lululemon athletica inc. (LULU), headquartered in Vancouver, Canada, designs, distributes, and retails athletic apparel, footwear, and accessories under the lululemon brand for women and men. Valued at $17.4 billion by market cap, the company produces fitness pants, shorts, tops and jackets for yoga, dance, running, and general fitness. The athletic apparel giantis expected to announce its fiscal first-quarter earnings for 2026 in the near term.
Ahead of the event, analysts expect LULU to report a profit of $1.69 per share on a diluted basis, down 35% from $2.60 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
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For the full year, analysts expect LULU to report EPS of $12.31, down 7.2% from $13.26 in fiscal 2026. However, its EPS is expected to rise 9.2% year over year to $13.44 in fiscal 2028.
LULU stock has significantly underperformed the S&P 500 Index’s ($SPX) 30.6% gains over the past 52 weeks, with shares down 46.9% during this period. Similarly, it notably underperformed the State Street Consumer Discretionary Select Sector SPDR ETF’s (XLY) 22.3% gains over the same time frame.
LULU’s underperformance stems from North America softness, where weak store traffic, higher markdowns, and 500+ bps of tariff pressure drove flat sales and margin compression. Its ongoing investments in marketing, labor, and tech will keep operating margins pressured as management works to offset tariff headwinds and reset the U.S. business.
Analysts’ consensus opinion on LULU stock is cautious, with a “Hold” rating overall. Out of 31 analysts covering the stock, two advise a “Strong Buy” rating, 26 give a “Hold,” one recommends a “Moderate Sell,” and two advocate a “Strong Sell.” LULU’s average analyst price target is $185.17, indicating a potential upside of 28.8% from the current levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
