lululemon athletica (NASDAQ:LULU) Sets New 52-Week Low After Analyst Downgrade

Key Points

• lululemon athletica hit a new 52-week low after BofA cut its price target to $140 from $175 and kept a neutral rating. The stock fell as low as $109.36 amid heavy trading.
• Several other major brokerages also lowered their price targets, with many maintaining hold/neutral views. The consensus rating remains Hold, though the average price target has been reset lower.
• Despite the selloff, lululemon recently beat first-quarter EPS and revenue estimates, but it also cut FY2026 guidance and warned of weaker Q2 results due to tariff costs, markdown pressure, and softer traffic.

lululemon athletica inc. (NASDAQ:LULU - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Saturday after BofA lowered their price target on the stock from $175.00 to $140.00. BofA currently has a neutral rating on the stock. lululemon athletica traded as low as $109.36 and last traded at $114.23, with a volume of 16174800 shares changing hands. The stock had previously closed at $124.92.

Several other brokerages have also recently weighed in on LULU. Barclays dropped their price target on shares of lululemon athletica from $161.00 to $113.00 and set an "equal weight" rating for the company in a research report on Friday. Evercore dropped their price target on shares of lululemon athletica from $175.00 to $130.00 in a research report on Wednesday. Wells Fargo & Company dropped their price target on shares of lululemon athletica from $150.00 to $110.00 and set an "equal weight" rating for the company in a research report on Friday. Piper Sandler dropped their price target on shares of lululemon athletica from $130.00 to $110.00 and set a "neutral" rating for the company in a research report on Friday. Finally, JPMorgan Chase & Co. dropped their price target on shares of lululemon athletica from $173.00 to $149.00 and set a "neutral" rating for the company in a research report on Friday. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, twenty-eight have given a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, lululemon athletica presently has an average rating of "Hold" and a consensus price target of $165.13.

Insiders Place Their Bets

In related news, Director Charles V. Bergh acquired 6,090 shares of the firm's stock in a transaction on Friday, March 20th. The stock was acquired at an average cost of $164.20 per share, for a total transaction of $999,978.00. Following the acquisition, the director owned 6,090 shares of the company's stock, valued at $999,978. This trade represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Andre Maestrini acquired 3,275 shares of the firm's stock in a transaction on Wednesday, April 1st. The stock was bought at an average price of $151.02 per share, with a total value of $494,590.50. Following the completion of the acquisition, the chief executive officer directly owned 34,551 shares in the company, valued at approximately $5,217,892.02. This represents a 10.47% increase in their position. The SEC filing for this purchase provides additional information. Company insiders own 0.54% of the company's stock.

lululemon athletica News Summary

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

• Positive Sentiment: lululemon posted first-quarter EPS of $1.69 and revenue of $2.47 billion, both slightly ahead of Wall Street estimates, showing the business is still generating profits and growing revenue overall.
• Positive Sentiment: Management said international growth remains a bright spot, with China and other overseas markets helping offset some of the weakness in North America.
• Neutral Sentiment: Several analysts reiterated neutral/hold views while cutting price targets, signaling that expectations have been reset but not all firms are calling for a deeper selloff.
• Neutral Sentiment: New commentary suggests valuation may now look more attractive after the sharp drop, but investors are waiting for proof that the turnaround is working.
• Negative Sentiment: lululemon cut its FY2026 revenue and profit guidance and issued weaker-than-expected Q2 guidance, citing ongoing headwinds, tariff costs, markdown pressure, and softer traffic.
• Negative Sentiment: Multiple brokerages lowered targets on LULU, including BofA, JPMorgan, Barclays, Wells Fargo, Piper Sandler, and others, with some downgrading the stock to hold/neutral or underperform.
• Negative Sentiment: Articles cited fading brand momentum, product misfires, and negative social/media commentary, reinforcing concerns that lululemon’s core U.S. business is losing steam ahead of the incoming CEO transition.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the stock. NewEdge Advisors LLC raised its holdings in lululemon athletica by 41.8% in the 1st quarter. NewEdge Advisors LLC now owns 14,922 shares of the apparel retailer's stock worth $2,285,000 after purchasing an additional 4,400 shares in the last quarter. Caerus Investment Advisors LLC bought a new position in shares of lululemon athletica in the 1st quarter worth about $294,000. Financial Solutions Advisory Group Inc. bought a new position in shares of lululemon athletica in the 1st quarter worth about $338,000. Asset Dedication LLC increased its stake in shares of lululemon athletica by 15.1% in the 1st quarter. Asset Dedication LLC now owns 3,794 shares of the apparel retailer's stock worth $581,000 after acquiring an additional 499 shares in the last quarter. Finally, Groupama Asset Managment increased its stake in shares of lululemon athletica by 47.0% in the 1st quarter. Groupama Asset Managment now owns 1,751 shares of the apparel retailer's stock worth $268,000 after acquiring an additional 560 shares in the last quarter. 85.20% of the stock is currently owned by institutional investors.

lululemon athletica Trading Down 8.6%

The company's 50 day moving average is $141.19 and its 200-day moving average is $169.96. The company has a market capitalization of $13.79 billion, a P/E ratio of 9.22, a price-to-earnings-growth ratio of 3.85 and a beta of 0.87.

lululemon athletica (NASDAQ:LULU - Get Free Report) last issued its quarterly earnings results on Thursday, June 4th. The apparel retailer reported $1.69 EPS for the quarter, topping analysts' consensus estimates of $1.67 by $0.02. lululemon athletica had a return on equity of 31.61% and a net margin of 13.03%.The firm had revenue of $2.47 billion for the quarter, compared to analysts' expectations of $2.44 billion. During the same period in the previous year, the firm posted $2.60 EPS. The business's revenue for the quarter was up 4.3% compared to the same quarter last year. lululemon athletica has set its FY 2026 guidance at 10.950-11.150 EPS and its Q2 2026 guidance at 1.760-1.810 EPS. Analysts predict that lululemon athletica inc. will post 12.26 EPS for the current fiscal year.

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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