Truist Financial Has Lowered Expectations for lululemon athletica (NASDAQ:LULU) Stock Price

Key Points

• Truist Financial cut lululemon’s price target from $135 to $115 while keeping a hold rating, implying only modest upside from the prior close.
• Several other analysts also lowered their targets on lululemon after the latest results, reflecting a broader more cautious Wall Street view even though the consensus rating remains “Hold.”
• The stock fell sharply to $113.43 as lululemon posted mixed guidance: it beat quarterly EPS and revenue estimates, but the company also faced concerns about slowing U.S. demand and a weaker outlook for FY26.

lululemon athletica (NASDAQ:LULU - Get Free Report) had its price target lowered by research analysts at Truist Financial from $135.00 to $115.00 in a research note issued to investors on Friday,Benzinga reports. The brokerage currently has a "hold" rating on the apparel retailer's stock. Truist Financial's price target would suggest a potential upside of 1.39% from the company's previous close.

Other analysts have also recently issued research reports about the company. Jefferies Financial Group dropped their target price on lululemon athletica from $145.00 to $115.00 and set a "hold" rating on the stock in a research report on Friday. Wells Fargo & Company lowered their price objective on 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 lowered their price objective on lululemon athletica from $130.00 to $110.00 and set a "neutral" rating for the company in a research report on Friday. Barclays reduced their target price on lululemon athletica from $161.00 to $113.00 and set an "equal weight" rating for the company in a research note on Friday. Finally, UBS Group reduced their price objective on lululemon athletica from $176.00 to $153.00 and set a "neutral" rating for the company in a research note on Monday. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, twenty-eight have given a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $177.59.

lululemon athletica Price Performance

NASDAQ LULU traded down $11.49 during midday trading on Friday, hitting $113.43. 8,890,864 shares of the company traded hands, compared to its average volume of 2,987,675. The company has a market cap of $13.69 billion, a PE ratio of 8.60, a price-to-earnings-growth ratio of 3.89 and a beta of 0.87. The company's 50-day simple moving average is $142.08 and its 200-day simple moving average is $170.35. lululemon athletica has a 52 week low of $109.36 and a 52 week high of $275.60.

lululemon athletica (NASDAQ:LULU - Get Free Report) last announced its earnings results on Thursday, June 4th. The apparel retailer reported $1.69 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.67 by $0.02. The business had revenue of $2.47 billion for the quarter, compared to analysts' expectations of $2.43 billion. lululemon athletica had a return on equity of 34.82% and a net margin of 14.22%.The business's revenue for the quarter was up 4.3% on a year-over-year basis. During the same quarter last year, the firm earned $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. On average, research analysts predict that lululemon athletica will post 12.26 earnings per share for the current year.

Insider Buying and Selling

In other news, CEO Andre Maestrini acquired 3,275 shares of the stock in a transaction that occurred on Wednesday, April 1st. The shares were bought at an average cost of $151.02 per share, for a total transaction of $494,590.50. Following the acquisition, the chief executive officer owned 34,551 shares in the company, valued at approximately $5,217,892.02. This represents a 10.47% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Nicole Neuburger sold 622 shares of lululemon athletica 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 completion of the sale, the insider owned 19,156 shares in the company, valued at approximately $3,084,116. The trade was a 3.14% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.54% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in LULU. Swiss Life Asset Management Ltd raised its position in lululemon athletica by 53.1% in the fourth quarter. Swiss Life Asset Management Ltd now owns 68,093 shares of the apparel retailer's stock valued at $14,150,000 after purchasing an additional 23,623 shares during the period. Oppenheimer Asset Management Inc. raised its position in lululemon athletica by 46.6% in the fourth quarter. Oppenheimer Asset Management Inc. now owns 25,594 shares of the apparel retailer's stock valued at $5,319,000 after purchasing an additional 8,134 shares during the period. Rayburn West Financial Services LLC purchased a new stake in lululemon athletica in the fourth quarter valued at approximately $3,536,000. Gateway Investment Advisers LLC raised its position in lululemon athletica by 60.0% in the fourth quarter. Gateway Investment Advisers LLC now owns 45,062 shares of the apparel retailer's stock valued at $9,364,000 after purchasing an additional 16,901 shares during the period. Finally, Pekin Hardy Strauss Inc. raised its position in lululemon athletica by 70.0% in the third quarter. Pekin Hardy Strauss Inc. now owns 46,712 shares of the apparel retailer's stock valued at $8,311,000 after purchasing an additional 19,240 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 beat first-quarter expectations, with revenue of $2.47 billion and EPS of $1.69 coming in slightly ahead of estimates, showing the business is still generating solid near-term results. lululemon athletica inc. Announces First Quarter Fiscal 2026 Results
• Positive Sentiment: Management said there were some improving trends in North America, including sequential improvement in full-price sales, and it highlighted growth opportunities in China and product innovation. Lululemon Athletica Inc (LULU) Q1 2026 Earnings Call Highlights
• Neutral Sentiment: Several Wall Street firms lowered price targets after the report, but most kept neutral/hold-style ratings, signaling lowered expectations rather than a full capitulation on the stock. JPMorgan adjusts PT on lululemon athletica
• Neutral Sentiment: Analysts at firms including Baird, Jefferies, Barclays, Wells Fargo, Piper Sandler and Goldman Sachs also trimmed targets, reflecting a more cautious view on valuation and growth after the guidance reset. Lululemon slides as bleak forecasts deepen turnaround worries
• Negative Sentiment: Lululemon cut its FY26 revenue and profit outlook and guided Q2 revenue and EPS below consensus, reinforcing concerns that weak U.S. demand, competition and higher costs are weighing on the turnaround. Lululemon cuts annual forecasts amid slowing demand in US
• Negative Sentiment: Commentary across Reuters, MarketWatch, CNBC and other outlets emphasized slowing U.S. traffic, brand backlash, product misfires and tariff/markdown pressure, all of which point to a more prolonged recovery than investors had expected. Lululemon admits far more work is needed for a turnaround

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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