Zacks Research Issues Negative Estimate for LULU Earnings

Key Points

• Zacks Research cut its Q2 2027 EPS estimate for lululemon to $1.79 from $2.67 and kept a Strong Sell rating, signaling a more bearish outlook on future earnings.
• lululemon recently beat quarterly expectations, reporting EPS of $1.69 on revenue of $2.47 billion, but results were down from a year ago and the company’s FY 2026 guidance remained relatively cautious.
• Sentiment on the stock remains weak: several other analysts lowered price targets, and the broader MarketBeat consensus rating is now “Reduce,” though there was notable insider buying from director Charles V. Bergh.

lululemon athletica inc. (NASDAQ:LULU - Free Report) - Equities researchers at Zacks Research reduced their Q2 2027 EPS estimates for shares of lululemon athletica in a research report issued on Thursday, June 18th. Zacks Research analyst Team now anticipates that the apparel retailer will post earnings per share of $1.79 for the quarter, down from their prior forecast of $2.67. Zacks Research currently has a "Strong Sell" rating on the stock. The consensus estimate for lululemon athletica's current full-year earnings is $11.14 per share. Zacks Research also issued estimates for lululemon athletica's FY2027 earnings at $11.10 EPS, Q2 2028 earnings at $1.92 EPS and FY2028 earnings at $11.69 EPS.

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. lululemon athletica had a net margin of 13.03% and a return on equity of 31.26%. The firm had revenue of $2.47 billion for the quarter, compared to analysts' expectations of $2.44 billion. During the same period in the prior year, the company earned $2.60 EPS. The business's 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.

Several other equities research analysts have also issued reports on the company. 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 note on Friday, June 5th. Evercore decreased their price target on lululemon athletica from $175.00 to $130.00 in a report on Wednesday, June 3rd. Needham & Company LLC restated a "hold" rating on shares of lululemon athletica in a report on Friday, June 5th. Bank of America lowered their price target on lululemon athletica from $175.00 to $140.00 and set a "neutral" rating for the company in a research report on Friday, June 5th. Finally, Daiwa Securities Group dropped their price objective on shares of lululemon athletica from $173.00 to $120.00 and set a "neutral" rating for the company in a research note on Tuesday, June 9th. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, twenty-six have issued a Hold rating and four have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Reduce" and a consensus price target of $152.88.

lululemon athletica Price Performance

Shares of NASDAQ LULU opened at $111.77 on Monday. lululemon athletica has a 1-year low of $109.36 and a 1-year high of $252.24. The business's 50 day moving average is $133.80 and its two-hundred day moving average is $165.95. The stock has a market capitalization of $13.26 billion, a P/E ratio of 9.02, a PEG ratio of 3.60 and a beta of 0.88.

Hedge Funds Weigh In On lululemon athletica

Several hedge funds have recently bought and sold shares of the business. Norges Bank bought a new position in lululemon athletica in the 4th quarter worth about $362,598,000. Boston Partners bought a new stake in shares of lululemon athletica during the fourth quarter valued at approximately $304,875,000. Invesco Ltd. raised its stake in shares of lululemon athletica by 28.7% during the third quarter. Invesco Ltd. now owns 2,200,552 shares of the apparel retailer's stock valued at $391,544,000 after acquiring an additional 490,127 shares in the last quarter. Goldman Sachs Group Inc. boosted its holdings in shares of lululemon athletica by 77.3% in the fourth quarter. Goldman Sachs Group Inc. now owns 979,054 shares of the apparel retailer's stock valued at $203,457,000 after purchasing an additional 426,860 shares during the period. Finally, Contrarius Group Holdings Ltd purchased a new stake in shares of lululemon athletica in the fourth quarter valued at approximately $86,441,000. Institutional investors own 85.20% of the company's stock.

Insider Buying and Selling at lululemon athletica

In other lululemon athletica news, Director Charles V. Bergh bought 4,275 shares of the business's stock in a transaction dated Monday, June 15th. The shares were purchased at an average price of $117.05 per share, with a total value of $500,388.75. Following the completion of the purchase, the director owned 10,365 shares in the company, valued at $1,213,223.25. This represents a 70.20% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, insider Nicole Neuburger sold 622 shares of the stock in a transaction that occurred on 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. Company insiders own 0.54% of the company's stock.

lululemon athletica News Summary

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

• Negative Sentiment: Reports of China backlash over a Great Wall event are fueling concern that a brand controversy could weigh on demand and investor confidence. Lululemon's 46% Slide Faces Fresh China Backlash
• Negative Sentiment: Separate coverage highlights that Lululemon apologized in China after the event sparked criticism, reinforcing fears of a longer-lasting reputational hit in a strategic market. Lululemon Shares Drop 46% As China Backlash Builds
• Negative Sentiment: Zacks Research kept a Strong Sell rating and cut several future earnings estimates for Lululemon, signaling weaker expectations for longer-term profitability.
• Neutral Sentiment: One analyst note raised near-term Q1 2029 earnings estimates, but the firm still maintained a bearish overall stance, so the update is not enough to offset the negative sentiment.
• Positive Sentiment: Insider buying from Charles V. Bergh, who reportedly purchased about $500,000 of Lululemon stock, may suggest some confidence in the company’s longer-term outlook. Bullish Move: Charles V Bergh Shows Confidence, Acquires $500K In Lululemon Athletica Stock

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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