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

lululemon athletica (NASDAQ:LULU) was downgraded by Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued to investors on Thursday, 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.

A number of other research analysts have also commented on the company. Truist Financial restated a “sell” rating and issued a $82.00 target price (down from $94.00) on shares of lululemon athletica in a research note on Friday, September 4th. BNP Paribas Exane dropped their price objective on shares of lululemon athletica from $88.00 to $44.00 and set an “underperform” rating for the company in a research note on Friday, September 4th. Barclays lowered their target price on shares of lululemon athletica from $113.00 to $95.00 and set an “equal weight” rating on the stock in a research note on Friday, September 4th. Citigroup decreased their price objective on lululemon athletica from $130.00 to $117.00 and set a “neutral” rating on the stock in a report on Wednesday, September 9th. Finally, BMO Capital Markets assumed coverage on lululemon athletica in a research note on Wednesday, September 9th. They issued an “underperform” rating and a $70.00 price target on the stock. One research analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Hold rating and seven have given a Sell rating to the company’s stock. According to MarketBeat, lululemon athletica presently has an average rating of “Reduce” and a consensus price target of $110.57.

lululemon athletica Stock Down 1.3%

Shares of LULU stock opened at $98.06 on Thursday. The stock has a 50 day moving average of $115.01 and a 200-day moving average of $130.58. The firm has a market cap of $11.36 billion, a PE ratio of 8.03, a price-to-earnings-growth ratio of 2.37 and a beta of 0.87. lululemon athletica has a 12 month low of $95.35 and a 12 month high of $225.98.

lululemon athletica (NASDAQ:LULU) last released its earnings results on Thursday, September 3rd. The apparel retailer reported $2.92 earnings per share for the quarter, beating the consensus estimate 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 during the quarter, compared to analysts’ expectations of $2.46 billion. During the same quarter last year, the company earned $3.10 earnings per share. The firm’s revenue was down 4.3% on a year-over-year basis. 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. As a group, equities analysts predict that lululemon athletica will post 9.54 EPS for the current fiscal year.

Institutional Investors Weigh In On lululemon athletica

A number of large investors have recently bought and sold shares of LULU. BlackRock Inc. acquired a new stake in lululemon athletica during the 2nd quarter valued at $1,010,565,000. Geode Capital Management LLC increased its position in lululemon athletica by 2.4% in the 4th quarter. Geode Capital Management LLC now owns 3,049,911 shares of the apparel retailer’s stock valued at $631,526,000 after acquiring an additional 71,464 shares in the last quarter. Flossbach Von Storch SE bought a new position in shares of lululemon athletica in the second quarter worth about $207,392,000. Norges Bank acquired a new position in shares of lululemon athletica during the fourth quarter worth approximately $362,598,000. Finally, Boston Partners acquired a new stake in shares of lululemon athletica in the fourth quarter valued at approximately $304,875,000. 85.20% of the stock is currently owned by institutional investors.

lululemon athletica News Roundup

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.