Needham & Company LLC Reaffirms "Hold" Rating for lululemon athletica (NASDAQ:LULU)

Key Points

• Needham & Company LLC reaffirmed its "Hold" rating on lululemon athletica, and the broader analyst consensus also remains cautious, with an average rating of Hold and an average price target of $194.95.
• lululemon reported better-than-expected quarterly results, posting EPS of $1.69 on revenue of $2.47 billion, both slightly above estimates, though revenue still rose only 4.3% year over year.
• Despite the earnings beat, the stock fell after management cut full-year guidance and issued weak Q2 outlooks, citing softer U.S. demand and higher pressures that are raising concerns about a longer turnaround.

lululemon athletica (NASDAQ:LULU - Get Free Report)'s stock had its "hold" rating reaffirmed by investment analysts at Needham & Company LLC in a report issued on Friday,Benzinga reports.

Several other equities research analysts also recently issued reports on the stock. Stifel Nicolaus lowered their price objective on shares of lululemon athletica from $210.00 to $176.00 and set a "hold" rating on the stock in a research note on Wednesday, March 18th. JPMorgan Chase & Co. lowered their price target on lululemon athletica from $196.00 to $173.00 in a research note on Wednesday, May 6th. Piper Sandler cut their price objective on lululemon athletica from $190.00 to $130.00 and set a "neutral" rating for the company in a research report on Friday, May 22nd. Robert W. Baird decreased their target price on lululemon athletica from $190.00 to $170.00 and set a "neutral" rating on the stock in a report on Thursday, May 7th. Finally, BTIG Research reiterated a "buy" rating and set a $225.00 price target on shares of lululemon athletica in a research report on Friday, May 29th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, twenty-eight have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $194.95.

lululemon athletica Stock Down 0.9%

Shares of LULU stock opened at $124.92 on Friday. lululemon athletica has a 12 month low of $116.63 and a 12 month high of $338.49. The business's 50 day moving average is $142.08 and its two-hundred day moving average is $170.35. The company has a market cap of $15.08 billion, a PE ratio of 9.39, a price-to-earnings-growth ratio of 3.89 and a beta of 0.87.

lululemon athletica (NASDAQ:LULU - Get Free Report) last announced its quarterly earnings results on Thursday, June 4th. The apparel retailer reported $1.69 EPS for the quarter, beating the consensus estimate of $1.67 by $0.02. lululemon athletica had a return on equity of 34.82% and a net margin of 14.22%.The company had revenue of $2.47 billion for the quarter, compared to the consensus estimate of $2.43 billion. During the same quarter last year, the company posted $2.60 earnings per share. The company'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. As a group, equities analysts expect that lululemon athletica will post 12.26 EPS for the current fiscal year.

Insider Activity

In other lululemon athletica news, CEO Andre Maestrini purchased 3,275 shares of the company's stock in a transaction that occurred on Wednesday, April 1st. The stock was acquired at an average cost of $151.02 per share, with a total value of $494,590.50. Following the completion of the purchase, 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 acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Charles V. Bergh acquired 6,090 shares of the business's stock in a transaction that occurred on Friday, March 20th. The stock was acquired at an average price of $164.20 per share, for a total transaction of $999,978.00. Following the completion of the acquisition, the director directly 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 SEC filing for this purchase provides additional information. Insiders own 0.54% of the company's stock.

Institutional Investors Weigh In On lululemon athletica

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Davis Investment Partners LLC increased its position in lululemon athletica by 2.9% during the 4th quarter. Davis Investment Partners LLC now owns 2,064 shares of the apparel retailer's stock worth $435,000 after buying an additional 58 shares during the period. NorthRock Partners LLC raised its stake in lululemon athletica by 4.2% in the 3rd quarter. NorthRock Partners LLC now owns 1,553 shares of the apparel retailer's stock worth $276,000 after purchasing an additional 62 shares in the last quarter. Murphy & Mullick Capital Management Corp raised its stake in lululemon athletica by 4.3% in the 1st quarter. Murphy & Mullick Capital Management Corp now owns 1,578 shares of the apparel retailer's stock worth $242,000 after purchasing an additional 65 shares in the last quarter. Cornerstone Planning Group LLC boosted its holdings in lululemon athletica by 81.9% in the 3rd quarter. Cornerstone Planning Group LLC now owns 151 shares of the apparel retailer's stock valued at $25,000 after purchasing an additional 68 shares during the period. Finally, IHT Wealth Management LLC grew its position in shares of lululemon athletica by 1.7% during the 2nd quarter. IHT Wealth Management LLC now owns 4,276 shares of the apparel retailer's stock worth $1,016,000 after purchasing an additional 73 shares in the last quarter. Institutional investors own 85.20% of the company's stock.

Key Stories Impacting lululemon athletica

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

• Positive Sentiment: lululemon beat first-quarter expectations, reporting EPS of $1.69 versus $1.67 expected and revenue of $2.47 billion versus $2.43 billion expected, showing the business is still growing despite the slowdown. lululemon athletica inc. Announces First Quarter Fiscal 2026 Results
• Positive Sentiment: International momentum, especially in China, remains a bright spot and could partially offset weakness in North America if the trend continues. Lululemon Athletica Inc (LULU) Q1 2026 Earnings Call Highlights: Navigating Challenges with Strategic Growth in China
• Neutral Sentiment: Analysts are reworking price targets after the report, with some trimming valuations but still seeing upside from the current share price. Evercore target cut
• Neutral Sentiment: Sanford C. Bernstein also lowered its target, signaling that expectations are being recalibrated rather than collapsing outright. Bernstein target cut
• Negative Sentiment: Management cut full-year guidance to reflect weaker U.S. demand and higher pressures, which is the main reason investors are selling the stock. Lululemon cuts annual forecasts amid slowing demand in US
• Negative Sentiment: Second-quarter guidance also came in well below Wall Street expectations, reinforcing concerns that the turnaround will take longer than hoped. Lululemon cuts annual outlook and issues weak Q2 guidance
• Negative Sentiment: Reuters reported the shares fell sharply in premarket trading after the weak forecasts deepened worries about slowing U.S. demand, rising competition, and tariff-related costs. Lululemon slides as bleak forecasts deepen turnaround worries

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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