lululemon athletica (NASDAQ:LULU) Earns Underperform Rating from Analysts at BMO Capital Markets

Analysts at BMO Capital Markets initiated coverage on shares of lululemon athletica (NASDAQ:LULU) in a report released on Wednesday, Benzinga reports. The firm set an “underperform” rating and a $70.00 price target on the apparel retailer’s stock. BMO Capital Markets’ price target points to a potential downside of 32.16% from the stock’s previous close.

Several other equities analysts also recently commented on the company. JPMorgan Chase & Co. dropped their target price on lululemon athletica from $154.00 to $95.00 and set a “neutral” rating for the company in a research report on Friday, September 4th. Piper Sandler decreased their price target on lululemon athletica from $110.00 to $80.00 and set a “neutral” rating for the company in a report on Friday, September 4th. Jefferies Financial Group reduced their price target on shares of lululemon athletica from $145.00 to $115.00 and set a “hold” rating for the company in a report on Friday, June 5th. Citigroup decreased their price target on shares of lululemon athletica from $185.00 to $130.00 and set a “neutral” rating for the company in a research note on Tuesday, June 9th. Finally, Sanford C. Bernstein reduced their price objective on shares of lululemon athletica from $145.00 to $115.00 and set a “market perform” rating for the company in a research report on Friday, September 4th. One research analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Hold rating and six have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, lululemon athletica has a consensus rating of “Reduce” and a consensus price target of $114.60.

lululemon athletica Price Performance

LULU opened at $103.19 on Wednesday. The company has a market capitalization of $12.25 billion, a P/E ratio of 8.45, a P/E/G ratio of 2.05 and a beta of 0.87. lululemon athletica has a fifty-two week low of $97.99 and a fifty-two week high of $225.98. The firm’s fifty day moving average price is $117.93 and its two-hundred day moving average price is $134.98.

lululemon athletica (NASDAQ:LULU) last released its quarterly 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. The company had revenue of $2.42 billion during the quarter, compared to analysts’ expectations of $2.46 billion. lululemon athletica had a net margin of 12.78% and a return on equity of 27.69%. The business’s quarterly revenue was down 4.3% compared to the same quarter last year. During the same quarter in the prior year, the company earned $3.10 earnings per share. 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 research analysts expect that lululemon athletica will post 11.14 EPS for the current fiscal year.

Insider Buying and Selling at lululemon athletica

In other news, Director Charles Bergh purchased 4,275 shares of the company’s stock in a transaction dated Monday, June 15th. The shares were purchased at an average cost of $117.05 per share, for a total transaction of $500,388.75. Following the purchase, the director directly owned 10,365 shares in the company, valued at approximately $1,213,223.25. This represents a 70.20% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. 0.54% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of LULU. Baird Financial Group Inc. lifted its stake in lululemon athletica by 7.4% in the 2nd quarter. Baird Financial Group Inc. now owns 413,412 shares of the apparel retailer’s stock worth $47,203,000 after purchasing an additional 28,643 shares in the last quarter. Beacon Investment Advisory Services Inc. boosted its stake in lululemon athletica by 14.1% during the second quarter. Beacon Investment Advisory Services Inc. now owns 5,214 shares of the apparel retailer’s stock valued at $595,000 after buying an additional 645 shares during the last quarter. Nykredit A S purchased a new position in lululemon athletica during the 2nd quarter valued at approximately $5,956,000. HighTower Advisors LLC increased its stake in lululemon athletica by 37.0% in the 2nd quarter. HighTower Advisors LLC now owns 30,841 shares of the apparel retailer’s stock worth $3,521,000 after acquiring an additional 8,336 shares during the last quarter. Finally, Groupe la Francaise purchased a new stake in shares of lululemon athletica during the 2nd quarter worth approximately $515,000. Institutional investors own 85.20% of the company’s stock.

Trending Headlines about lululemon athletica

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

• Positive Sentiment: Investor Michael Burry reportedly added or maintained a bullish position in lululemon, viewing the heavily beaten-down stock as a contrarian opportunity. His involvement may provide some support, although it does not change the company’s underlying fundamentals. Michael Burry calls Lululemon his portfolio trickster
• Neutral Sentiment: Heidi O’Neill has taken over as CEO and is expected to focus on restoring brand momentum, improving product launches and rebuilding traffic in North America and China. The leadership change could eventually help, but investors expect a lengthy turnaround. Lululemon’s New CEO Inherits a 52% Stock Collapse
• Negative Sentiment: Recent quarterly results showed revenue down 4% year over year to roughly $2.4 billion, while comparable sales declined 9%. Americas sales and traffic were particularly weak, with management citing negative social-media commentary and weaker brand sentiment.
• Negative Sentiment: Management cut fiscal 2026 guidance again. Analysts highlighted expected third-quarter revenue declines of approximately 10%–11% and a roughly 34% reduction in full-year EPS guidance at the midpoint, excluding the benefit of a tariff refund. Underlying gross margins and operating leverage also weakened after adjusting for that one-time benefit. lululemon: From Bad To Worse
• Negative Sentiment: Analysts have lowered price targets and maintained bearish ratings, citing competition, weak product momentum, tariff pressure and the risk that O’Neill’s turnaround will take longer than expected. JPMorgan resets Lululemon stock price target
• Negative Sentiment: Pomerantz LLP and other law firms announced investigations or shareholder solicitations concerning potential investor claims and alleged fiduciary-duty issues. These announcements do not establish wrongdoing, but they add reputational and legal overhang. Pomerantz investor alert

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.