Want to see LULU full AI Analyst Report?
Top Page
Lululemon Athletica
(NASDAQ:LULU)
Select Model
Select Model
Rating:66Neutral
Price Target:
$109.00
▼(-7.88% Downside)
Action:Reiterated
Date:09/06/26
The score reflects strong financial fundamentals and cash generation supported by a low earnings multiple, but is held back by clear technical weakness and a deteriorating near-term outlook from the latest earnings guidance (notably lower expected margins and EPS alongside North America demand softness).
Positive Factors
Strong profitability and cash generation
Lululemon continues to generate substantial operating and free cash flow while maintaining strong retail profitability and capital efficiency. This financial capacity can support product innovation, store expansion, technology investment and shareholder returns through the next several quarters.
Negative Factors
Persistent North American demand weakness
North America remains the company’s most significant demand problem, with weaker traffic, conversion and comparable sales extending beyond a single reporting period. Continued regional softness could limit scale benefits, pressure merchandise productivity and delay a broader growth recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and cash generation
Lululemon continues to generate substantial operating and free cash flow while maintaining strong retail profitability and capital efficiency. This financial capacity can support product innovation, store expansion, technology investment and shareholder returns through the next several quarters.
Read all positive factors
Lululemon Athletica Key Performance Indicators (KPIs)
Any
Store Count
Indicates the total number of retail locations, reflecting the company's physical presence and expansion strategy, which can drive revenue growth and brand visibility.
Indicates the total number of retail locations, reflecting the company's physical presence and expansion strategy, which can drive revenue growth and brand visibility.
Data provided by:
The Fly
The FlyLululemon Athletica (LULU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.65B
Dividend YieldN/A
Average Volume (3M)4.76M
Price to Earnings (P/E)8.3
Beta (1Y)1.10
Revenue Growth1.74%
EPS Growth-16.55%
CountryUS
Employees39,000
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)12.17
Shares Outstanding105,594,060
10 Day Avg. Volume9,061,139
30 Day Avg. Volume4,759,680
Financial Highlights & Ratios
PEG Ratio-1.41
Price to Book (P/B)4.29
Price to Sales (P/S)1.92
P/FCF Ratio23.12
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$103.37Price Target Upside-12.64% Downside
Rating ConsensusHold
Number of Analyst Covering24
EPS Forecast (FY)10.84
Revenue Forecast (FY)$11.03B
Lululemon Athletica Business Overview & Revenue Model
Company Description
Lululemon Athletica Inc., alongside its subsidiaries, specializes in the design, global distribution, and retail of athletic apparel and accessories for both women and men. Its business operations are structured into two main divisions: company-ow...
How the Company Makes Money
Lululemon makes money primarily by selling branded athletic apparel, footwear, and accessories directly to consumers at premium price points. Its main revenue stream is net revenue from product sales through (1) company-operated stores (physical r...
Lululemon Athletica Earnings Call Summary
Earnings Call Date:Jun 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Dec 03, 2026
Earnings Call Sentiment Negative
The call reflects a mixed but deteriorating near-term outlook: meaningful operational positives (rapid product cadence improvements, strong China growth, digital strength, inventory units down, community activations and buybacks) are outweighed by immediate demand softness in North America, negative brand/headline impacts, margin compression from tariffs and markdowns, higher SG&A and lowered EPS/revenue guidance. Management is executing remediation actions (marketing, faster chase, SKU rationalization, enterprise efficiencies), but the current guidance and Q1 results indicate notable near-term challenges.Positive Updates
Strong China Growth
China Mainland revenue increased 30% (23% constant currency) in Q1 with comparable sales up 13%; company continues to expect ~20% growth for full year and Q2 growth in the mid- to high-teens.
Negative Updates
Overall Revenue and Comparable Sales Softness
Total net revenue rose 4% (2% constant currency) to $2.5 billion in Q1, but comparable sales decreased 2%; North America revenue down 3% (4% constant currency) and comparable sales down 6%.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong China Growth
China Mainland revenue increased 30% (23% constant currency) in Q1 with comparable sales up 13%; company continues to expect ~20% growth for full year and Q2 growth in the mid- to high-teens.
