio centers on technical apparel for yoga, running, training and everyday active lifestyle use and includes tops, bottoms, outerwear, underwear, bags and a growing footwear assortment. lululemon emphasizes fabric science and product innovation, marketing garments that blend performance features with lifestyle styling.

Products are developed in-house and produced through a network of third-party manufacturers.

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