Zacks Research Downgrades lululemon athletica (NASDAQ:LULU) to Strong Sell

lululemon athletica (NASDAQ:LULU) was downgraded by investment analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report issued 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.

LULU has been the subject of a number of other research reports. Evercore reduced their price target on lululemon athletica from $175.00 to $130.00 in a research report on Wednesday, June 3rd. Citigroup cut their price objective on shares of lululemon athletica from $130.00 to $117.00 and set a “neutral” rating on the stock in a research report on Wednesday, September 9th. Bank of America reduced their target price on shares of lululemon athletica from $140.00 to $122.00 and set a “neutral” rating for the company in a report on Friday, September 4th. Daiwa Securities Group cut their price target on shares of lululemon athletica from $173.00 to $120.00 and set a “neutral” rating on the stock in a research report on Tuesday, June 9th. Finally, Wells Fargo & Company reduced their price objective on shares of lululemon athletica from $105.00 to $95.00 and set an “equal weight” rating for the company in a research note on Friday, September 4th. One research analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Hold rating and seven have issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Reduce” and an average price target of $110.57.

lululemon athletica Price Performance

LULU opened at $98.06 on Thursday. The company has a market capitalization of $11.36 billion, a price-to-earnings ratio of 8.03, a P/E/G ratio of 2.37 and a beta of 0.87. The business’s 50-day moving average price is $115.01 and its two-hundred day moving average price is $130.58. lululemon athletica has a 1 year low of $95.35 and a 1 year high of $225.98.

lululemon athletica (NASDAQ:LULU) last posted its quarterly earnings data on Thursday, September 3rd. The apparel retailer reported $2.92 earnings per share for the quarter, topping 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 return on equity of 27.69% and a net margin of 12.78%.lululemon athletica’s revenue for the quarter was down 4.3% compared to the same quarter last year. During the same period in the prior year, the firm 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. Sell-side analysts anticipate that lululemon athletica will post 9.54 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Rexford Capital Inc. acquired a new stake in lululemon athletica in the 1st quarter valued at about $31,000. Gould Capital LLC acquired a new stake in shares of lululemon athletica in the first quarter valued at approximately $32,000. Reflection Asset Management bought a new position in shares of lululemon athletica during the 4th quarter worth approximately $46,000. MCF Advisors LLC increased its holdings in shares of lululemon athletica by 139.2% during the 4th quarter. MCF Advisors LLC now owns 244 shares of the apparel retailer’s stock worth $51,000 after acquiring an additional 142 shares during the last quarter. Finally, Cassaday & Co Wealth Management LLC bought a new stake in lululemon athletica in the 1st quarter valued at $38,000. 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.