lululemon athletica (NASDAQ:LULU) Issues Quarterly Earnings Results, Beats Expectations By $0.02 EPS

lululemon athletica (NASDAQ:LULU) announced its earnings results on Thursday. The apparel retailer reported $1.69 earnings per share for the quarter, beating the consensus estimate of $1.67 by $0.02, FiscalAI reports. lululemon athletica had a return on equity of 34.82% and a net margin of 14.22%.The firm had revenue of $2.47 billion during the quarter, compared to the consensus estimate of $2.43 billion. lululemon athletica updated its FY 2026 guidance to 10.950-11.150 EPS and its Q2 2026 guidance to 1.760-1.810 EPS.

lululemon athletica Stock Down 0.9%

lululemon athletica stock traded down $1.11 during trading hours on Thursday, hitting $124.92. The stock had a trading volume of 7,969,011 shares, compared to its average volume of 2,904,065. The company has a 50-day moving average of $142.80 and a two-hundred day moving average of $170.67. The company has a market cap of $15.08 billion, a PE ratio of 9.39, a price-to-earnings-growth ratio of 3.90 and a beta of 0.87. lululemon athletica has a fifty-two week low of $116.63 and a fifty-two week high of $338.49.

Analyst Upgrades and Downgrades

Several equities analysts have commented on LULU shares. Piper Sandler cut their price target on lululemon athletica from $190.00 to $130.00 and set a “neutral” rating for the company in a report on Friday, May 22nd. Evercore cut their price target on lululemon athletica from $175.00 to $130.00 in a report on Wednesday. Wells Fargo & Company cut their price target on lululemon athletica from $175.00 to $150.00 and set an “equal weight” rating for the company in a report on Wednesday, March 18th. JPMorgan Chase & Co. cut their price target on lululemon athletica from $196.00 to $173.00 in a report on Wednesday, May 6th. Finally, Jefferies Financial Group cut their price target on lululemon athletica from $170.00 to $145.00 and set a “hold” rating for the company in a report on Tuesday, April 28th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, twenty-eight have given a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, lululemon athletica presently has an average rating of “Hold” and an average target price of $197.09.

Key Headlines Impacting lululemon athletica

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

• Positive Sentiment: lululemon beat first-quarter expectations, reporting EPS of $1.69 versus $1.67 expected and revenue of $2.47 billion versus $2.43 billion expected, suggesting the quarter itself was slightly better than analysts anticipated.
• Positive Sentiment: Management said North America showed some improvement, including a sequential improvement in full-price sales, which may indicate early progress in fixing merchandising and markdown issues. lululemon athletica inc. Announces First Quarter Fiscal 2026 Results
• Neutral Sentiment: Analysts recently adjusted price targets, with Sanford C. Bernstein lowering its target to $170 and Evercore cutting to $130, reflecting a more cautious stance but still implying some upside from current levels.
• Negative Sentiment: lululemon cut its FY2026 EPS guidance to $10.95-$11.15, well below the consensus estimate of $12.35, signaling slower earnings growth than investors were expecting.
• Negative Sentiment: The company also issued weak Q2 guidance, with EPS guidance of $1.76-$1.81 versus a $2.69 consensus and revenue guidance of about $2.5 billion versus $2.6 billion expected, raising concerns that near-term demand or margins are under pressure.
• Negative Sentiment: CNBC reported that lululemon cut its annual outlook and cited undisclosed “headwinds,” which added to investor concern that the slowdown may be more persistent than previously thought. Lululemon cuts annual outlook and issues weak Q2 guidance, citing undisclosed ‘headwinds’

Insider Transactions at lululemon athletica

In related news, CEO Andre Maestrini bought 3,275 shares of the company’s stock in a transaction dated Wednesday, April 1st. The stock was acquired at an average cost of $151.02 per share, with a total value of $494,590.50. Following the acquisition, the chief executive officer owned 34,551 shares in the company, valued at approximately $5,217,892.02. This represents a 10.47% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Charles V. Bergh bought 6,090 shares of the company’s stock in a transaction dated Friday, March 20th. The stock was bought at an average cost of $164.20 per share, with a total value of $999,978.00. Following the completion of the acquisition, the director owned 6,090 shares in the company, valued at $999,978. This represents a ∞ increase in their position. The SEC filing for this purchase provides additional information. 0.54% of the stock is currently owned by insiders.

Hedge Funds Weigh In On lululemon athletica

Hedge funds have recently modified their holdings of the stock. Uniplan Investment Counsel Inc. acquired a new position in shares of lululemon athletica in the 4th quarter worth approximately $26,000. DV Equities LLC acquired a new position in shares of lululemon athletica in the 4th quarter worth approximately $31,000. GW&K Investment Management LLC raised its holdings in shares of lululemon athletica by 70.3% in the 4th quarter. GW&K Investment Management LLC now owns 189 shares of the apparel retailer’s stock worth $39,000 after buying an additional 78 shares in the last quarter. Quattro Advisors LLC acquired a new position in shares of lululemon athletica in the 4th quarter worth approximately $46,000. Finally, Golden State Wealth Management LLC raised its holdings in shares of lululemon athletica by 43.6% in the 4th quarter. Golden State Wealth Management LLC now owns 280 shares of the apparel retailer’s stock worth $58,000 after buying an additional 85 shares in the last quarter. 85.20% of the stock is owned by institutional investors and hedge funds.

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.