lululemon athletica (NASDAQ:LULU) Announces Earnings Results

lululemon athletica (NASDAQ:LULU) issued its quarterly earnings results on Thursday. The apparel retailer reported $1.69 earnings per share for the quarter, topping analysts’ consensus estimates of $1.67 by $0.02, FiscalAI reports. The firm had revenue of $2.47 billion during the quarter, compared to the consensus estimate of $2.44 billion. lululemon athletica had a return on equity of 31.61% and a net margin of 13.03%.The business’s revenue was up 4.3% compared to the same quarter last year. During the same period last year, the business posted $2.60 EPS. lululemon athletica updated its FY 2026 guidance to 10.950-11.150 EPS and its Q2 2026 guidance to 1.760-1.810 EPS.

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

• Lululemon cut its full-year revenue outlook to $11.0 billion-$11.15 billion, implying sales are now expected to be flat to down 1% versus 2025, as recent traffic softened in North America.
• Q1 results showed North America weakness, with revenue down 3% and comparable sales down 6%, while management said recent negative brand commentary hurt traffic and some product launches underperformed expectations.
• Margins were pressured by tariffs, markdowns, and higher operating costs; Q1 gross margin fell 410 basis points year over year, and management expects another 410-basis-point decline in Q2.
• China remained a bright spot, with Q1 revenue up 30% (23% constant currency) and management still expecting about 20% growth for the full year despite a late-quarter slowdown tied to brand noise.
• The company is leaning on a broader action plan to restore momentum, including more marketing spend, faster product chase capabilities, SKU reductions in stores, and enterprise efficiency initiatives to improve speed and execution over time.

lululemon athletica Stock Performance

LULU stock opened at $114.23 on Friday. The company has a market capitalization of $13.79 billion, a P/E ratio of 9.22, a price-to-earnings-growth ratio of 3.85 and a beta of 0.87. lululemon athletica has a 52-week low of $109.36 and a 52-week high of $275.60. The business has a 50-day simple moving average of $141.19 and a two-hundred day simple moving average of $169.96.

Wall Street Analysts Forecast Growth

LULU has been the subject of several research reports. The Goldman Sachs Group reduced their target price on lululemon athletica from $177.00 to $122.00 and set a “neutral” rating for the company in a research note on Friday. BNP Paribas Exane downgraded lululemon athletica from a “neutral” rating to an “underperform” rating and set a $88.00 target price for the company. in a research note on Friday. Evercore reduced their target price on lululemon athletica from $175.00 to $130.00 in a research note on Wednesday. BofA reduced their target price on lululemon athletica from $175.00 to $140.00 and set a “neutral” rating for the company in a research note on Friday. Finally, Bank of America reduced their target price on lululemon athletica from $175.00 to $140.00 and set a “neutral” rating for the company in a research note on Friday. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, twenty-nine have issued a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $165.13.

lululemon athletica News Roundup

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

• Positive Sentiment: lululemon posted first-quarter EPS of $1.69 and revenue of $2.47 billion, both slightly ahead of Wall Street estimates, showing the business is still generating profits and growing revenue overall.
• Positive Sentiment: Management said international growth remains a bright spot, with China and other overseas markets helping offset some of the weakness in North America.
• Neutral Sentiment: Several analysts reiterated neutral/hold views while cutting price targets, signaling that expectations have been reset but not all firms are calling for a deeper selloff.
• Neutral Sentiment: New commentary suggests valuation may now look more attractive after the sharp drop, but investors are waiting for proof that the turnaround is working.
• Negative Sentiment: lululemon cut its FY2026 revenue and profit guidance and issued weaker-than-expected Q2 guidance, citing ongoing headwinds, tariff costs, markdown pressure, and softer traffic.
• Negative Sentiment: Multiple brokerages lowered targets on LULU, including BofA, JPMorgan, Barclays, Wells Fargo, Piper Sandler, and others, with some downgrading the stock to hold/neutral or underperform.
• Negative Sentiment: Articles cited fading brand momentum, product misfires, and negative social/media commentary, reinforcing concerns that lululemon’s core U.S. business is losing steam ahead of the incoming CEO transition.

Insider Buying and Selling at lululemon athletica

In related news, Director Charles V. Bergh purchased 6,090 shares of the business’s stock in a transaction on Friday, March 20th. The stock was acquired at an average price of $164.20 per share, for a total transaction of $999,978.00. Following the purchase, the director owned 6,090 shares of the company’s stock, valued at approximately $999,978. This trade represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CEO Andre Maestrini purchased 3,275 shares of the business’s stock in a transaction on Wednesday, April 1st. The shares were bought at an average price of $151.02 per share, with a total value of $494,590.50. Following the purchase, the chief executive officer directly owned 34,551 shares in the company, valued at approximately $5,217,892.02. The trade was a 10.47% increase in their position. The disclosure for this purchase is available in the SEC filing. Company insiders own 0.54% of the company’s stock.

Hedge Funds Weigh In On lululemon athletica

Hedge funds have recently added to or reduced their stakes in the stock. Uniplan Investment Counsel Inc. acquired a new position in lululemon athletica during the 4th quarter valued at about $26,000. DV Equities LLC acquired a new position in lululemon athletica during the 4th quarter valued at about $31,000. GW&K Investment Management LLC boosted its stake in lululemon athletica by 70.3% during the 4th quarter. GW&K Investment Management LLC now owns 189 shares of the apparel retailer’s stock valued at $39,000 after purchasing an additional 78 shares during the last quarter. Quattro Advisors LLC bought a new position in shares of lululemon athletica during the 4th quarter worth approximately $46,000. Finally, Golden State Wealth Management LLC lifted its position in shares of lululemon athletica by 43.6% during 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. Institutional investors and hedge funds own 85.20% of the company’s stock.

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.