lululemon athletica (NASDAQ:LULU) Hits New 52-Week Low - What's Next?

Key Points

• Lululemon shares hit a new 52-week low, trading as low as $90.56 amid concerns about slowing growth and the company’s reduced fiscal 2026 outlook. Quarterly revenue fell 4.3% year over year and missed analysts’ expectations.
• New CEO Heidi O’Neill is restructuring leadership, appointing Maggie Gauger as President and Chief Product Officer and Joseph Godsey as Chief Operating Officer. The changes aim to restore product momentum and improve execution, but their impact remains uncertain.
• Analyst sentiment is cautious: the consensus rating is “Reduce”, with an average price target of $106.86 after several firms cut targets and Zacks downgraded the stock to “strong sell.” Multiple law firms have also announced investigations related to the sharp share-price decline.

lululemon athletica inc. (NASDAQ:LULU - Get Free Report) shares hit a new 52-week low during mid-day trading on Thursday. The company traded as low as $90.56 and last traded at $91.88, with a volume of 4466667 shares. The stock had previously closed at $93.61.

Key lululemon athletica News

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

• Positive Sentiment: New CEO Heidi O’Neill is moving quickly to reinvigorate the brand. Lululemon appointed former Athleta CEO Maggie Gauger as President and Chief Product Officer and Joseph Godsey as Chief Operating Officer, with both newly created roles starting October 26. The changes could improve product development, execution and accountability, although searches for additional senior positions are still underway. Reuters leadership report
• Neutral Sentiment: The appointments represent O’Neill’s first major strategic move since becoming CEO and signal an effort to strengthen Lululemon’s competitive position. However, the benefits will depend on whether the new team can restore product momentum and stabilize growth. Lululemon leadership announcement
• Neutral Sentiment: The stock’s low valuation—about 7.5 times earnings based on the provided data—may attract bargain hunters. Michael Burry also said his Lululemon sale was for tax-loss harvesting rather than an abandonment of the investment thesis, though the shares remain among the market’s weakest performers. Michael Burry tax-loss sale report
• Negative Sentiment: Recent growth concerns and management’s lower fiscal 2026 outlook remain the primary pressure on LULU. The company previously reported revenue below expectations and year-over-year revenue declines, undermining confidence in its near-term earnings trajectory. Lululemon outlook report
• Negative Sentiment: Multiple law firms have announced investigations following the sharp stock decline and alleged disclosures about the company’s growth and business condition. These announcements do not establish wrongdoing, but they add reputational, legal and investor-confidence risks. LULU securities investigation report

Analysts Set New Price Targets

A number of analysts have recently issued reports on the company. The Goldman Sachs Group dropped their price target on lululemon athletica from $111.00 to $95.00 and set a "neutral" rating for the company in a research report on Friday, September 4th. Robert W. Baird decreased their price objective 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. BNP Paribas Exane lowered their target price on shares of lululemon athletica from $88.00 to $44.00 and set an "underperform" rating on the stock in a research note on Friday, September 4th. Wells Fargo & Company dropped their target price on shares of lululemon athletica from $105.00 to $95.00 and set an "equal weight" rating for the company in a research report on Friday, September 4th. Finally, Zacks Research cut shares of lululemon athletica from a "hold" rating to a "strong sell" rating in a research note on Thursday, September 17th. One analyst has rated the stock with a Strong Buy rating, twenty-one have given a Hold rating and seven have given a Sell rating to the stock. According to data from MarketBeat, lululemon athletica presently has a consensus rating of "Reduce" and an average target price of $106.86.

lululemon athletica Stock Down 1.8%

The stock has a market cap of $10.64 billion, a P/E ratio of 7.52, a P/E/G ratio of 2.23 and a beta of 0.92. The company has a 50-day simple moving average of $110.09 and a two-hundred day simple moving average of $124.04.

lululemon athletica (NASDAQ:LULU - Get Free Report) last posted its earnings results on Thursday, September 3rd. The apparel retailer reported $2.92 EPS for the quarter, topping the consensus estimate of $1.79 by $1.13. lululemon athletica had a net margin of 12.78% and a return on equity of 27.69%. The firm had revenue of $2.42 billion during the quarter, compared to analysts' expectations of $2.46 billion. During the same period last year, the company posted $3.10 EPS. The company's quarterly revenue was down 4.3% compared to the same quarter last year. 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. As a group, sell-side analysts forecast that lululemon athletica inc. will post 9.55 earnings per share for the current fiscal year.

Hedge Funds Weigh In On lululemon athletica

A number of hedge funds have recently bought and sold shares of LULU. Rexford Capital Inc. bought a new stake in lululemon athletica during the first quarter valued at about $31,000. Gould Capital LLC bought a new position in shares of lululemon athletica in the first quarter worth about $32,000. Reflection Asset Management bought a new position in shares of lululemon athletica in the fourth quarter worth about $46,000. Cassaday & Co Wealth Management LLC bought a new position in shares of lululemon athletica in the first quarter worth about $38,000. Finally, Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new position in shares of lululemon athletica during the 4th quarter valued at about $58,000. Hedge funds and other institutional investors own 85.20% of the company's stock.

About lululemon athletica

lululemon athletica inc. is a Canada-based athletic apparel, footwear and accessories company known for products designed for yoga, running, training, tennis and other active pursuits. Its offerings include leggings, shorts, tops, jackets, sports bras, footwear, bags and related accessories for women and men.

Founded in Vancouver, British Columbia, in 1998, lululemon began as a yoga-focused apparel retailer and has expanded into a broader global athletic and lifestyle brand. The company sells products through its own retail stores, e-commerce platforms and selected wholesale channels.

lululemon serves customers across North America, Asia-Pacific, Europe and other international markets.

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