lululemon athletica (NASDAQ:LULU) Stock Rating Upgraded by Freedom Capital

Key Points

• Freedom Capital upgraded lululemon from “strong sell” to “hold,” but the broader analyst tone remains cautious, with the consensus still at Hold and several firms recently cutting ratings and price targets.
• The stock was down 8.6% and traded around $114.23, near its 1-year low, reflecting pressure despite a low valuation relative to prior levels.
• In its latest quarter, lululemon beat expectations slightly on EPS and revenue, but the company also issued weaker FY2026 and Q2 guidance, citing ongoing headwinds such as tariffs, markdown pressure, and softer traffic.

lululemon athletica (NASDAQ:LULU - Get Free Report) was upgraded by equities research analysts at Freedom Capital from a "strong sell" rating to a "hold" rating in a report released on Friday,Zacks.com reports.

Several other analysts have also recently weighed in on the company. Sanford C. Bernstein dropped their price objective on lululemon athletica from $170.00 to $145.00 and set a "market perform" rating for the company in a report on Wednesday. BTIG Research cut lululemon athletica from a "buy" rating to a "neutral" rating in a report on Friday. Weiss Ratings cut lululemon athletica from a "hold (c-)" rating to a "sell (d+)" rating in a report on Tuesday, March 31st. Telsey Advisory Group dropped their price objective on lululemon athletica from $175.00 to $122.00 and set a "market perform" rating for the company in a report on Friday. Finally, Wells Fargo & Company dropped their price objective on lululemon athletica from $150.00 to $110.00 and set an "equal weight" rating for the company in a report on Friday. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, twenty-nine have given a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat.com, lululemon athletica presently has a consensus rating of "Hold" and a consensus price target of $165.13.

lululemon athletica Trading Down 8.6%

Shares of NASDAQ:LULU opened at $114.23 on Friday. The stock has a market capitalization of $13.79 billion, a P/E ratio of 9.22, a P/E/G ratio of 3.85 and a beta of 0.87. lululemon athletica has a 1-year low of $109.36 and a 1-year high of $275.60. The business has a 50-day moving average price of $141.19 and a two-hundred day moving average price of $169.96.

lululemon athletica (NASDAQ:LULU - Get Free Report) last announced its quarterly earnings data on Thursday, June 4th. The apparel retailer reported $1.69 earnings per share for the quarter, topping the consensus estimate of $1.67 by $0.02. The firm had revenue of $2.47 billion during the quarter, compared to analysts' expectations of $2.44 billion. lululemon athletica had a return on equity of 31.61% and a net margin of 13.03%.The company's quarterly revenue was up 4.3% compared to the same quarter last year. During the same period in the previous year, the business posted $2.60 EPS. 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. As a group, equities analysts predict that lululemon athletica will post 12.26 EPS for the current year.

Insider Transactions at lululemon athletica

In related news, Director Charles V. Bergh bought 6,090 shares of the firm's stock in a transaction dated Friday, March 20th. The stock was bought at an average cost of $164.20 per share, for a total transaction of $999,978.00. Following the transaction, the director owned 6,090 shares of the company's stock, valued at $999,978. This represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Nicole Neuburger sold 622 shares of the business's stock in a transaction dated Wednesday, April 8th. The stock was sold at an average price of $161.00, for a total value of $100,142.00. Following the transaction, the insider owned 19,156 shares of the company's stock, valued at $3,084,116. The trade was a 3.14% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.54% of the company's stock.

Hedge Funds Weigh In On lululemon athletica

Several institutional investors and hedge funds have recently modified their holdings of LULU. Norges Bank acquired a new position in shares of lululemon athletica in the 4th quarter valued at approximately $362,598,000. Boston Partners acquired a new position in shares of lululemon athletica in the 4th quarter valued at approximately $304,875,000. Vanguard Group Inc. grew its position in shares of lululemon athletica by 3.9% in the 3rd quarter. Vanguard Group Inc. now owns 13,782,917 shares of the apparel retailer's stock valued at $2,452,394,000 after purchasing an additional 521,915 shares during the period. Invesco Ltd. grew its position in shares of lululemon athletica by 28.7% in the 3rd quarter. Invesco Ltd. now owns 2,200,552 shares of the apparel retailer's stock valued at $391,544,000 after purchasing an additional 490,127 shares during the period. Finally, Goldman Sachs Group Inc. grew its position in shares of lululemon athletica by 77.3% in the 4th quarter. Goldman Sachs Group Inc. now owns 979,054 shares of the apparel retailer's stock valued at $203,457,000 after purchasing an additional 426,860 shares during the period. 85.20% of the stock is currently owned by institutional investors and hedge funds.

Key lululemon athletica News

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.

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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