lululemon athletica (NASDAQ:LULU) Issues Earnings Results

lululemon athletica (NASDAQ:LULU) released its quarterly earnings data on Tuesday. The apparel retailer reported $5.01 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.78 by $0.23, FiscalAI reports. lululemon athletica had a net margin of 14.22% and a return on equity of 35.95%. The firm had revenue of $3.64 billion for the quarter, compared to analysts’ expectations of $3.59 billion. During the same quarter last year, the business posted $6.14 earnings per share. The company’s revenue for the quarter was up .0% compared to the same quarter last year.

Here are the key takeaways from lululemon athletica’s conference call:

• Lululemon cut 2026 profit expectations, guiding to $12.10–$12.30 EPS versus $13.26 in 2025 and forecasting ~250 basis points of operating margin contraction, with Q1 EPS of $1.63–$1.68 versus $2.60 a year ago.
• Gross margin pressure remains a near-term headwind after a 550 basis point decline in Q4 driven mainly by tariffs and higher markdowns; management expects ~$380M of tariff exposure in 2026 with ~$160M of offsets but still a ~120 bp full‑year gross margin decline.
• Management is executing a product-led action plan—raising newness to ~35% (from ~23%), launching innovations like Unrestricted Power, updated ShowZero and ThermoZen—and reports early “green shoots” and positive guest and employee response.
• Brand activations and merchandising changes (Studio Yet, BNP Paribas Open pop‑ups, new Soho and Gangnam store designs, e‑commerce improvements) are driving new guest acquisition and improved full‑price selling trends in Q1.
• International momentum and capital returns support growth and shareholder value—China revenue grew ~28% in Q4 with ~20% FY26 guidance, rest‑of‑world mid‑teens growth, ~40–45 net store openings planned, $1.8B cash on hand and ~$1.2B remaining buyback authority.

lululemon athletica Stock Up 3.8%

LULU stock opened at $165.39 on Thursday. lululemon athletica has a 52 week low of $156.64 and a 52 week high of $348.50. The firm has a market capitalization of $19.40 billion, a P/E ratio of 12.44, a price-to-earnings-growth ratio of 10.09 and a beta of 1.00. The company has a fifty day simple moving average of $181.08 and a two-hundred day simple moving average of $181.49.

lululemon athletica News Summary

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

• Positive Sentiment: Q4 beat and international strength — LULU reported EPS of $5.01 and revenue of ~$3.64B, topping estimates and showing strong international sales, which supports near-term earnings credibility and cash generation. Earnings Recap
• Positive Sentiment: Board refresh — Former Levi’s CEO Chip Bergh was added to the board, a governance move that may reassure investors amid a proxy push by founder Chip Wilson and signal better operating expertise on the board. Board Appointment
• Positive Sentiment: Focus on full-price selling and buybacks — Management has a plan to reduce markdowns and push full-price sales; combined with aggressive share repurchases (reduced shares ~3.85% in FY2025), this could support margins and EPS over time if execution succeeds. Full-price Strategy
• Neutral Sentiment: Technical/valuation view — Some analysts and market commentators argue the stock is at a multi-year low and presents a contrarian buying opportunity, but this is contingent on guidance improvement. MarketBeat Analysis
• Neutral Sentiment: Macro/sector pressure — Consumer stocks and retail multiples are under pressure after the Fed held rates and markets pulled back, which can compress valuation multiples across retail names including LULU. Market Headwinds
• Negative Sentiment: Weak FY2026 guidance — Management gave cautious revenue and EPS guidance for FY2026 (EPS guide below prior year), and Q1 revenue guidance missed expectations, which is the primary reason sentiment turned negative despite the beat. Weak Guidance
• Negative Sentiment: Analyst downgrades and lower price targets — Multiple banks (JPMorgan, UBS, Stifel, Barclays, Wells Fargo, others) trimmed price targets and shifted to neutral/hold, reflecting uncertainty on the recovery path; this increases selling pressure and caps near-term upside. Analyst Actions
• Negative Sentiment: North America demand and margin pressure — Americas comp sales remain weak (multiple quarters of flat/declines), tariffs/markdowns are pressuring margins, and exec/strategic uncertainty (ongoing CEO search / founder activism) raises execution risk. Demand & Margin Concerns

Analyst Ratings Changes

A number of analysts have issued reports on the stock. JPMorgan Chase & Co. reduced their price target on shares of lululemon athletica from $209.00 to $196.00 and set a “neutral” rating on the stock in a report on Wednesday. Evercore increased their price objective on shares of lululemon athletica from $180.00 to $215.00 in a report on Friday, December 12th. Telsey Advisory Group cut their price objective on lululemon athletica from $215.00 to $175.00 and set a “market perform” rating for the company in a research report on Wednesday. Bank of America reduced their target price on lululemon athletica from $220.00 to $200.00 and set a “neutral” rating on the stock in a report on Tuesday, March 3rd. Finally, Weiss Ratings upgraded lululemon athletica from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Thursday, February 5th. Two investment analysts have rated the stock with a Strong Buy rating, two have given a Buy rating, thirty have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, lululemon athletica has an average rating of “Hold” and a consensus target price of $215.33.

Institutional Trading of lululemon athletica

Several hedge funds have recently made changes to their positions in the business. Brighton Jones LLC bought a new stake in lululemon athletica during the fourth quarter worth approximately $429,000. NewEdge Advisors LLC lifted its stake in shares of lululemon athletica by 5.1% in the 1st quarter. NewEdge Advisors LLC now owns 3,848 shares of the apparel retailer’s stock valued at $1,089,000 after purchasing an additional 186 shares during the last quarter. Glenview Trust co lifted its stake in shares of lululemon athletica by 39.9% in the 2nd quarter. Glenview Trust co now owns 996 shares of the apparel retailer’s stock valued at $237,000 after purchasing an additional 284 shares during the last quarter. Diversify Advisory Services LLC purchased a new position in shares of lululemon athletica in the 2nd quarter worth approximately $508,000. Finally, Raymond James Financial Inc. boosted its holdings in shares of lululemon athletica by 10.7% in the 2nd quarter. Raymond James Financial Inc. now owns 112,632 shares of the apparel retailer’s stock worth $26,759,000 after purchasing an additional 10,891 shares during the period. 85.20% of the stock is currently owned by hedge funds and other institutional investors.

About lululemon athletica

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.