Read all positive updates
Company Guidance
Management updated Q2 and full‑year 2026 guidance: Q2 revenue is expected to be $2.45–2.475B (down 2–3% YoY) with North America down low‑double digits (U.S. similar), China Mainland up mid‑ to high‑teens and Rest of World up high‑single to low‑double digits; Q2 gross margin is expected to decrease ~410 bps (tariffs ~+150 bps with ~100 bps offsets; markdowns ~+50 bps), SG&A to deleverage ~500 bps, operating margin ~11.6% (vs 20.7% prior), EPS $1.76–1.81 (vs $3.10 prior) and an effective tax rate ~30%; the company plans ~13 net new company‑operated stores and ~13 optimizations in Q2. For fiscal 2026 management now guides revenue $11.0–11.15B (flat to -1% YoY), North America down high‑single digits, China ~+20%, Rest of World mid‑teens, net new stores toward the low end of the prior 40–45 target with ~35 optimizations and low‑double‑digit square footage growth; full‑year gross margin down ~90 bps, markdowns flat to slightly improved, tariffs ~30 bps (largely offset), SG&A deleverage ~290 bps, operating margin down ~380 bps, EPS $10.95–11.15 (vs $13.26 in 2025), capex $700–720M, inventory dollar growth low‑ to mid‑single digits (units slightly down), and roughly $1B remaining on the share repurchase program.Lululemon Athletica Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
83
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.09B | 11.10B | 10.59B | 9.62B | 8.11B | 6.26B |
| Gross Profit | 6.22B | 6.28B | 6.27B | 5.61B | 4.49B | 3.61B |
| EBITDA | 2.56B | 2.74B | 3.02B | 2.59B | 2.02B | 1.60B |
| Net Income | 1.42B | 1.58B | 1.81B | 1.55B | 854.80M | 975.32M |
Balance Sheet | ||||||
| Total Assets | 8.48B | 8.46B | 7.60B | 7.09B | 5.61B | 4.94B |
| Cash, Cash Equivalents and Short-Term Investments | 1.39B | 1.81B | 1.98B | 2.24B | 1.15B | 1.26B |
| Total Debt | 2.14B | 1.80B | 1.58B | 1.40B | 1.07B | 881.05M |
| Total Liabilities | 3.69B | 3.49B | 3.28B | 2.86B | 2.46B | 2.20B |
| Stockholders Equity | 4.79B | 4.96B | 4.32B | 4.23B | 3.15B | 2.74B |
Cash Flow | ||||||
| Free Cash Flow | 1.35B | 921.67M | 1.58B | 1.64B | 327.81M | 994.61M |
| Operating Cash Flow | 1.98B | 1.60B | 2.27B | 2.30B | 966.46M | 1.39B |
| Investing Cash Flow | -623.96M | -662.12M | -798.17M | -654.13M | -569.94M | -427.89M |
| Financing Cash Flow | -1.18B | -1.21B | -1.65B | -548.83M | -467.49M | -844.99M |
Lululemon Athletica Technical Analysis
Negative
118.33
Price Trends
118.40
Negative
124.20
Negative
152.77
Negative
Market Momentum
-1.52
Positive
31.79
Neutral
45.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LULU, the sentiment is Negative. The current price of 118.33 is below the 20-day moving average (MA) of 118.92, below the 50-day MA of 118.40, and below the 200-day MA of 152.77, indicating a bearish trend. The MACD of -1.52 indicates Positive momentum. The RSI at 31.79 is Neutral, neither overbought nor oversold. The STOCH value of 45.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LULU.
Lululemon Athletica Risk Analysis
Lululemon Athletica disclosed 37 risk factors in its most recent earnings report. Lululemon Athletica reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lululemon Athletica Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $6.65B | 12.61 | 39.59% | 6.86% | 4.73% | 8.69% | |
79 Outperform | $6.94B | 12.46 | 20.72% | ― | 11.01% | 24.97% | |
70 Outperform | $7.88B | 6.56 | 33.13% | 3.03% | 1.05% | 44.82% | |
66 Neutral | $11.65B | 8.27 | 29.73% | ― | 1.74% | -16.55% | |
66 Neutral | $6.01B | 17.10 | 45.94% | ― | 10.35% | 146.52% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $2.91B | 10.54 | 17.24% | 2.88% | 6.22% | 65.05% |
* Consumer Cyclical Sector Average
LULU
Lululemon Athletica
100.61
-67.49
-40.15%
ANF
Abercrombie Fitch
149.67
54.28
56.90%
AEO
American Eagle
17.39
-0.44
-2.47%
GAP
Gap Inc
22.43
-0.99
-4.22%
URBN
Urban Outfitters
80.97
7.96
10.90%
VSXY
Victoria's Secret
75.56
49.91
194.58%
Lululemon Athletica Corporate Events
Business Operations and StrategyExecutive/Board Changes
Lululemon Announces Leadership Change in AI and Technology
Neutral
Aug 13, 2026
On August 13, 2026, Lululemon Athletica announced that Ranju Das ceased to serve as its Chief AI Technology Officer, marking a leadership change in the company’s technology and artificial intelligence functions. The company stated it has tr...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Lululemon Adds Independent Directors Amid Governance Changes
Positive
Jun 26, 2026
On June 24, 2026, Lululemon Athletica’s board appointed Laura Gentile and Marc Maurer as independent directors, expanding the board from nine to 11 members in connection with a previously disclosed cooperation agreement with founder Dennis &...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.