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

Key Points

• Lululemon shares hit a new 52-week low, falling to $97.55 after Citigroup cut its price target from $130 to $117 while maintaining a neutral rating.
• Wall Street sentiment remains cautious: BMO initiated coverage with an “underperform” rating and a $70 target, while the broader analyst consensus is “Reduce” with an average target of $114.08.
• Underlying business trends are weakening, with revenue down 4.3% year over year, comparable sales reportedly declining 9%, margin pressure, and reduced full-year guidance. A director did buy approximately $500,000 of shares, increasing his position by 70.2%.

lululemon athletica inc. (NASDAQ:LULU - Get Free Report) hit a new 52-week low during mid-day trading on Thursday after Citigroup lowered their price target on the stock from $130.00 to $117.00. Citigroup currently has a neutral rating on the stock. lululemon athletica traded as low as $97.55 and last traded at $99.72, with a volume of 9495367 shares changing hands. The stock had previously closed at $103.19.

Several other research analysts have also recently weighed in on the stock. BMO Capital Markets started coverage on shares of lululemon athletica in a report on Wednesday. They issued an "underperform" rating and a $70.00 price target for the company. Deutsche Bank Aktiengesellschaft dropped their price objective on shares of lululemon athletica from $171.00 to $127.00 and set a "hold" rating on the stock in a report on Monday, June 8th. UBS Group cut their price objective on shares of lululemon athletica from $120.00 to $106.00 and set a "neutral" rating on the stock in a research report on Friday, September 4th. Weiss Ratings upgraded lululemon athletica from a "sell (d)" rating to a "sell (d+)" rating in a report on Friday, September 4th. Finally, JPMorgan Chase & Co. dropped their price target on lululemon athletica from $154.00 to $95.00 and set a "neutral" rating on the stock in a research note on Friday, September 4th. One analyst has rated the stock with a Strong Buy rating, twenty-two have given a Hold rating and six have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, lululemon athletica presently has an average rating of "Reduce" and an average target price of $114.08.

Insider Buying and Selling at lululemon athletica

In other lululemon athletica news, Director Charles Bergh bought 4,275 shares of lululemon athletica stock in a transaction dated Monday, June 15th. The stock was bought at an average price of $117.05 per share, with a total value of $500,388.75. Following the completion of the transaction, the director owned 10,365 shares in the company, valued at $1,213,223.25. The trade was a 70.20% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Corporate 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: New CEO Heidi O’Neill is beginning a company reset focused on improving product launches, brand sentiment, traffic and international growth. A successful turnaround could provide a catalyst after the stock’s prolonged decline. Lululemon's New CEO Inherits a 52% Stock Collapse
• Positive Sentiment: Citigroup lowered its price target to $117 but maintained a neutral rating, implying potential upside from the current trading level if execution and demand stabilize.
• Neutral Sentiment: Investor attention has intensified, with LULU among the most-searched stocks. This may increase trading activity but does not by itself signal improving fundamentals. Investors Heavily Search lululemon
• Neutral Sentiment: Law firms Levi & Korsinsky and Pomerantz are investigating potential investor claims related to disclosures about IEEPA tariff refunds and the company’s lowered guidance. The investigations are preliminary and do not establish wrongdoing, but they add legal and reputational uncertainty. Levi & Korsinsky Investigation Notice
• Negative Sentiment: BMO initiated coverage with an “underperform” rating and a $70 target, citing weakening demand and margin pressure. Citi also reduced its target, reinforcing cautious Wall Street sentiment.
• Negative Sentiment: Recent results showed revenue down 4.3% year over year, while comparable sales reportedly fell 9%, led by weakness in the Americas. Gross-margin contraction and higher selling, general and administrative expenses are worsening profitability.
• Negative Sentiment: The latest EPS benefited by approximately $0.86 per share from a one-time $134.5 million tariff refund. Excluding that benefit, underlying earnings were weaker, while full-year guidance was cut for the second time and third-quarter revenue is expected to decline sharply.
• Negative Sentiment: Analysts and investors continue to cite changing consumer preferences, negative social-media sentiment, weaker traffic, intense competition and product-launch issues as barriers to a near-term recovery. Shifting Consumer Preferences Continue to Impact Nike and Lululemon

Institutional Trading of lululemon athletica

Institutional investors have recently bought and sold shares of the business. Uniplan Investment Counsel Inc. bought a new position in shares of lululemon athletica during the fourth quarter worth approximately $26,000. Elyxium Wealth LLC bought a new stake in shares of lululemon athletica in the fourth quarter valued at approximately $31,000. Rexford Capital Inc. acquired a new stake in lululemon athletica during the first quarter worth approximately $31,000. DV Equities LLC acquired a new stake in lululemon athletica during the fourth quarter worth approximately $31,000. Finally, Gould Capital LLC bought a new position in lululemon athletica during the 1st quarter worth $32,000. Institutional investors own 85.20% of the company's stock.

lululemon athletica Trading Down 3.4%

The stock has a market cap of $11.83 billion, a P/E ratio of 8.17, a price-to-earnings-growth ratio of 2.69 and a beta of 0.87. The stock has a 50 day simple moving average of $117.59 and a 200 day simple moving average of $134.39.

lululemon athletica (NASDAQ:LULU - Get Free Report) last released its earnings results on Thursday, September 3rd. The apparel retailer reported $2.92 earnings per share for the quarter, beating analysts' consensus estimates of $1.79 by $1.13. The firm had revenue of $2.42 billion during the quarter, compared to the consensus estimate of $2.46 billion. lululemon athletica had a return on equity of 27.69% and a net margin of 12.78%.The company's revenue was down 4.3% compared to the same quarter last year. During the same period in the prior year, the company posted $3.10 EPS. 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 analysts anticipate that lululemon athletica inc. will post 8.72 earnings per share for the current year.

About lululemon athletica

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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