UBS Group Has Lowered Expectations for lululemon athletica (NASDAQ:LULU) Stock Price

Key Points

• UBS Group cut its price target on lululemon athletica from $153 to $124 and kept a neutral rating, reflecting more cautious expectations for the stock.
• Several other analysts also lowered their targets on LULU, with the consensus view remaining Hold and the average target price at $165.13.
• Despite the analyst caution, lululemon’s latest quarterly results beat estimates on both earnings and revenue, but the company still cut FY2026 and Q2 guidance amid ongoing headwinds.

lululemon athletica (NASDAQ:LULU - Get Free Report) had its price objective cut by UBS Group from $153.00 to $124.00 in a research report issued to clients and investors on Sunday,BayStreet.CA reports. The brokerage presently has a "neutral" rating on the apparel retailer's stock. UBS Group's target price would indicate a potential upside of 8.55% from the company's previous close.

Other analysts have also recently issued research reports about the company. Truist Financial decreased their target price on lululemon athletica from $135.00 to $115.00 and set a "hold" rating on the stock in a report on Friday. Bank of America decreased their target price on lululemon athletica from $175.00 to $140.00 and set a "neutral" rating on the stock in a report on Friday. Stifel Nicolaus decreased their target price on lululemon athletica from $176.00 to $134.00 and set a "hold" rating on the stock in a report on Friday. Wells Fargo & Company decreased their target price on lululemon athletica from $150.00 to $110.00 and set an "equal weight" rating on the stock in a report on Friday. Finally, Freedom Capital upgraded lululemon athletica from a "strong sell" rating to a "hold" rating in a report on Friday. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, twenty-nine have issued a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $165.13.

lululemon athletica Stock Down 8.6%

Shares of LULU stock traded down $10.69 during trading hours on Friday, reaching $114.23. 16,174,800 shares of the company's stock were exchanged, compared to its average volume of 3,360,703. lululemon athletica has a fifty-two week low of $109.36 and a fifty-two week high of $275.60. The stock has a market capitalization of $13.79 billion, a P/E ratio of 9.22, a P/E/G ratio of 3.52 and a beta of 0.87. The business has a fifty day moving average price of $141.19 and a 200-day moving average price of $169.96.

lululemon athletica (NASDAQ:LULU - Get Free Report) last issued its quarterly earnings results on Thursday, June 4th. The apparel retailer reported $1.69 EPS for the quarter, topping analysts' consensus estimates of $1.67 by $0.02. lululemon athletica had a return on equity of 31.61% and a net margin of 13.03%.The company had revenue of $2.47 billion during the quarter, compared to analyst estimates of $2.44 billion. During the same period in the previous year, the company earned $2.60 earnings per share. The company's quarterly revenue 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, research analysts expect that lululemon athletica will post 12.35 EPS for the current fiscal year.

Insider Transactions at lululemon athletica

In other news, Director Charles V. Bergh purchased 6,090 shares of lululemon athletica stock in a transaction on Friday, March 20th. The stock was purchased at an average price of $164.20 per share, with a total value of $999,978.00. Following the transaction, the director directly owned 6,090 shares in the company, valued at $999,978. The trade was a ∞ increase in their position. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CEO Andre Maestrini purchased 3,275 shares of lululemon athletica stock in a transaction on Wednesday, April 1st. The shares were purchased at an average cost of $151.02 per share, with a total value of $494,590.50. Following the transaction, the chief executive officer owned 34,551 shares in the company, valued at approximately $5,217,892.02. The trade was a 10.47% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 0.54% of the stock is currently owned by insiders.

Institutional Trading of lululemon athletica

A number of institutional investors have recently made changes to their positions in LULU. Swiss Life Asset Management Ltd increased its position in shares of lululemon athletica by 53.1% during the 4th quarter. Swiss Life Asset Management Ltd now owns 68,093 shares of the apparel retailer's stock worth $14,150,000 after purchasing an additional 23,623 shares during the last quarter. Oppenheimer Asset Management Inc. increased its holdings in shares of lululemon athletica by 46.6% during the 4th quarter. Oppenheimer Asset Management Inc. now owns 25,594 shares of the apparel retailer's stock worth $5,319,000 after acquiring an additional 8,134 shares during the last quarter. Rayburn West Financial Services LLC acquired a new position in shares of lululemon athletica during the 4th quarter worth approximately $3,536,000. Gateway Investment Advisers LLC increased its holdings in shares of lululemon athletica by 60.0% during the 4th quarter. Gateway Investment Advisers LLC now owns 45,062 shares of the apparel retailer's stock worth $9,364,000 after acquiring an additional 16,901 shares during the last quarter. Finally, Pekin Hardy Strauss Inc. increased its holdings in shares of lululemon athletica by 70.0% during the 3rd quarter. Pekin Hardy Strauss Inc. now owns 46,712 shares of the apparel retailer's stock worth $8,311,000 after acquiring an additional 19,240 shares during 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 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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