lululemon athletica (NASDAQ:LULU) Downgraded by Zacks Research to “Strong Sell”

Zacks Research lowered shares of lululemon athletica (NASDAQ:LULU) from a hold rating to a strong sell rating in a research report report published on Thursday morning,Zacks reports. Zacks Research also issued estimates for lululemon athletica’s Q1 2028 earnings at $1.58 EPS and Q2 2028 earnings at $1.98 EPS.

Several other equities research analysts have also recently weighed in on the company. Telsey Advisory Group lowered their target price on lululemon athletica from $122.00 to $110.00 and set a “market perform” rating for the company in a report on Friday, September 4th. Daiwa Securities Group lowered 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. Robert W. Baird cut their target price 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. Piper Sandler lowered their price target on shares of lululemon athletica from $110.00 to $80.00 and set a “neutral” rating for the company in a research report on Friday, September 4th. Finally, Truist Financial reissued a “sell” rating and set a $82.00 price objective (down from $94.00) on shares of lululemon athletica in a report on Friday, September 4th. One analyst has rated the stock with a Strong Buy rating, twenty-one have given a Hold rating and seven have issued a Sell rating to the stock. According to MarketBeat, the stock has an average rating of “Reduce” and an average price target of $110.57.

lululemon athletica Price Performance

Shares of LULU opened at $98.06 on Thursday. lululemon athletica has a 1-year low of $95.35 and a 1-year high of $225.98. The company has a 50-day moving average of $115.01 and a 200 day moving average of $130.58. The firm has a market capitalization of $11.36 billion, a price-to-earnings ratio of 8.03, a PEG ratio of 2.37 and a beta of 0.87.

lululemon athletica (NASDAQ:LULU) last issued its earnings results on Thursday, September 3rd. The apparel retailer reported $2.92 EPS for the quarter, topping analysts’ consensus estimates of $1.79 by $1.13. lululemon athletica had a net margin of 12.78% and a return on equity of 27.69%. The business had revenue of $2.42 billion for the quarter, compared to the consensus estimate of $2.46 billion. During the same period in the prior year, the firm earned $3.10 EPS. The company’s revenue for the quarter 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. On average, equities analysts anticipate that lululemon athletica will post 9.54 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the company. BlackRock Inc. purchased a new position in lululemon athletica in the second quarter worth $1,010,565,000. Geode Capital Management LLC grew its stake in lululemon athletica by 2.4% during the 4th quarter. Geode Capital Management LLC now owns 3,049,911 shares of the apparel retailer’s stock worth $631,526,000 after buying an additional 71,464 shares during the last quarter. Flossbach Von Storch SE acquired a new position in lululemon athletica during the 2nd quarter valued at about $207,392,000. Norges Bank purchased a new stake in lululemon athletica in the fourth quarter valued at about $362,598,000. Finally, Boston Partners acquired a new stake in lululemon athletica in the fourth quarter worth about $304,875,000. 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’s product strategy refresh—including new styles, faster replenishment and greater brand investment—could support a recovery in full-price sales if the initiatives improve product appeal and reduce markdowns. Lululemon Refreshes Product Strategy: Will New Styles Click?
• Positive Sentiment: International expansion remains a potential long-term growth engine, offering the company an opportunity to offset weakness in North America through new markets and stores. International Growth Could Support Lululemon
• Positive Sentiment: Nike and Lululemon agreed to end their patent dispute involving Mirror home-workout technology, removing a litigation overhang, although the settlement does not directly improve operating results. Nike and Lululemon End Mirror Patent Dispute
• Neutral Sentiment: Analyst estimates were mixed: Zacks Research raised its Q2 2028 EPS forecast to $1.98 from $1.92 but lowered its Q1 2028 estimate to $1.58 from $1.72. The firm maintained a “Hold” rating. Lululemon Analyst Estimate Changes
• Negative Sentiment: Recent quarterly results showed earnings helped by tariff refunds, but revenue fell short of expectations, declined year over year and was accompanied by weaker regional demand and lower full-year guidance. Investors may view the profit benefit as temporary. LULU Q2 Earnings Show Tariff Refunds but Demand Remains Under Pressure
• Negative Sentiment: Lululemon has cut its fiscal 2026 revenue and profit outlook for the second time this year, intensifying concerns about demand, competition and execution as new CEO Heidi O’Neill begins her tenure. Lululemon Cuts Its Outlook Again
• Negative Sentiment: Women’s leggings sales reportedly fell about 20% in fiscal Q2, while analysts point to slowing growth, margin pressure and product-reset risks. These issues have contributed to the stock’s sharp decline and prompted some brokerages to assign an average “Reduce” rating. Lululemon Leggings Sales Decline
• Negative Sentiment: Several law firms have announced investigations into potential securities-law claims related to investor losses. These announcements can add reputational and legal uncertainty, although they do not establish wrongdoing. Lululemon Securities Investigation

lululemon athletica Company Profile

lululemon athletica inc. is a designer, distributor and retailer of athletic apparel, footwear and accessories. The company’s products are developed for activities including yoga, running, training, tennis and other forms of exercise, as well as everyday use. Its offerings include leggings, tops, shorts, outerwear, footwear, bags and fitness accessories for women and men.

Founded in 1998 in Vancouver, British Columbia, lululemon began as a yoga-focused apparel company and has expanded into a broader performance and lifestyle brand.